Anschutz puts AEG up for sale

[ensco]

Wow

http://www.mlssoccer.com/news/article/2012/09/19/galaxy-could-get-new-owner-first-time-club-history

[Oldtimer]

Selling AEG is like selling ML$E. It's a huge transaction.

I guess Anschutz is retiring.

[bigredone]

Becks contract is for one more season I think. Could Beck spice be the next owner?

[mdc 77]

Selling AEG is so much bigger then MLSE, like comparing a dollar store to wallmart.

[DangerRed]

This is a HUGE story for the MLS, makes MLSE sale look like buying a pack of gum. AEG is central to the league's history, it's power structure and therefore its future. This could change every rule in the book.

[narduch]

With the recent MLSE sale, and now this, I wonder if both companies know something about a decline in sports revenues that the rest of the public and media aren't aware of.

AEG is huge. Although they are big in the concert business too.

Beckham wouldn't have the coin to buy an AEG.

[Oldtimer]

This is a HUGE story for the MLS, makes MLSE sale look like buying a pack of gum. AEG is central to the league's history, it's power structure and therefore its future. This could change every rule in the book.

Well said. You almost couldn't overstate what this means for MLS, it's huge. It's also significant for the NHL and the NBA. As well, as narduch noted, AEG is one of the biggest concert promoters in the U.S.

[Beach_Red]

With the recent MLSE sale, and now this, I wonder if both companies know something about a decline in sports revenues that the rest of the public and media aren't aware of.

AEG is huge. Although they are big in the concert business too.

Beckham wouldn't have the coin to buy an AEG.

It will be interesting to see if this one also gets interest from media companies. The shift from gate reciepts to 'content' revenue.

[narduch]

It will be interesting to see if this one also gets interest from media companies. The shift from gate reciepts to 'content' revenue.

It pretty much has to. Who else can really afford AEG?

[ensco]

Doubt it's a media buyer. It's more of a real estate play than a media company. No content provider has to own the Galaxy and the Kings.

There a bunch of REITs (real estate investment trusts, publicly traded vehicles) that could be interested. Depends on what the cash flow off the buildings is. There are also developers who might bite. Sports arenas are a tricky business where lots of people have had their heads handed to them. Remember the numbers on Skydome? Sold for 5% of what it cost to build.

As for the Kings, they are selling out. How long will that last for?

It's bad for MLS. You can't replace successful franchise operators easily.

[pdogg]

With the recent MLSE sale, and now this, I wonder if both companies know something about a decline in sports revenues that the rest of the public and media aren't aware of.

When I first heard the news I thought it was prudent move. LA Galaxy are very popular now, but could that wane if the likes of Donovan, Keane and Becks aren't around in two years? How likely are the LA Kings to repeat as Stanley Cup Champions or go deep in the playoffs over the next few years?

The amount of goodwill around both these teams is extremely high and there is more to lose than gain by holding onto them. Sell at (or near) the top and move onto something else with better return potential. But then I found out about the rest of AEG and tossed it off as a coincidence.

[bones]

Selling AEG is so much bigger then MLSE, like comparing a dollar store to wallmart.

In what universe?

"The Anschutz Co. announced on Tuesday night that it will seek a buyer for AEG, the subsidiary that counts the Galaxy among its global sports and entertainment empire that also includes the Home Depot Center, downtown LA’s Staples Center and a 50 percent stake in one of its tenants, the NHL’s Los Angeles Kings."

1 top 3 valued MLS team, 1 MLS stadium, 1 hockey arena and 50% of an NHL team. vs
1 MLS team, no MLS stadium, 1 hockey arena, a top 3 valued NHL team + 1 NBA team + 1 AHL team + other developed/managed properties...

I think MLSE is way ahead on paper.

[Whoop]

Isn't this all a play for a NFL team in LA?

[ensco]

In what universe?

"The Anschutz Co. announced on Tuesday night that it will seek a buyer for AEG, the subsidiary that counts the Galaxy among its global sports and entertainment empire that also includes the Home Depot Center, downtown LA’s Staples Center and a 50 percent stake in one of its tenants, the NHL’s Los Angeles Kings."

1 top 3 valued MLS team, 1 MLS stadium, 1 hockey arena and 50% of an NHL team. vs
1 MLS team, no MLS stadium, 1 hockey arena, a top 3 valued NHL team + 1 NBA team + 1 AHL team + other developed/managed properties...

I think MLSE is way ahead on paper.

The Leafs and Raptors and TFC combined might be worth a billion dollars more than the Kings and Galaxy.

Yes, unless AEG's arena management business is worth a billion dollars (hard to imagine), MLSE is far bigger than AEG.

