Robert Reif Quoted in Article, “Karmanos Finds Investors, Selling 8% Canes Stake”Triangle Business Journal September 9, 2011
Robert Reif, Co-Chair of the Firm's Corporate Services practice, Member of the Health Care and Life Sciences practice, and Managing Shareholder of the firm's Washington, DC, office, was quoted in an article titled "Karmanos Finds Investors, Selling 8% Canes Stake."
Following is an excerpt:
Carolina Hurricanes owner Pete Karmanos says he has secured a group of a half-dozen individuals to invest more than $20 million in the team in exchange for a collective 8 percent ownership stake. Karmanos says the investors must gain approval from the National Hockey League and finish legal paperwork before he will reveal their identities.
A consultant hired by Karmanos values the team at $240 million, which is significantly more than the $162 million value estimated by Forbes magazine in December.
Typically, owners of professional sports franchises are not seeking the greatest financial return on investment, says Robert Reif. "They do it because they are really interested in the team." That includes visits to the locker room, parties with the team and just a higher level of fandom.
Karmanos also offered such perks, including travel with him to four road games during a season and business cards with "minority owner" title. "It's all of those intangibles," Reif says. "That's what sports investing is really all about. It's not a return on investment."
Regardless of numbers placed by one entity or another, the true value is in what someone is willing to pay for it as is the case with any asset, says Reif. "Basically, it comes down to what would a willing buyer pay," he says.