Oak View Group Raises $100 Million to Pursue “Huge Bets”

Oak View Group

Private equity firm Silver Lake Partners has invested $100 million for an undisclosed minority stake in Oak View Group (OVG), the entertainment and sports facilities company founded by Irving Azoff/Tim Leiweke. Oak View Group, which develops venues and provides consulting services, raised the capital to pursue “huge bets” outside of sports (i.e. music venue in Austin) and to expand internationally (see: Europe, Asia). Currently 27 stadiums and arenas use OVG for booking, sponsorship or security services; though Leiweke envisions adding 6-8 more before the end of 2018. The company acknowledges it’s “going through a massive growth spurt”, but insists it’s with good reason; the NFL, NBA and NHL are “at their healthiest levels ever” and concerts have become increasingly profitable.

Howie Long-Short: Rumors indicate that Silver Lake Partners and Jim Dolan, the Chairman of MSG, are working on a plan that would enable Dolan to eventually buy Madison Square Garden (and perhaps the Knicks and/or Rangers). As the story goes, Silver Lake Partners learned of the investment opportunity in OVG from Jim Dolan, “indicating Silver Lake has been speaking to Dolan.” While I’m not sure how Josh Kosman at the NY Post made the leap between the parties “speaking” and Silver Lake helping Dolan take MSG private, the connection between the two is apparent. Silver Lake Partners has taken an activist position in MSG (6.3%), while Dolan/MSG backs OVG.

Fan Marino: Oak View Group won the rights to redevelop Seattle’s Key Arena (they’re fully financing the deal, no public funding), to house the city’s new NHL franchise (while not yet announced, relocation or expansion is inevitable). Seattle may not be known as a hockey town, but within a 36-hour period in early May, 33,000 people issued deposits ($500 or $1,000) for the rights to purchase season tickets to an unnamed franchise that does not yet exist. As for the team name, OVG filed trademarks on these 13 ideas; Cougars, Eagles, Emeralds, Evergreens, Firebirds, Kraken, Rainiers, Renegades, Sea Lions, Seals, Sockeyes, Totems and Whales. If the goal is to sell merchandise, Kraken must be the choice.

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Author: John Wall Street

At the intersection of sports & finance.

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