Alan Waxman on the Deals Behind Sixth Street's Sports Empire | The Deal

Why It Matters

Sixth Street’s culturally driven, patient‑capital model shows how institutional investors can unlock value in elite sports franchises, potentially redefining valuations and accelerating global expansion of leagues like the NFL and NBA.

Key Takeaways

• Sixth Street values culture, values, purpose alignment in sports deals.
• Minority stake in Patriots secured via personal connections, not competitive bidding.
• Institutional capital in NFL still limited; real‑estate adjacency needed for valuations.
• Patient capital model suits sports assets better than traditional private‑equity timelines.
• International expansion seen as next growth driver for NFL and NBA franchises.

Summary

Alan Waxman, co‑founder and CEO of Sixth Street Partners, sat down with Bloomberg’s Jason Kelly and Alex Rodriguez to discuss the firm’s growing sports‑investment empire, from a minority stake in the New England Patriots to holdings in the San Antonio Spurs, Boston Celtics, Real Madrid and Barcelona. The conversation centered on how Sixth Street’s flexible, culture‑first ethos drives its entry into elite leagues traditionally resistant to institutional capital. Waxman explained that Sixth Street builds “investor‑first” vehicles sized to specific opportunities, avoiding the pressure of traditional private‑equity exit timelines. This patient‑capital approach, combined with a relentless focus on cultural alignment and clarity of purpose, allowed the firm to secure the Patriots stake through a personal introduction by the NFL’s CFO, rather than a competitive auction. He highlighted the NFL’s limited openness to private equity, noting that future valuations will hinge on substantial real‑estate and infrastructure synergies. Memorable moments included Waxman’s description of the Kraft family meeting as “instantaneously feeling like family,” and his anecdote about cold‑calling the Spurs during COVID‑19 to clinch a deal. He likened owning an NFL franchise to “one of 32 beachfront properties,” emphasizing scarcity, cash‑flow stability, and the league’s global expansion potential, especially as international games and media rights mature. The interview signals a broader shift: institutional investors are now entering a once‑closed sports arena, but success will depend on patient capital, cultural fit, and the ability to unlock ancillary real‑estate value. As media deals renegotiate and global fan bases expand, the economics of sports franchises could accelerate, reshaping valuation benchmarks and attracting more sophisticated capital.

Original Description

Alex Rodriguez and Jason Kelly talk with Sixth Street’s Alan Waxman about taking a stake in the New England Patriots, international growth opportunities in the NBA and why a historic NWSL expansion fee paid off.

#Sports #Business #Podcast

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