In an interesting move, banking giant Goldman Sachs (NYSE: GS) is looking at launching a “sports franchise” unit within its investment banking division. This will combine sports mergers and acquisition deals with sports financing. According to a Wall Street Journal report, the bank is looking at pitching it to wealthy clients to invest in teams and stadiums.
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Goldman Sachs refused to comment on which teams its clients might be able to invest in, according to the report. The bank will offer its clients a stake in a sports team or the entire team. However, the supply of sports teams is limited.
The report quoted Greg Carey, who will co-lead the new Goldman team, as saying, “These things are episodic and monopolistic. People have to die or get in trouble.” This refers to the owners of sports teams usually being reluctant to sell unless they have to.
Analysts are cautiously optimistic about GS stock, with a Moderate Buy consensus rating based on 13 Buys and six Holds.
