Mike Brown Spends $200 Million Cash

[HoosierCat]

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.

[COB]

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.

"Write the man a check, Smithers.

/twirls thumbs/

Excellent."

[BengalByTheBay]

Damn, I wish I could play monopoly like this...

[HoosierCat]

Statement issued by the Bengals today:

The sale of the minority ownership stake in the Cincinnati Bengals that had been held by the estate of former shareholder Austin E. “Dutch” Knowlton was completed Friday. The estate of Mr. Knowlton had previously reached terms to sell its shares to investors in New York, but through a right to match such terms, ownership of the Cincinnati Bengals will remain with the existing ownership group. This transaction solidifies the local ownership of the Cincinnati Bengals, with the Brown family continuing to hold the controlling interest.

The Bengals have been locally owned since the Club’s inception in the mid-1960s and, as a result, have enjoyed long-term stability. The Club’s football operations will not be affected by the transaction and no further or carry-on transactions are contemplated.

“We are proud to be the owners of the NFL’s Cincinnati franchise,” said Bengals President Mike Brown, speaking on behalf of the Brown family. “We are committed to steps that will continue the Bengals as an asset for Greater Cincinnati.”

/>http://www.bengals.com/news/article-1/Statement-from-the-Bengals/f805988d-af6b-45cf-a94b-c4584c9cd3f8

[ArmyBengal]

And now on PFT they are questioning why he had to say they are "committed" to staying in Cincinnati.

Implying the thought of leaving must also be a consideration.

Whatever...