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Washington D.C. – josh Harris, the managing partner of the Washington Commanders, has articulated his skepticism about Major League sports teams pursuing Initial public Offerings (IPOs), despite the continually increasing market value of these empires. Harris shared his views during a recent appearance at the CNBC Sport and Boardroom’s Game Plan conference in California, providing insights into the ownership structures within professional sports.
The Allure of Private Ownership
Table of Contents
- 1. The Allure of Private Ownership
- 2. Public Markets and Long-Term Investment
- 3. HBSE’s Growing Portfolio
- 4. frequently asked Questions About Sports Team Ownership
- 5. What alternative funding strategies might Josh harris prioritize over public offerings for his sports assets?
- 6. Josh Harris: More Sports assets Unlikely to Become Publicly Traded
- 7. Harris’s Current Portfolio & Public Market Trends
- 8. Factors Discouraging Further Public Listings
- 9. The 76ers IPO: A Unique Case Study
- 10. The Devils & Other Assets: A Different Landscape
- 11. Alternative Funding Strategies
- 12. Impact of Global Economic Conditions
- 13. Future Outlook: A Measured Approach
Harris, who also holds significant stakes in the Philadelphia 76ers, New jersey Devils, and Crystal Palace Football Club through Harris Blitzer Sports & Entertainment (HBSE), explained that current market conditions favor private valuations over public ones. He stated that sports franchises have generally achieved higher valuations when remaining privately held,a trend he doesn’t foresee changing anytime soon.
“when you think about IPOs and sports assets being public so far, they’ve been valued more highly as private assets,” Harris said. “You haven’t seen the public valuations exceed the private valuations; therefore,people have tended to keep them private.”
Public Markets and Long-Term Investment
harris highlighted a critical concern for team owners: the ability to make long-term investments, even if they are not immediately profitable. He believes public markets often prioritize short-term gains,possibly hindering a team’s ability to invest in its future success. This is especially relevant considering the Commanders’ recent $3.7 billion deal to return to Washington, D.C., a venture that won’t yield considerable returns for years.
“People have tended to keep them private because ultimately as someone who is running a team, you want to be able to spend to win,” Harris explained. “You want to be able to take a very long-term perspective, and the public markets haven’t always embraced that.”
The approach of private equity investment has been a positive one, according to Harris. He noted that many funds offer long-term investment without seeking control, allowing owners to maintain their vision for the team and its community impact. The NFL approved selective private equity investment in franchises last year, a move seen as a way to secure capital without sacrificing ownership control.
HBSE’s Growing Portfolio
HBSE has quickly become a dominant force in the sports industry. The firm, co-founded with David Blitzer in 2017, is now valued at $14.58 billion, placing it third on CNBC’s 2025 list of the Most Valuable sports Empires. Recently, HBSE secured a $250 million franchise fee for a new WNBA expansion team in Philadelphia, set to begin play in 2030.
| Organization | Estimated Value (2025) | Key Sports Holdings |
|---|---|---|
| Harris Blitzer Sports & Entertainment (HBSE) | $14.58 Billion | Washington Commanders (NFL), Philadelphia 76ers (NBA), New Jersey Devils (NHL), Crystal Palace (Premier League), Philadelphia WNBA Expansion team |
| Madison Square Garden Sports | varies | New York Knicks (NBA), New York Rangers (NHL) |
Did You Know? the Washington Commanders’ relocation deal to D.C. represents one of the largest stadium investments in professional sports history.
Pro Tip: Understanding the interplay between private and public investment is crucial for analyzing the financial health and long-term strategies of professional sports teams.
The debate surrounding ipos for sports teams isn’t new. Historically, public ownership has been limited, with concerns about short-term pressures impacting team performance and community engagement. This trend has persisted despite the growing financial success of major league sports, demonstrating a consistent preference for private control among team owners. The landscape could shift, however, as leagues explore innovative financing options and fan engagement strategies.
The NFL, NBA, MLB, and NHL all possess unique ownership structures, regulations, and financial dynamics. The decision to go public would require careful consideration of these factors, along with potential impacts on league governance and team operations.
frequently asked Questions About Sports Team Ownership
- Why are most sports teams privately owned? Most teams are privately owned as private valuations are generally higher,and owners desire long-term control without pressure from public markets.
- What does HBSE stand for? HBSE stands for Harris Blitzer Sports & Entertainment, a conglomerate co-founded by Josh Harris and David Blitzer.
- What is the significance of the commanders’ new stadium deal? The $3.7 billion deal to relocate the Commanders back to Washington, D.C., signifies a major investment in the team’s future and the city’s sports infrastructure.
