It's a difficult market on the financing side and sports has been touched by it like other sectors. With that said deals are still getting done. You have to pay attention to making sure the deals are structured correctly, they have tight covenants and they make sense.
NEW YORK (PRWEB) September 17, 2008
In this episode, entitled "The Buying and Selling of Sports Teams," Gordon Saint-Denis, Managing Director of CIT Communications, Media and Entertainment, Sports provides his perspective on the current sports franchises on the market. In commenting on how current market conditions may affect these transactions, Saint-Denis says, "It's a difficult market on the financing side and sports has been touched by it like other sectors. With that said deals are still getting done. You have to pay attention to making sure the deals are structured correctly, they have tight covenants and they make sense."
In commenting on what's needed to close the deal today he says, "The first thing we look for is the owner. Is the owner approvable based on league requirements, with respect to their net worth? Are they going to be living in the city where they are buying the franchise, or are they going to be an absentee owner? That's a little harder to approve. The league wants someone who is going to be committed to the franchise and be there. So we work closely with them to see if they are qualified from a league perspective, from a financial perspective, to make sure we are looking at something that will pass muster."
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CIT (NYSE: CIT) is a global commercial finance company that provides financial products and advisory services to more than one million customers in over 50 countries across 30 industries. A leader in middle market financing, CIT has more than $70 billion in managed assets and provides financial solutions for more than half of the Fortune 1000. A member of the S&P 500 and Fortune 500, it maintains leading positions in asset-based, cash flow and Small Business Administration lending, equipment leasing, vendor financing and factoring. The CIT brand platform, Capital Redefined, articulates its value proposition of providing its customers with the relationship, intellectual and financial capital to yield infinite possibilities. Founded in 1908, CIT is celebrating its Centennial throughout 2008. http://www.cit.com