TLDR:
AC Milan owner Gerry Cardinale believes private equity investment has led to massively inflated sports team valuations, which he believes has been bad for the ecosystem. While private equity brings liquidity, Cardinale suggests there is a better way to approach investments in sports.
Cardinale criticizes the influx of institutional investment into sports, comparing it to the tech bubble. He believes that valuations have been inflated based on simplistic views about the sector’s future growth. However, he remains bullish about media rights valuations in the industry.
Cardinale believes that the soccer pyramid in Europe needs to be considered in order to maintain the competitive tension that makes the game appealing. He points to the NFL as a model for other leagues to follow.
Overall, while private equity brings liquidity to sports organizations, Cardinale suggests that there needs to be a more thoughtful approach to investments in the industry to avoid further inflating valuations.
Read the full article for more insights into Cardinale’s views on private equity investment in sports.
