FRANCHISE SALE

The Seattle Seahawks, reigning Super Bowl Champions, have been on the market for two months — and the bidder list is starting to look like a Silicon Valley reunion. Some of the potential buyers that have expressed interest in the Seahawks include Meta founder, Mark Zuckerberg, and Apple CEO, Tim Cook (who recently announced he’s stepping down to become the EVP of Apple’s board).

The Numbers
The most recent NFL change-of-control sale was the Washington Commanders, which sold for $6.06 billion in 2o23. The Seahawks are widely expected to shatter that record, and the consensus is that it will be the largest franchise sale in NFL history.

Why It Matters
The scarcity of owning professional sports teams is what has all these billionaires reaching into the depths of their pockets. However, the price to acquire such high-valued franchises doesn’t scare them because they understand the returns. Vestible believes that the potential for returns on sports ownership should be accessible to all, and not just the billionaires who have the funds to get into the deal room.

🏈 Read more the Front Office Sports here

SPORTS INVESTING

In 2022, an NWSL expansion fee was $2 million. Last week, the Haslams paid $205 million for the Columbus slot. That’s a 10,150% increase in four years. So what happened?

According to CNBC Sport, the average NFL franchise is now worth $7.65 billion. The average NBA team sits at $5.52 billion — up 1,396% in 15 years, compared to 422% for the S&P 500. The returns have been so outsized that a new class of buyers has been priced out of the big leagues and shifted toward investing in NWSL, WNBA, MLS and other emerging leagues like Major League Cricket and Major League Pickleball.

The Trickle-Down Thesis
“Theres a lot of demand to get into the sports business but people can’t write checks to buy into the big four anymore,” said veteran sports banker Sal Galatioto. “When supply is fixed and demand goes up, people will bid more to win. The underlying economics are not as important.”

Why This Matters
This is the exact dynamic Vestible was built for. The window to get into sports ownership at accessible prices is narrowing fast — for now.

💰 Read the full CNBC Sport article here

⬆ Golden Tempo. After winning the 152nd running of the Kentucky Derby, Golden Tempo was seen doing what every champion should do after a major athletic achievement: he was taking a nap! You have to see this photo of Golden Tempo in his stable after the race. — Check It Out!

⬆ NFL Referees. The NFL and NFL Referees Association are moving toward a new deal. The NFL has offered 6.45% in annual growth rate in compensation over a 6-year deal, but the NFL Referees Association wants 10%. Commissioner Goodell said they are “taking the appropriate steps to be ready, but also keenly focused on negotiations.” — Fox Sports

⬆ Speed. In Georgia, NHRA driver Shawn Langdon broke the speed record by reaching 345mph. The previous record was 343mph set by Brittany Force. Langdon covered a 1,000-foot track in just 3.724 seconds. — AP

⬇ Phil Mickelson. The 6-time major winner and golfing legend has decided to back of the 2026 PGA Championship over a “family health matter.” Mickelson was set to make his return to golf after a long absence. — Read More Here

LEAGUE EXPANSION

The NBA’s Board of Governors formally approved expansion into Las Vegas and Seattle this week, officially opening up the bidding process for two new franchises. The league’s financial partner, PJT Partners, is now screening potential ownership groups ahead of a structured process.

Expanding Expansion Fees
Expansion fees are expected to land between $7 billion and $10 billion per franchise — which would make each new NBA team more expensive than the entire league was worth just 15 years ago. The average NBA team was valued at $369 million back in 2010. Today, the average is $5.52 billion. An expansion fee at $7B+ would make this instantly among the most expensive sports franchise transactions ever completed.

Whose buying?
Las Vegas is drawing more competitive interest, with multiple ownership groups already circling their name on the bidding sheet. Seattle’s bid is anchored by Samantha Holloway, the co-owner of NHL’s Seattle Kraken. Holloway has been the most active public candidate.

A final ownership vote is not expected until late 2026, with new teams potentially playing in the 2027-2028 season.

🏀 Read the full Bloomberg article here

FRANCHISE OWNERSHIP

In March, Tom Dundon paid $4.25 billion for the Portland Trail Blazers. Since then, all he’s done is cut cost. The Blazers didn’t give fans free t-shirts at home playoff games. Two-way contract players did not travel to road games. The team avoided hotel late-checkout fees. And Dundon reportedly won’t pay interim coach Tiago Splitter more than $1.5 million — well below the market rate for an NBA coach.

Meanwhile, on May 1st, Pickleball Inc. — the parent company of the PPA and Major League Pickleball — announced a $225 million structured investment led by Apollo Sports Capital. Dundon is the primary majority shareholder of Pickleball Inc. and contributed to the total.

“El Cheapo”
Dundon has now been nicknamed “El Cheapo” by Bill Simmons, but that has not stopped Dundon’s price-driven decision making. His “frugal-at-first” playbook is the exact same decision making he made with the Carolina Hurricanes when he purchased the franchise in 2018. Read the full Front Office Sports article here

🏟 Read the full Front Office Sports article here