Continuing from my post yesterday on the meaning of Jay-Z’s ownership/investment in the NFL, the question of why he invested remains.
Why Did Jay-Z Invest?
According to a report conducted by Chicago Partners, an economics consulting firm, NFL owners ROI (return on investment) tends to be greater than any other U.S. investment, including the S&P 500. The annual revenue of each NFL team is nine figures or more, so owners likely make at least eight figures a year from NFL ownership alone. So overall, this move by Jay-Z is him continuing to diversity his investment portfolio to solidify his billionaire status.
What about non-financial reasons? He is already a billionaire after all.
As a majority or minority investor/owner, Jay would have not only economic, but control rights in the NFL, which I posted about yesterday. Economic rights include things like dividend payments and liquidation preferences if he ever wanted to sell his ownership interests at a profit. However, I think the control rights are where he has his attention. Those include a seat on the Executive Committee with the other billionaire NFL owners who have the authority to replace current commissioner Roger Goodell. 👀👀💅🏾 Jay would also have the authority to stall or stop Executive Committee action, change rules affecting NFL player conduct, sit on committees impacting NFL media and entertainment and renegotiate the CBA (Collective Bargaining Agreement) with the NFL Player’s Association. Perhaps this is why Jay declined to perform in the Super Bowl, because he was set on owning a seat on the planning committee? Let’s wait and see. #venturecapital #business #businessowner #businesswoman #entrepreneur #sports #blackgirlmagic #blackentertainment #music #technology #lawyer #law #socialcommentary