On Location Experiences, a premium experiential hospitality business, has acquired PrimeSport, a global ticketing company with seats to the most desirable events. CEO John Collins said for his company to “create a better experience” it needed “inventory to the best events” (i.e. Final Four, Daytona 500); tickets that PrimeSport has direct access to. The combined entity maintains partnerships with 150+ sporting rights holders (i.e. NFL, NCAA) and expects to generate $550 million in revenue this year. Financial terms of the deal were not disclosed.
Howie Long-Short: NFL owners (32 Equity) maintain a 20% stake in On Location Experiences, with the balance owned by Bruin Capital Partners, Redbird Capital Partners and the publicly traded Carlysle Group (CG); the former owner of PrimeSport. Never heard of the Carlysle Group? They’re a private equity firm with more than $175 billion in AUM. Noteworthy investments include; Supreme and Beats Electronics. The company posted reported earnings of $44 million in Q3 ’17, driven by a 33% YOY increase in performance fees. The company also raised an additional $7.1 billion during the quarter.
Fan Marino: On Location paid the NFL $55 million for the rights to 5,000 Super Bowl tickets, per year, for the next 9 seasons; selling packages (including; lower bowl ticket, tailgate party and post-game field access) for $12,749. Packages to this season’s Super Bowl in Minneapolis range from $6,299 to $14,000. Somehow those prices seem reasonable; remember, they come with all-inclusive hospitality and entertainment. The lowest priced field-level club seat on StubHub is currently selling for $14,749 (pre-fees).
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