Photo: John Taggart/The Washington Post via Getty Im Offside Tavern in Chelsea was crowded for game seven of the World Series, but bartender Nick Costa noticed a group of patrons who seemed strangely “low energy” during the game. “There were a lot of pissed-off faces in that crowd,” said Costa, who also owns Offside.
Deadspin was, by all accounts, beloved, sustainable, and efficiently operated for years prior to Great Hill’s acquisition. Insiders at the company describe a turnkey operation that could have operated successfully for years to come.
“From the very beginning it seemed like [Spanfeller] thought we needed to be whipped into shape by someone older and richer than us,” said David Roth, Deadspin’s former editor-at-large. “It was like all we needed was a dose of Spanfeller, which was an approach from three internets ago.” But even the Deadspin alums who circulate that theory concede that it is almost certainly not true, and that while Thiel might be enjoying the organizational chaos, he is unlikely to be involved. A standard private-equity business model offers a simpler explanation. “I think Spanfeller’s a pawn,” said Eileen Appelbaum, author of Private Equity at Work: When Wall Street Manages Main Street and co-director of the Center for Economic and Policy Research.
MrJDWalsh Excellent work. Applicable to many other messes created by 'private equity.'
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