HoosierCat Posted December 21, 2011 Report Share Posted December 21, 2011 Who says the old boy never puts out financially?The Brown Family is about to purchase the 30% of the NFL’s Cincinnati Bengals they do not own for $200 million from the Knowlton estate. Austin Knowlton, a founder of the team, died in 2003.Minority stakes of this size typically sell at 15% discounts because limited partners have little to say about how the team is run. Assuming that 15% discount, and the team’s $100 million of debt, the deal gives the Bengals an enterprise value of around $870 million. We valued the Bengals, which are run by team president Mike Brown, at $875 million recently, 25th out of the league’s 32 teams.Despite their dismal play on the gridiron in recent years, the Bengals are highly profitable because of the very favorable lease they have at Paul Brown Stadium. The Brown family is paying cash for the stake and the deal is expected to be finalized next week. The profitability of the Bengals should increase even further due to the NFL’s new collective bargaining agreement, and the new television deals the league has recently struck with ESPN and the broadcast networks. Quote Link to comment Share on other sites More sharing options...
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