Ben Gilbert: belief

Transcript context

…That's actually a reasonable valuation. You're talking about 10x revenue and 20x operating income? But to my point on the disparity here between the most thriving team and the least thriving, sure, the Cowboys can spit off 630 million in profit. The average team spits off 127 million in profit and the least profitable team only generates 21 million in profit. A couple points here. One, NFL teams are now just always reliably profitable businesses. That's not true in most sports and it wasn't true in the NFL's history, but if you own an NFL team, you are going to get, I believe get a dividend check every year since they're cash generative. But two, this league first mentality is going to be really tested in the coming years with these enormously profitable teams at the top and these teams at the bottom. I mean, $21 million, that really illustrates why a $24 million payday coming from private equity, every individual million that you stack on top of that 21 is very impactful to your profitability as a business overall. Even though valuations have become stratospheric and the NFL is a better business than ever, the team disparity, especially on the bottom line thing, I continue to be concerned about that. That remains the bear case for the NFL going forward.…

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