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

[RealGM Wiretap]

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]

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.

[njknicks]

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]

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.