Time may tell that David Tepper got a steal in Charlotte

AP

The timeline was curious, even if it was entirely coincidental.

On Monday, the Supreme Court opened the door for nationwide sports betting. Immediately, Dallas Mavericks owner Mark Cuban proclaimed that the value of each franchise in the four major sports leagues would double. Within a day, David Tepper put pen to paper on a purchase agreement that will result in payment of $2.275 billion for the Carolina Panthers.

Yes, only $2.275 billion. A full $225 million short of one prominent estimate of $2.5 billion.

On one hand, maybe someone else would have shown up and offered considerably more, now that sports gambling can happen in the 49 states other than Nevada. On the other hand, maybe the purchase price already reflected the likelihood that, one way or the other, gambling was coming.

Ultimately, and as we explained in December when dismissing the speculation about what the price will be, every asset is worth whatever someone will pay for it. When it comes to NFL teams, there’s an asterisk arising from the reality that the rest of the club will have to be willing to welcome the new owner in.

Regardless, it feels like Tepper got a steal, especially if gambling generates the kind of revenue that will drive up the value of all NFL teams. And if Tepper is purchasing all of it himself, he possibly will be able to eventual sell half the equity, make all or most of the purchase price back, and continue to control the franchise.

12 responses to “Time may tell that David Tepper got a steal in Charlotte

  1. NFL teams won’t be worth a bag of dirt the way they are ruining the league and alienating their fan base. The time is very ripe for a new league to bring back real and simple football.

  2. Really? I’m not going to feel bad for Jerry Richardson for missing out on a few million. I think him, his kids, grandkids and great-grandkids will have enough money for all of their lives with 2.2 billion plus whatever they already had.

  3. Yes, and I’m sure pro sports franchise owner Mark Cuban is being completely honest and unbiased when he says that pro sports franchises will double in value.

  4. They aren’t worth that much. I’ve spent the majority of the last 3 decades in NC. Before the Panthers everyone was Redskins fans. They still mostly are.

  5. Any team is worth exactly what someone is willing to pay. Except the Cowboys. They will never be worth more than a used Kleenex.

  6. tylawspick6 says:
    May 17, 2018 at 12:14 pm
    how is it a steal? ratings are tumbling and that is a mickey mouse franchise anyway
    ____________________________________________

    First, do you ever have anything coherent to say? NFL Franchises have steadily increased in value based on simple economics rule #1: supply and demand theory. It is guaranteed to rise and if by “Mickey Mouse” you mean it is a Sell Out for every game; then Yes. I am not a Panthers fan, but it would not matter what team we are talking about. Revenue is up… you can’t base your understanding on ratings because it is no longer tracked as in the past. Unlike standard network broadcasting, internet and other broadcasts are increasing. As for advertisers… sure they lost Papa Johns, but Pizza Hut came in much higher. The NFL is here to stay and being an owner is a pretty exclusive billionaires club which will always have them overpaying. Again, economics… the Franchise is worth what someone is willing to pay for it.

  7. Well, I’m not a fan of the Carolina organization at all, and if any team would be sold below market value it wouldn’t surprise me to see it be them. But still, when I saw how much this jackwagon bought them for I was a little surprised, thinking “wow, that’s how much teams and cities are paying for new stadiums these days… how can that be a decent price for an entire organization?”

    And I’m still wondering about it. There must have been some desperation involved. From what I’ve read there are still a bunch of investigations going on regarding what happened under previous ownership, so the cost of those headaches must have been baked into the price. only thing I can figure.

  8. Dennis Carson says:
    May 17, 2018 at 11:50 am
    Really? I’m not going to feel bad for Jerry Richardson for missing out on a few million. I think him, his kids, grandkids and great-grandkids will have enough money for all of their lives with 2.2 billion plus whatever they already had
    _______________________________________

    Yeahhhh……..

    That’s not exactly how investments work – you know that, right? Because they invested some amount of money up front, then got some amount of income over the years, factor in time value of money, then look at what they sold it for…

    I bet you’re a member of a labor union or something, right? Or maybe in the healthcare field? Such a simplistic view of high finance…

    No wonder so many people hate Trump. They literally have NO understanding of the enormity of what he was able to accomplish in life.

    Hell in a handbasket…

  9. ^ actually that is how investments work, JR paid 200 million which is about 330 Million in today’s dollars, then sold for 2.2 Billion, I bet you’re not an investor are you? How much profit has the team generated versus operating expenses is hard to quantify but the Panther have averaged 350 million in revenues, probably a profit of around 40-50 million

  10. “Before the Panthers everyone was Redskins fans. They still mostly are.”
    ——————————————————————–

    Sure, Jan.

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