Phighting Phillies: Private Equity Acquisition

Alpha Capital, a private equity firm, is considering acquiring the Philadelphia Phillies for $1.1B. The case explores the due diligence process, focusing on team valuation and investment viability. Key areas include revenue streams (ticket sales, concessions, merchandise, media rights, sponsorships), cost drivers (player salaries, front office, facilities), and potential synergies. The analysis involves financial modeling, market comparison, and consideration of management, execution ability, and industry-specific factors. The case challenges candidates to assess the deal’s profitability, identify growth opportunities, and evaluate risks in sports team ownership within a private equity context.