Equity Fund Has a Ball With Hoops

0

When the Harlem Globetrotters visit Staples Center on Feb. 27, the team won’t just be passing through town. Here’s a little known fact: It will actually be on a home stand … of sorts.

The iconic trick-shot makers and basketball clowns have been majority owned by Shamrock Capital Partners since the Burbank private equity fund purchased an 80 percent stake in the team five years ago.

Since then, Shamrock has sought to inject some life into a lagging franchise that went bankrupt in 1993 and was in its heyday before dunk artists like Julius Erving transformed pro hoops – stealing some of the Globetrotters’ flash in the process.

“When we were first looking at the opportunity five years ago, we saw a cherished brand with an 80-year history,” said Mike LaSalle, a Shamrock partner. “We saw a real opportunity.”

So with headliners like Meadowlark Lemon and Curly Neal long retired, what has Shamrock done?

For one, it’s introduced new elements to its show, including a penalty box for players pulling particularly outrageous stunts and a four-point shot 35 feet away from the basket. The show also is rescripted annually so fans won’t get bored, though one thing hasn’t changed: The Washington Generals still lose every game.

The innovation apparently has paid off. The team set box office records in 72 local markets last year, and is scheduled this year to make 274 domestic and 130 international appearances. (The Globetrotters are actually two or three teams that can play simultaneously in multiple locations.)

Shamrock also has reached sponsorship agreements with brands such as Spalding, Russell Athletic and Campbell’s Soup. And it has licensed the Globetrotters name for apparel, novelty items and even Halloween costumes. The result has been higher operating profit, but Shamrock isn’t heading for the exits.

“There are no plans to sell now,” said Globetrotters Chief Executive Kurt Schneider. “We are trying to return the brand to its rightful place in pop culture.”

No posts to display