NBA Could Allow Private Equity Firms To Buy Stakes In Multiple Teams

Moderators: BombsquadSammy, Domejandro, bwgood77

RealGM Wiretap
RealGM
Posts: 71,723
And1: 195
Joined: Mar 19, 2013

NBA Could Allow Private Equity Firms To Buy Stakes In Multiple Teams 

Post#1 » by RealGM Wiretap » Fri May 1, 2020 1:06 am

The NBA is considering creating an investment vehicle that would allow private equity firms to buy limited partnership stakes, including investments across multiple teams.


It has become increasingly difficult for owners to sell limited partnership stakes due to the increase in valuations of professional franchises.


Limited stakes frequently come without a board seat or any real influence on how the franchise is operated. There's typically what's referred to as an LP discount of 10 percent to 25 percent.


Major League Baseball changed its rules last year to allow investment funds to acquire limited partnership stakes in multiple clubs.

Via Scott Soshnick/Sportico

Cassius
RealGM
Posts: 11,925
And1: 1,816
Joined: Aug 19, 2005
Location: We won.
     

Re: NBA Could Allow Private Equity Firms To Buy Stakes In Multiple Teams 

Post#2 » by Cassius » Fri May 1, 2020 2:39 am

Spencer Dinwiddie needs to break quarantine just to drop a bag of flaming poo on Adam Silver's front porch. It was barely three months ago they tried to make him look like he's some naïve moron selling lottery tickets, now they're effectively doing the same thing.

This is not cultural appropriation, but when people bring it up, this is what they're talking about.
I_Like_Dirt wrote:The whole comparison to Kevin McHale is ridiculously close, imo... And that's without more hilarious aspects of the comparison, e.g. if Wally Sczerbiak were 7 feet tall with the slower reflexes that came with the additional height, he'd be Bargnani.
njknicks
Junior
Posts: 276
And1: 37
Joined: Sep 07, 2017

Re: NBA Could Allow Private Equity Firms To Buy Stakes In Multiple Teams 

Post#3 » by njknicks » Fri May 1, 2020 6:10 am

Agree that when it comes to players creatively maximizing their contracts / value -- the NBA is apprehensive ( case in point Spencer Dinwiddie bitcoin contract concept ).

But when it comes to owners, the league is receptive to ideas : i.e. current private equity stakes, investment to boost equity and team valuation.

Granted that this is a unique situation with the pandemic and the league losing significant revenue --- but the league should be receptive to all ideas ( players / ownership ideas alike ) to boost the value of individual contracts and team valuation.

Nonetheless -- Adam Silver has been a great commissioner, forward thinking : have no doubt the NBA will come out of this much better positioned and stronger as a brand going forward.
Cassius
RealGM
Posts: 11,925
And1: 1,816
Joined: Aug 19, 2005
Location: We won.
     

Re: NBA Could Allow Private Equity Firms To Buy Stakes In Multiple Teams 

Post#4 » by Cassius » Fri May 1, 2020 6:07 pm

njknicks wrote:Agree that when it comes to players creatively maximizing their contracts / value -- the NBA is apprehensive ( case in point Spencer Dinwiddie bitcoin contract concept ).

But when it comes to owners, the league is receptive to ideas : i.e. current private equity stakes, investment to boost equity and team valuation.

Granted that this is a unique situation with the pandemic and the league losing significant revenue --- but the league should be receptive to all ideas ( players / ownership ideas alike ) to boost the value of individual contracts and team valuation.

Nonetheless -- Adam Silver has been a great commissioner, forward thinking : have no doubt the NBA will come out of this much better positioned and stronger as a brand going forward.


Yes, Silver is overall a good commish. The only complaints I have are this and an interview he did where he insinuated that Masai caused the fracas with the police in the Finals.
I_Like_Dirt wrote:The whole comparison to Kevin McHale is ridiculously close, imo... And that's without more hilarious aspects of the comparison, e.g. if Wally Sczerbiak were 7 feet tall with the slower reflexes that came with the additional height, he'd be Bargnani.

Return to Wiretap Discussion