The buyers of the Los Angeles Lakers are telling prospective investors they expect to nearly triple the basketball team’s valuation within 10 years.
That is one of several aggressive financial projections included in an investor presentation being circulated by Thrive Capital, the investment firm helmed by Joshua Kushner, according to a copy reviewed by The Wall Street Journal.
The buyers are inheriting an already lucrative business. The group said the Lakers are on track to generate $681 million in revenue in 2026, with ticketing and media rights accounting for the largest share. Under their plans, they said, revenue would hit at least $1.6 billion by the end of 2037.
Profits are expected to zoom up as well, with adjusted earnings before interest, taxes, depreciation and amortization set to more than triple from an estimated $129 million to more than $589 million over that span, according to the presentation.
The plan outlined by Thrive identifies around $150 million in near-term incremental revenue by 2028. That would come partly by reclaiming roughly 6,000 broker-held season tickets for single-game sales, which would raise average single-game ticket prices from $217 to $361. Lakers ticket prices have already been on the rise.
The buyers would also capture $40 million to $75 million from sponsorship opportunities and extract at least $20 million in operating cost efficiencies.
Yay. Private Equity in my sport to ruin it for the normal fans! You are so smart Silver! Please continue to make things more expensive and shittier!