Business Takeaways from the Greatness of The Patriots in Super Bowl

Business Takeaways from the Greatness of The Patriots

Posted on: February 12th, 2019

Business Takeaway From New England Patriots The New England Patriots have set a standard for sustained excellence. They have played in the Super Bowl 9 times over the past 19 years with Tom Brady as their QB and Bill Belichick as their head coach. In the 9 trips to the Super Bowl, they have won the Lombardi Trophy 6 times.

There are 32 teams in the NFL which gives each team roughly a 3.12% chance of getting to the Super Bowl. For the Pats to get to the Super Bowl 47% of the time is statistically speaking, 15 times the average team’s probability (3.12%). Moreover, the simple odds of winning a Super Bowl is 50%. For them to win 66% of the time is again nearly a 30% increase over the average probability. Given the sheer level of talent and overall competitiveness of the NFL, this track record is nothing short of astounding. Despite a desire from non-fans for them to fail, the Patriots keep rolling up the record books.

There are many theories advanced for this success, from the greatness of Brady to the genius of Belichick. This player or that player has a breakout season. While each reason has some validity, this level of sustained winning cannot be explained through single events or simple causation. There is more going on here that creates this success, a model that perpetuates winning in a very large scale.

This model gives them a sustainable differentiator in the market that allows them to come out on top. The model is part system, part management and part attitude. Their winning model can be applied to any business, especially growth companies seeking to become dominant in their field. Here are our top 4 Patriot takeaways, that can make your company stronger:

Design the Right system – the Pat’s don’t have the best players in all positions, but they have the best system within which these players thrive. The system elevates each player, optimizing their production. Players don’t make the team great per se. The system unlocks player performance, making the team great.
Use Best Practices – the Patriots front office is known for being highly professional and steeped in best practices. The run their football business like the highly complex business it is. They focus on talent, coaching, marketing, and consistent production on the playing field.
Cultivate Strong Management– the Patriots have consistently cultivated great in-house coaching talent. They have developed a learning environment for their young coaches that allow them to absorb knowledge and become leaders in their specialty.
Prepare a strong game plan – Belichick is a master tactician with a magical ability to exploit an opponent’s weakness, even when it appears, they have no vulnerabilities. This ability flows from his detail orientation and expertise in crafting comprehensive approaches to game strategy.

As new acquisition financing credit funds pivot to non-private equity sponsored deals, many lack experience with the asset class. Non-sponsored deals such as direct loans to companies or loans to independent sponsors making acquisitions are quite different from private equity backed deals and require a different thought process and engagement style from the lender.

During their underwriting processes, acquisition financing providers analyze probable performance projections for their proposed borrowers. The underwriter often toggles between a few scenarios to sensitize the growth variables leading to slower revenue and margin growth over time. The lender’s underwriting view is usually an extension of its credit intelligence and historical experience.

Mezzanine debt loans occupy the risky echelon beneath the bank but ahead of the equity in a capital structure. They are naturally subordinated to the bank loan via an intercreditor agreement wherein the senior lender retains the power to block their interest or force them to standstill.