MW Does Six Flags need more live events with celebrities? Travis Kelce could be the first step to getting there.

By Bill Peters

Deutsche Bank says amusement parks need to focus more on live events, possibly with pro athletes, and premium tickets for access to special events

Shares of Six Flags are down nearly 50% this year to date

An activist-investor campaign involving NFL star Travis Kelce could be the first step in making Six Flags Entertainment Corp. and other amusement parks bigger destinations for live, celebrity-packed events, Deutsche Bank says.

Deutsche Bank analyst Chris Woronka, in a research note, offered that take after activist investor Jana Partners on Tuesday said that it had joined forces with Kelce and two other executives to take a roughly 9% stake in the theme-park chain $(FUN)$, with the hopes of turning its fortunes around after struggles with declining visits during the first half of this year.

"Our view is that parks need to focus more on immersive experiences and live entertainment, potentially including events featuring various celebrities and/or professional sports players; to that end, the addition of Travis Kelce may be the leading edge of this thought," Woronka said in his note Thursday.

He added that Six Flags could try to introduce new higher-priced offerings for access to special events, and otherwise lean on its pass products to draw more sales.

Jana did not immediately respond to a request for comment.

In its announcement on Tuesday, Jana said it plans to engage with Six Flags' board and management "regarding opportunities to enhance shareholder value and improve the guest experience." According to the Wall Street Journal, Jana also "sees opportunities to modernize technology, refresh leadership and evaluate a potential sale as ways to boost the company's share price." Six Flags shares jumped on the news.

Kelce, for his part, said in Tuesday's announcement that he was a "lifelong Six Flags fan and grew up going to these parks with my family and friends."

He added: "The chance to help make Six Flags special for the next generation is one I couldn't pass up."

On Instagram, the Kansas City Chiefs tight end posted videos of himself as a child on rides at the Ohio amusement park Cedar Point, which is owned by Six Flags. In that post, he and his brother Jason, with whom he co-hosts a podcast, also talked about their frequent trips to Cedar Point while growing up.

As the Journal noted, during in a campaign in 2022 seeking change at Freshpet Inc. (FRPT), Jana brought on former NBA star Dwyane Wade and former MLB pitcher CC Sabathia as advisors. In 2019, pizza chain Papa John's International Inc. $(PZZA)$ announced that NBA legend Shaquille O'Neal would join its board and invest in some of its restaurants. O'Neal opted not to seek re-election to the board last year.

Michael Rueda, the head of the sports and entertainment practice at the law firm Withers, said recruiting a professional athlete into an activist campaign can help bring attention that lesser-known investors can't.

"They aren't necessarily the biggest investor in the group that is advocating for change or funding the change or growth plan," Rueda said in an interview. "But because of who they are and the influence that they have, they are front and center."

Over the summer, American Eagle Outfitters Inc. $(AEO)$ announced a limited-edition collaboration with Tru Kolors, Kelce's sportswear and lifestyle clothing line; American Eagle's stock rallied afterward. Elsewhere this year, Nike Inc. $(NKE)$ has teamed up with Kim Kardashian's clothing brand Skims, while E.l.f. Beauty Inc. $(ELF)$ bought Rhode, a beauty and skincare brand founded by influencer and model Hailey Bieber.

However, some industry observers have pointed out that celebrity partnerships don't always work, sometimes due to a lack of connection with the product. Rueda also suggested startups might a have great idea to attract the attention of a high-profile athlete, but not the execution.

He said it is important that professional athletes - some of whom are already planning out their follow-up career moves while still playing sports - take steps to protect their money if a company they invest in falters. It's also crucial to surround themselves with financial professionals, he added.

"The biggest red flag is when somebody is directing traffic for them who isn't a proper financial advisor," Rueda said.

Higher costs of living and rainy weather have led to a drop in visits at Six Flags' theme parks this year. However, in August, executives said July marked a "turning point" as the weather improved and people flocked to new rides.

Still, shares of the company are down nearly 50% this year to date. Other activist investors have swarmed, and the company has shaken up its leadership.

Last month, Land & Buildings Investment Management, another shareholder, reiterated its call for Six Flags to split off or sell its theme parks and other real estate. In August, Six Flags said that Richard Zimmerman would step down as its chief executive by the end of the year.

This month, Six Flags said it had appointed to its board Jonathan Brudnick, a partner at Sachem Head Capital, which holds a roughly 10% stake in the amusement-park operator, according to Deutsche Bank. Six Flags this month also said that Executive Chair Selim Bassoul and lead independent director Daniel Hanrahan would leave its board at the end of the year.

Deutsche Bank's Woronka said he believes it's possible that at least four shareholders that "could reasonably be considered activist in nature" own around 25% of Six Flags' stock.

"While the evolving shareholder base can't immediately solve certain secular challenges impacting many midpriced leisure businesses, we do believe the newer shareholders will be relentless in pushing for real change and faster execution on certain initiatives that should lead to meaningful deleveraging," he wrote.

-Bill Peters

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

October 23, 2025 17:23 ET (21:23 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.