Goldman’s Pitch to Rich Clients: Hey, Buy a Piece of This Sports Team!

livemint.com:

Goldman Sachs is preparing to offer wealthy clients more access to a unique investment: the chance to own a piece of a private sports team. The bank is creating a “sports franchise" unit within its investment banking division that will combine sports M&A with sports financing. A top goal is to work with asset and wealth management to pitch wealthy clients on investing in teams, stadiums and other flashy deals.

Goldman declined to say which teams its clients might be able to invest in. The bank has worked on deals across the U.S. and internationally, including the sales of Chelsea Football Club, Formula One and a minority stake in the Tennessee Titans football team.

Minor-league teams, often considered a riskier investment, will also be on the table. In a high-rate world, there are lots of easy ways to get steady returns, but owning a stake in a team is about more than just money. Some investors are drawn to a team for nostalgia or passion, the same way art investors can gravitate to a painting.

Also appealing: the chance to sit front row at the next game. Goldman’s offering will involve pitching clients on the chance to own a slice of a team or in some cases to buy an entire team. One big draw about owning a team: Supply is limited.

“These things are episodic and monopolistic," said Greg Carey, who will co-lead the new Goldman team. “People have to die or get in trouble." Teams are already a popular status symbol for those who are not just rich but also famous. The billionaire hedge-fund manager Steve Cohen has plowed his financial acumen into the New York Mets.