The $725 Million Entertainment Company Built By LeBron James & Maverick Carter

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Hey Friends,

I don’t typically write about the same athlete two days in a row, but then again, LeBron James isn’t the average athlete, especially when it comes to business.

The SpringHill Company, an entertainment & production company founded by LeBron James and his business partner Maverick Carter, announced yesterday that a group of investors was acquiring a “significant” minority stake in the company.

The investment group was led by New York-based private equity firm RedBird Capital Partners and included Boston Red Sox & Liverpool owner Fenway Sports Group, apparel giant Nike, and “Fortnite” maker Epic Games.

The deal reportedly values The SpringHill Company at $725 million and Maverick Carter (CEO) & LeBron James (Chairman) will still maintain a controlling interest.

Here’s a summary of The SpringHill Company that I wrote a few months back:

But outside of the investor group and valuation, few financial details were given.

Still, rumors are circulating that RedBird Capital, Fenway Sports Group, Nike, and Epic Games, ended up acquiring about half of The SpringHill Company and injected nine figures of capital into the business.

The plan is to use that capital to produce more content, invest in new intellectual property, build an in-house production arm, and even potentially acquire other firms.

This deal makes sense for a few different reasons.

Sure, Nike is an obvious partner. They have a deep-rooted connection to the storytelling behind today’s greatest athletes. That partnership makes sense. But I also think people are underestimating the inclusion of RedBird Capital, Fenway Sports Group, and Epic Games.

As cable subscriptions continue to decline and we move closer to a world fixated on streaming services, content production has and will continue to become an extremely lucrative business.

For example, Netflix spent more than $10 million per episode on “The Crown,” Apple TV+ is paying $15 million per episode of “The Morning Show,” and Disney+ is spending roughly $25 million per episode of “WandaVision” and “The Falcon and the Winter Soldier.”

The space already seems crowded, but as legacy media companies continue to transition to a streaming-dominant model, the demand for premium, IP-based content will only rise.

And with a low existing supply, the price for that content will also increase.

The SpringHill Company Revenue

• 2020: ~$60 million

• 2021: ~$100 million (+67%)

LeBron and Maverick had capital, access, and distribution when they started SpringHill years ago, three of the main ingredients to building a success production company, but partnering with RedBird Capital, Fenway Sports Group, and Epic Games will multiply that.

Of course, the nine-figure capital infusion supercharges everything. Still, the access can’t be understated either. RedBird’s portfolio of investments includes YES Network, the regional sports network of the NY Yankees, the XFL, a relationship with the NFL, and even a European football club.

While Fenway Sports Group owns two of sports most iconic clubs, the Boston Red Sox and Liverpool FC, and video game & software developer Epic Games can help SpringHill moneitize their IP more effectively as we transition into the metaverse.

We’ll see what happens. I think the synergies that are being created, along with overall market demand & growth, will help skyrocket SpringHill’s valuation for years to come.

Regardless, it’s insanely impressive to watch LeBron, Maverick, and the SpringHill team continue to build one of the premier entertainment companies in the world.

I hope each of you has a great weekend, and I’ll talk to everyone tomorrow.

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Huddle Up is a daily letter that breaks down the business and money behind sports.

Join more than 48,000 professional athletes, business executives, and casual sports fans that receive it directly in their inbox each morning — it’s free.

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