Arctos scores a triple. The Arctos Sports Partners fund has reached an agreement to buy a 17% stake in the Sacramento Kings in a deal that values the NBA franchise at $ 1.84 billion, according Sporty.
This is the largest investment by a fund since the league relaxed its rules in January to allow institutional investors to participate. Plus, it’s the second NBA deal for Arctos, who acquired a stake from the Golden State Warriors in April.
The transaction is still subject to a vote by the league.. However, the NBA committee that reviews the transactions has sent a memorandum to the league’s owners recommending their approval.
Currently, The Kings are controlled by Chairman Vivek Ranadive, founder and former CEO of Tibco Software. In fact, the team has pioneered technology initiatives. It was the first team to join Twitter, in 2007 and the first to accept bitcoin into its arena in 2014. