Moag & Company’s investment banking professionals have handled a number of high-profile transactions involving professional and minor league sports franchises, sports and entertainment media, sports facilities and sports-related companies, including the following:
Aware of AOL Time Warner’s intent to divest its arenasports assets, and knowledgeable as it related to the assets themselves, Moag & Company identified and assembled the partners who would come together to form Atlanta Spirit, LLC. Moag & Company advised the partnership with respect to its acquisition of the NBA Atlanta Hawks, the NHL Atlanta Thrashers, and the operating rights to Atlanta’s Philips Arena.
Following Art Modell’s relocation of the Cleveland Browns to Baltimore in 1996, Modell decided to take on a minority partner to improve the team’s cash flow. Our team of professionals identified the minority partner for the Ravens and structured a win-win agreement for the franchise and the investor which resulted in a recapitalization of the franchise and a seamless transition of the team’s ownership.
FieldTurf Holdings, Inc. began developing synthetic turf surfaces in 1993. Because the FieldTurf product emulates natural grass more closely than any other artificial surface,sales of the product and the financial performance of the company improved rapidly with revenues growing from $8.6 million in 1999 to $24.5 million in 2000, for example. In the fall of 2000, CEO John Gilman opted to undertake a private financing effort to raise $12.5 million. Our team identified AIG Horizon Partners as the lead investor, brought in the Quarterback Club as a strategic investor, and handled valuation negotiations.
A partner of Lincoln Holdings, LLC, an entity that owns 100% of the Washington Capitals and 44% of Washington Sports and Entertainment LP (owner of the Washington Wizards, Mystics and MCI Center) decided to sell his ownership interest. Our team identified the ultimate buyer and advised the seller on the negotiation. The sale price of the ownership interest represented a 25% increase from the partner’s initial investment two years prior.
Maryland Baseball, LLC transformed a trio of struggling franchises into three of the most successful and profitable teams in minor league baseball. Our sports investment banking group was hired to divest all three teams, plus related food and ballpark services companies. We recommended selling the assets in a modified auction setting. Each team sold at a near 100% premium over the second highest value within each league.
Moag & Company was retained by Steve Ross, chairman of the Related Cos., to advise on the acquisition of the Miami Dolphins National Football League franchise. Moag & Company successfully negotiated a deal whereby Mr. Ross acquired 50 percent of the Dolphins, Dolphins Stadium and the developable land around the stadium. Mr. Ross has an option to acquire an additional 45 percent of the team and stadium. The completion of this deal marks the first ever billion dollar sale of a professional sports franchise in the United States.
When the Milwaukee Brewers, then owned by the Selig family, were for sale Moag & Company was retained by Los Angeles investor Mark Attanasio to pursue the acquisition. Moag & Company advised, conducted due diligence and negotiated on behalf of Mr. Attanasio.
On the short list of the NBA’s “go-to-guys” as it relates to financial advisory services, Moag & Company first advised the league with respect to a potential relocation market for the then-Charlotte Hornets. Later, Moag & Company negotiated on behalf of the league the development agreement and lease for a new arena in Charlotte, enabling the league to secure a $300 million expansion fee for the Charlotte Bobcats franchise. Currently, Moag and Company is negotiating on behalf and advising the league as it relates to building a new arena in Sacramento, CA for the Sacramento Kings.
San Diego Ballpark Funding was seeking $135 million in senior secured notes to provide a portion of the private funds required for the Padres new ballpark and surrounding complex. Our sports investment banking group performed extensive due diligence on the Padres’ operations and financials, compiled a comprehensive list of potential investors, wrote and distributed the offering memorandum, worked with the Padres to identify a lead investor, and coordinated negotiations to reach a final agreement on terms.
Moag & Company was retained by John Moores, majority shareholder of San Diego Padres, LP, to advise on the sale of the franchise. Moag & Company partnered with Allen & Company to perform extensive due diligence on the Padres’ operations and financials, compile a comprehensive list of potential investors, develop a investor presentation for each potential investor, successfully identify a buyer, and coordinate negotiations to reach a purchase agreement. The deal was completed at the second highest price ever paid for a Major League Baseball franchise.
Moag & Company was retained by Rams Football Co. Inc. to identify opportunities for the sale of the Team. Moag & Company performed extensive due diligence on the Rams’ operations and financials, compiled a comprehensive list of potential acquirers, produced an offering memorandum, and successfully identified a buyer.
Moag & Company was retained by Frederick Smith, Dwight Schar and Robert Rothman, collectively owning approximately a 40 percent minority stake in Washington Football Inc., to advise on the sale of their collective stake. In an exceedingly complex and tortured transaction, Moag & Company performed extensive due diligence on the Washington Football Club’s operations and financials, compiled a comprehensive list of potential investors, successfully identify a buyer, and coordinated negotiations to reach an accepted offer. Despite the opposition of the majority control owner of Washington Football Inc., who refused to exercise his right of first refusal to match the accepted offer, the deal was completed at the highest valuation ever paid for a National Football League franchise.
Moag & Company was retained by Woodward Camp, Inc. to advise on the sale of the Company. Woodward is one of the most respected and well-known brands in the action sports culture. Woodward’s facilities in Pennsylvania, California, Colorado, and China have graduated virtually all of today’s action sport stars. Moag & Company successfully completed a deal whereby Powdr Corp acquired a majority stake in the Company. Powdr Corp is one of the largest ski resort operators in North America.