Ben Gilbert: evaluation

Transcript context

…Absolutely. You would have a lot more costs, like player development and stadiums. Anyway, that’s the few different ways to slice it. There’s the per game, there’s what’s the league worth, there’s what’s the individual team’s worth. I also wanted to try to figure out on a multiple basis, but how reasonable are these valuations? It’s a billion dollar valuation on these teams for anyone buying in. Again on average, I suspect some of them will go for more. What is the actual income statement look like? It’s impossible to know for sure because none of this is public and reported. It seems reasonable that they would do $70–$80 million in revenue. That’s after the BCCIs take. That’s inclusive of the local revenue. So think about a business that’s doing $70–$80 million top line. The salary cap is $17 million. You’re not paying any stadium, and you’re only debt service is if you are still paying a franchise fee back to the BCCI, you have almost no cost in this business. As you’re comparing business dynamics here versus other leagues, and particularly the NFL, on the one hand you’ve got this albatross, if you will, of the BCCI taking 50% of central revenue.…

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