Manatt's Sports Law Chair Discusses Investing in Sports Franchises

"Memphis Grizzlies Sold to Investor Group for $337 Million"
Daily Journal

November 2, 2012 - Manatt's Ronald Katz, chair of the firm's Sports Law Practice, spoke to the Daily Journal about investing in a sports franchise.

As reported by the Daily Journal, the Memphis Grizzlies professional basketball team was recently sold to an investor group formed by Stephen Kaplan, a principal and co-portfolio manager for Global Principal Group. Tech industry billionaire Robert Pera made the majority investment in the team, which sold for $337 million. Other notable investors included musician and performer Justin Timberlake and the wife of Denver Broncos quarterback Peyton Manning.

Katz told the publication that sports franchises are an "unusual asset" because owners don't typically make money until the team is sold again. He said purchases can be "irrational" and depend greatly on an individual's love for a team.

"If you own a franchise, though, you get to be part of an exclusive club, you get to see every game you want, and you get to meet some NBA players," he said. "It's a pretty sweet gig."