Charles: Sports teams offer massive tax shields for private equity billionaires
Ian Charles · Ian Charles - Private Equity's New Rules (EP.431) · Feb 10, 2025 · at 49:57
Ian Charles, founding partner at Arctos Partners, explains why private equity leaders are disproportionately attracted to acquiring professional sports franchises.
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“Sports properties create a huge tax shield. They are not correlated with healthcare or tech or finance. You're not allowed to use a lot of leverage. So if you are a titan of private markets, You have a lot of levered exposure to all kinds of equity, and you have a lot of ordinary income. There is a really unique benefit to being a direct sports owner if you are coming from the finance industry.”
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