![]() ![]() ![]() Fernyhough estimates most of the stakes sold in NBA teams is for growth capital, allowing clubs to expand franchises, including upgrades to facilitates. Private firms make money on the funds by collecting management and incentive fees. RedBird, run by former Goldman Sachs executive Gerry Cardinale, made a splash with its $750 million investment in Fenway Sports Group. In addition, Ares Management Corporation invested $150 million in MLS franchise Inter Miami CF. PitchBook estimates Arctos raised roughly $3 billion to buy stakes in sports clubs, including NBA and NHL teams, as well as in the Fenway Sports Group, which owns the MLB Boston Red Sox and NHL Pittsburgh Penguins.ĭyal, once a division of Neuberger Berman Group, took a minority stake in the Atlanta Hawks. "You just have to make sure it's done at the right price." "NBA teams are trading at more expensive valuation because they are expecting to grow more over the next decade or so," Fernyhough said. Using that valuation, Arctos' shares in the Warriors are worth more than $700 million. ![]() Reports have Arctos taking a 13% stake in the Warriors, a franchise valued at $5.6 billion, according to Forbes. NBA teams, including the Golden State Warriors, Sacramento Kings, and San Antonio Spurs, sold stakes to private equity firms in 2021. And the NBA, by the nature of their product, is perfectly suited for that." So, it's easy to see a Madrid versus the New York Knicks. "And eventually," Lencheski added, "within the next 20 years, you'll have supersonic travel, which will allow an NBA team to travel within three hours anywhere in the world. "The NBA has a clear, more straightforward, and well-defined path to a global consumer than just about every other major league that's stick and ball related," he said. "I think there are a lot of reasons to be bullish on the NBA," he added.Ĭhris Lencheski, chairman of private equity consulting company Phoenicia, agrees. The WNBA will use those funds to grow the women's game.įactoring in the established global footprint and "younger fans on average," Fernyhough called buying minority stakes in NBA clubs a "gigantic" opportunity. In addition, the league's WNBA operation lured a $75 million raise last week that a source told CNBC's Kevin Stankiewicz values the league at $1 billion. The league is targeting India's massive population of more than one billion, too. Friction remains from a 2019 dispute involving team executive Daryl Morey, but NBA China is still operating, and games are streaming on Tencent. In 2019, the NBA announced the Basketball Africa League, run by its NBA Africa entity. ![]()
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