Sports is a bigger business than many people realize. Fenway Sports Group the owners of the Boston Red Sox, Liverpool F.C., Fenway Park, along with other sports properties and real estate. Announced on Friday, that US-based investment firm RedBird Capital is “nearing a deal to acquire more than 10% of Fenway Sports Group for approximately $750 million.”
Originally named New England Sports Ventures (NESV), Fenway Sports Group was founded in 2001 when John Henry, Tom Werner, Les Otten, The New York Times, and others successfully acquired the Boston Red Sox for ~$700 million.
Today, after one name change and more than two decades of ownership, John Henry and Fenway Sports Group have expanded into one of the most powerful sports entities in the entire world.
The craziest part?
Through a 2011 deal with LeBron James that saw him take a 2% ownership stake in Liverpool F.C., Fenway Sports Group also owns half of the NBA legend’s marketing and brand rights (Source).
Fenway Sports Group has quietly become one of the most powerful sports entities in the entire world.
As for RedBird Capital, they bring valuable sports experience to the partnership as well. Over the course of the last few years, RedBird Capital has acquired full or partial stakes in multiple sports entities.
What do you think about how the value of Sports has increased in the past 20 years and how a single team is more than just one entity? Will the infusion of new capital by selling off a piece of the organization drive up the value of Fenway Sports Group? Is Fenway Sports Group setting itself up to be sold in its entirety in the future?
*Click on the “Full Loaf” icon to read the full article! After you read the article come back and tell us your thoughts.
The Fenway sports group and the Boston Red sox overall as whole organization has always been healthy, they are known for big contracts and pay days for players. I do believe that they could be able to infusion of new capital by selling off a piece of the organization drive up the value of Fenway Sports Group. I honestly don’t believe Fenway is setting themselves up to be sold in its entirety in the future because they just make too much money and are too powerful.