One of the most storied pro sports teams of all time is getting a new $5 billion valuation and a partial sale of the team that was revealed over the weekend.
What Happened: Los Angeles Dodgers owners Mark Walter and Todd Boehly are purchasing 27% of the Los Angeles Lakers, according to Sportico.
The stake comes from Philip Anschutz, who is selling the stake that values the Lakers at a reported $5 billion.
The purchase will see an ownership group own stakes in both the Lakers and Dodgers. The teams are two of the eight most valuable franchises ranked by Sportico.
The teams won the MLB and NBA titles 16 days apart last October.
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Stocks To Watch: One of the biggest stocks to watch on the Lakers news is Madison Square Garden Sports (NYSE: MSGS), the owner of the New York Knicks. The team was valued at $5.42 billion by Sportico, while the Lakers were valued at $5.14 billion.
MSGS trades with a market cap of $4.26 billion and an enterprise value of $5.33 billion. The company also owns the NHL’s New York Rangers and other assets and a sum of the parts is worth more than the current enterprise value if the Knicks were valued similarly to the Lakers.
Charter Communications Inc (NASDAQ: CHTR) has television rights to both the Lakers and Dodgers and could see a boost in viewership with ownership cross promoting the teams. Charter has a 25-year television deal with the Dodgers for 25 years that started in 2013. The television deal with the lakers began in 2011 and is for 20 years.
The ownership group could explore a television channel of its own in the future to show both Lakers and Dodgers games. Charter could work out a deal to get bought out of the deals or could try to launch a joint venture with the teams for a future channel.
Boehly has also launched several SPACs that could see the benefits of being linked to the Lakers and Dodgers.
Horizon Acquisition Corp (NYSE: HZAC) signed a merger with Vivid Seats, which could benefit through future partnerships or exclusive deals with the Lakers and Dodgers.
Horizon Acquisition Corporation II (NASDAQ: HZON) hasn’t announced a merger yet and a potential target could benefit if it has synergies to the sports market.
English Premier League team Manchester United (NYSE: MANU) could get some movement as the team is one of the most valuable soccer clubs in the world valued at $4.2 billlion by Forbes. The company trades with a $2.5 billion market cap and $3.1 billion enterprise value.
Photo: Ramiro Pianarosa on Unsplash
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