Welcome back to Power Lunch. We're entering a whole new age in the world of college sports. With the sky-high annual revenues for some of the top tier universities and the seven figure NIL deals, many of the best college athletes are signing. Teams are now being forced to find new ways to access cash and finance these operations. And some insiders believe that we are on the verge of having college teams selling stakes to private equity firms as a way to gain immediate capital access. But not everyone thinks ...

Market Structure & Investment Strategies - Public markets power the narrative, while private markets power the economy, prompting a re-evaluation of traditional 60/40 portfolios and the tools needed for better outcomes with less volatility [1] - Alternatives have historically benefited institutions, and there's a growing need to augment past strategies to cater to retirees globally [2] - The role of private capital is evolving as companies like Space X and Stripe stay private longer [2] - The distinction between public and private markets is shifting from risk to liquidity [5] - The traditional view of private markets as risky and volatile, and public markets as safe and liquid, is no longer accurate [6] Capital Expenditure (CapEx) & Financing - The high yield market has financed companies undergoing regulatory or technological changes over the past 30 years [9] - A massive CapEx boom is expected in the next ten years (by 2035), driven by data centers, sustainability, energy transition, and transmission lines [10] - 80-90% of the private credit market involves investment-grade counterparties and debt [11] - Private credit, particularly investment grade, is poised to have a significant impact, potentially larger than private equity in the last decade [14] - The CapEx cycle is concentrated in a few data and technology companies, raising questions about whether it masks the underlying economy driven by private companies [19] Economic Outlook & Inflation - Public market numbers beat consensus by 700 basis points (7%) in the second quarter, showing 11% versus 4% [20] - Credit portfolios show quality upgrades at a 3 to 1 ratio versus downgrades, indicating no widespread weakness [21] - Lingering inflation is evident, with companies finding it challenging to pass costs on to consumers [21][22][23] Investment Risks & Opportunities - There's a risk of over-investing in certain sectors, potentially leading to a misallocation of resources [24][25] - Investors should be wary of taking equity risk for a fixed rate of return, which could indicate a bubble [26] - The energy supply issue could limit growth, posing a challenge [29] - The lack of long-term investors is a concern for 10, 20, and 30-year infrastructure builds [30] Portfolio Allocation & Global Investment - Allocating 10-20% of a portfolio to alternatives has historically increased returns and reduced volatility [34] - The US remains the strongest, largest, and deepest market globally, with a robust economy, rule of law, banking system, creativity, and intellectual capital [47][48] - There's increased hedging of investments from overseas investors due to policy uncertainty and concerns about the Fed allowing inflation to run hot [41] - Europe's progress in energy transition and infrastructure development is slower than desired due to government oversight [42][43]

Alternative Asset Classes Overview - Explores the comparison of alternative asset classes (private equity, real estate, hedge funds, private credit, infrastructure, and commodities) with traditional investments [1] - Focuses on how plan administrators can incorporate alternative asset classes into retirement options [1]

Some of the world’s richest families are leaning more heavily on public markets with less exposure to private equity, a Goldman Sachs survey found https://t.co/rUj8cjBXpm ...

NFL Valuation Drivers - NFL values are rising due to predictable revenue streams, attracting private equity and private deals [2] - National media revenue contributes $12 billion to the $22 billion NFL revenue pie [3] - Stability from hard salary cap and cost containment allows for accurate forecasting of IBIDA for NFL teams [3] - Visibility of sports is attractive to corporate America for reaching customers, driving up values [5] Peak Valuation Concerns - Sports economists have been discussing peak valuations for 20 years, but values continue to rise [5] - Cable subscribers are declining due to the rise of streamers, impacting regional media deals [6] New Growth Opportunities - Mixed-use real estate development deals are a growing revenue stream for franchises [6][7] - Franchises aim to build mixed-use real estate developments to generate year-round revenue [6] - Ownership of professional sports includes real estate play, building up real estate around the venue [9] - Multi-use facilities allow venues to be used for various events, generating revenue throughout the year [10]

Who wants to buy an NFL team? Here’s the playbook PE firms are using to snap up franchises https://t.co/rgwBaGNKNL ...

NFL Team Valuations - The average NFL team is now worth $765 billion, an increase of nearly 18% compared to last year [1] - The Dallas Cowboys are the most valuable NFL team, worth $125 billion, nearly $2 billion more than the next most valuable team [1] - Private equity investment in the NFL has set a floor on valuations and added liquidity [1] - LP stakes are now coming in at almost control valuations due to the presence of private equity [1] Team Transactions - The Eagles set a record with an $83 billion valuation for a small piece, which was then topped by the 49ers at $86 billion [1] - The Bears are awaiting approval to sell a small piece at $89 billion [1] - The New York Giants are on the verge of selling a 15% stake to Julia Ko at over $10 billion valuation [1] - Investors are willing to pay close to control valuations because of the liquidity provided by private equity [1]

CNBC is out this morning with our official NFL valuations. The average team is now worth 7.65% billion. That's an increase of nearly 18% compared with last year.Right now, we want to take a look at the top five most valuable NFL teams. Coming in at the top once again, the Dallas Cowboys worth 12.5% billion. That's nearly $2 billion more than the next most valuable team.Rounding out the top five, you've got the LA Rams, the New York Giants, the Las Vegas Raiders and the New England Patriots. Joining us right ...

After a lull earlier this year, activity in mergers and acquisitions has picked up in India, led by multibillion dollar cross-border deals and the involvement of global private equity funds and local firms https://t.co/JDXyFf5emf ...

Investment Opportunity & Potential Risk - Private equity in 401(k) plans: potential risks and rewards [1]