Dyal Capital Partners, a division of US investment management firm Neuberger Berman, is assembling a fund to buy minority stakes in National Basketball Association (NBA) franchises, according to Bloomberg.
The industry outlet reports that Dyal will work in partnership with the North American basketball league to acquire interests in its teams, although precisely how much the firm is attempting to raise has not been disclosed.
Bloomberg added that Dyal, which claims to have US$23 billion in assets and has stakes in private equity firms such as Silver Lake, H.I.G Capital and Vista Equity Partners, plans to hire ‘sports investing professionals’ to support the process.
Michael Rees, a managing director and head of Dyal, told Bloomberg: “While we can’t comment on any particular investment vehicles, we are truly thrilled to have been selected by the NBA.
“We’re grateful for the unanimous vote of the 30 team owners to give us this opportunity to be the only institutional investor eligible to pursue this strategy in partnership with the league.”
Bloomberg’s report comes after NBA commissioner Adam Silver confirmed in December that the league was exploring the creation of an investment vehicle to buy minority shares in multiple teams.
NBA franchise valuations have skyrocketed in recent times, with Forbes’ 2020 list of team values suggesting that it would cost anywhere between US$1.3 billion and US$4.6 billion to buy a club in North America’s premier basketball competition.
However, those soaring valuations have made it difficult for minority owners to sell unwanted shares due to the high cost, while such stakes typically come with no say in how franchises are run.
The San Antonio Spurs are the latest NBA franchise looking to offload a minority share, according to Variety, although it is unknown which member of the team’s ownership group is looking to sell their stake.
Other US sports leagues have also been considering private equity. Major League Baseball (MLB) last year updated its bylaws to allow investment funds to acquire minority stakes in multiple teams.
Dyal Capital Partners, a division of US investment management firm Neuberger Berman, is assembling a fund to buy minority stakes in National Basketball Association (NBA) franchises, according to Bloomberg.
The industry outlet reports that Dyal will work in partnership with the North American basketball league to acquire interests in its teams, although precisely how much the firm is attempting to raise has not been disclosed.
Bloomberg added that Dyal, which claims to have US$23 billion in assets and has stakes in private equity firms such as Silver Lake, H.I.G Capital and Vista Equity Partners, plans to hire ‘sports investing professionals’ to support the process.
Michael Rees, a managing director and head of Dyal, told Bloomberg: “While we can’t comment on any particular investment vehicles, we are truly thrilled to have been selected by the NBA.
“We’re grateful for the unanimous vote of the 30 team owners to give us this opportunity to be the only institutional investor eligible to pursue this strategy in partnership with the league.”
Bloomberg’s report comes after NBA commissioner Adam Silver confirmed in December that the league was exploring the creation of an investment vehicle to buy minority shares in multiple teams.
NBA franchise valuations have skyrocketed in recent times, with Forbes’ 2020 list of team values suggesting that it would cost anywhere between US$1.3 billion and US$4.6 billion to buy a club in North America’s premier basketball competition.
However, those soaring valuations have made it difficult for minority owners to sell unwanted shares due to the high cost, while such stakes typically come with no say in how franchises are run.
The San Antonio Spurs are the latest NBA franchise looking to offload a minority share, according to Variety, although it is unknown which member of the team’s ownership group is looking to sell their stake.
Other US sports leagues have also been considering private equity. Major League Baseball (MLB) last year updated its bylaws to allow investment funds to acquire minority stakes in multiple teams.
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