[tfcleeds]

In what universe?"The Anschutz Co. announced on Tuesday night that it will seek a buyer for AEG, the subsidiary that counts the Galaxy among its global sports and entertainment empire that also includes the Home Depot Center, downtown LA’s Staples Center and a 50 percent stake in one of its tenants, the NHL’s Los Angeles Kings."1 top 3 valued MLS team, 1 MLS stadium, 1 hockey arena and 50% of an NHL team. vs1 MLS team, no MLS stadium, 1 hockey arena, a top 3 valued NHL team + 1 NBA team + 1 AHL team + other developed/managed properties...I think MLSE is way ahead on paper.You forgot AEG's concert business, their European holdings, etc. They are the largest sports and entertainment group in the world.

[Whoop]

As Greg puts it, if you include their European holdings, AEG is WAY bigger than MLSE. Even then AEG owns and operates several more facilities in NA.

And in the live entertainment industry they're only 2nd to LiveNation in NA.

[Carts]

The Leafs and Raptors and TFC combined might be worth a billion dollars more than the Kings and Galaxy.

Yes, unless AEG's arena management business is worth a billion dollars (hard to imagine), MLSE is far bigger than AEG.

AEG is massive... WAY bigger than you realize... Anschultz himself has a net worth of $7-BILLION dollars...

[Oldtimer]

You forgot AEG's concert business, their European holdings, etc. They are the largest sports and entertainment group in the world.

AEG is much bigger than just the Kings, Galaxy, and Lakers. They are just a small part of their holdings.

ML$E has nothing equivalent to AEG. Their condo development and media holdings are small potatoes compared to AEG's non-sports holdings.

[Oldtimer]

AEG is massive... WAY bigger than you realize... Anschultz himself has a net worth of $7-BILLION dollars...

He could buy a couple of ML$E's and not feel it.

[tfcleeds]

^Too bad he's getting out of the business apparently...maybe with him as owner, Toronto teams could win for a change.

[Blowing Bubbles]

LOL @ saying MLSE is bigger than AEG ...... they're going to be sold for at least double what MLSE sold for. if not triple.

[ensco]

Anschutz is way bigger than AEG, but that's not the question.

I would be happy with a friendly wager of a pint with anyone on this. I say AEG trades at a price (or an implied price, if sold in pieces or via some component of public spinoff) less than USD $2.1 billion.

[DangerRed]

In what universe?

"The Anschutz Co. announced on Tuesday night that it will seek a buyer for AEG, the subsidiary that counts the Galaxy among its global sports and entertainment empire that also includes the Home Depot Center, downtown LA’s Staples Center and a 50 percent stake in one of its tenants, the NHL’s Los Angeles Kings."

1 top 3 valued MLS team, 1 MLS stadium, 1 hockey arena and 50% of an NHL team. vs
1 MLS team, no MLS stadium, 1 hockey arena, a top 3 valued NHL team + 1 NBA team + 1 AHL team + other developed/managed properties...

I think MLSE is way ahead on paper.

You kidding? Come on, at least read the wikipedia entry before you post something so silly.

[bones]

You kidding? Come on, at least read the wikipedia entry before you post something so silly.

Sorry I read it as they're selling the "subsidiary" part of AEG that ....

My bad.

Wiki? never!

[Miko]

Yup. NFL rules state that teams must be owned by individuals not corporations. With the deal for Farmer's Field pretty much in place at LA Live, all that's left to do is find an owner.

Rumour is that Anschutz is doing this so that he can buy the next available team and build a legacy for his kids the same way that Jerry Jones has done with the Cowboys.


Hate to say this as a Bills fan but it will probably be Buffalo. There is no concrete plan to keep the Bills in Buffalo and the lease is done after next year. Despite being worth $850 Million according to Forbes, we've seen, in the case of the Dodgers, that LA will overpay for sports franchises.

[A Stick]

Yup. NFL rules state that teams must be owned by individuals not corporations. With the deal for Farmer's Field pretty much in place at LA Live, all that's left to do is find an owner.

Rumour is that Anschutz is doing this so that he can buy the next available team and build a legacy for his kids the same way that Jerry Jones has done with the Cowboys.


Hate to say this as a Bills fan but it will probably be Buffalo. There is no concrete plan to keep the Bills in Buffalo and the lease is done after next year. Despite being worth $850 Million according to Forbes, we've seen, in the case of the Dodgers, that LA will overpay for sports franchises.

Yup! I agree 100% Miko. This has NFL powerplay switch written all over it. BTW, Ralph Wilson was in hospital a couple of weeks ago. Bye Bye Bills!