- How is private equity changing sports ownership? Private equity firms are increasingly investing in sports franchises, providing capital while allowing owners to retain control of long-term strategies.
- Could we see more sports teams going public in the future? While currently unlikely, changes in market conditions or league regulations could lead to more teams considering IPOs.
What are your thoughts on the trend of private equity investment in professional sports? Do you believe that publicly traded sports teams would be more or less focused on winning?
Share your opinions in the comments below!
What alternative funding strategies might Josh harris prioritize over public offerings for his sports assets?
Josh Harris: More Sports assets Unlikely to Become Publicly Traded
Harris’s Current Portfolio & Public Market Trends
Josh Harris, principal owner of the Philadelphia 76ers and the New Jersey Devils, has become a critically important figure in sports ownership. Following the successful, albeit complex, public listing of a minority stake in the 76ers, the question arises: will more of Harris’s sports assets follow suit? current indicators suggest further public offerings are improbable in the near term. The 76ers deal, valued at $3.65 billion, was unique, capitalizing on strong investor interest in the NBA and professional sports franchises as alternative investments. Though, replicating that success isn’t guaranteed.
Factors Discouraging Further Public Listings
Several key factors are contributing to a cautious approach regarding additional sports team valuations entering the public market. These include:
* market Volatility: The overall economic climate and fluctuations in the stock market substantially impact investor appetite for risk. A downturn could make it harder to achieve desired valuations.
* Limited Comparables: the 76ers deal was a relatively rare event. A lack of consistent publicly traded sports teams makes it difficult for investors to accurately assess risk and potential returns.
* Control Concerns: Harris, like many owners, likely values maintaining control over his teams. Selling significant equity through a public offering dilutes ownership and decision-making power.
* Private Equity Interest: Private equity firms remain highly active in pursuing sports team investments, often offering attractive valuations without the scrutiny and regulatory requirements of a public listing.
The 76ers IPO: A Unique Case Study
The partial IPO of the Philadelphia 76ers was driven by a specific set of circumstances. Harris Blitzer Sports & Entertainment (HBSE) sought capital for strategic investments, including arena growth and team operations.The offering wasn’t a full sale of the team, but rather a sale of a minority stake.
* Valuation Metrics: The $3.65 billion valuation placed on the 76ers highlighted the growing financial strength of the NBA and the potential for revenue growth through media rights, sponsorships, and ticket sales.
* Investor Profile: The IPO attracted a diverse range of investors, including institutional investors, high-net-worth individuals, and even retail investors eager to gain exposure to the sports industry.
* Regulatory Hurdles: The IPO process involved navigating complex SEC regulations and ensuring full transparency regarding the team’s financial performance and future prospects.
The Devils & Other Assets: A Different Landscape
The New Jersey Devils, co-owned by Harris, present a different scenario. While the NHL is a valuable league, it generally commands lower valuations than the NBA. Furthermore, the Devils’ arena situation and recent on-ice performance may not be as attractive to public market investors.
Other assets within the HBSE portfolio, such as the Prudential Centre, also face unique challenges. Real estate investments, while possibly lucrative, are subject to different market dynamics than sports franchises.
Alternative Funding Strategies
Instead of pursuing further public listings, Harris is likely to explore alternative funding strategies:
- Private Capital Raises: Securing additional capital from private investors and institutional funds allows Harris to maintain control while accessing necessary funds.
- Debt Financing: Utilizing debt financing, such as loans and bonds, can provide capital without diluting ownership.
- Strategic partnerships: Forming strategic partnerships with corporations and media companies can generate revenue and enhance brand value.
- Minority Stake Sales (Private): Selling smaller,private minority stakes to select investors can provide capital without the complexities of a public offering.
Impact of Global Economic Conditions
The broader global economy plays a crucial role. rising interest rates, inflation, and geopolitical instability can all dampen investor enthusiasm for riskier assets like sports teams. A recessionary environment would likely make it even more challenging to successfully launch a public offering. Financial markets are currently sensitive to these factors.
Future Outlook: A Measured Approach
While the possibility of future public listings can’t be entirely ruled out, Josh Harris is expected to adopt a measured approach. He will likely prioritize maintaining control, maximizing profitability, and exploring alternative funding options before considering another foray into the public market. The success of the 76ers IPO doesn’t guarantee similar outcomes for other assets, and the current economic climate adds another layer of complexity. Sports business is constantly evolving, and Harris will need to adapt his strategy accordingly.
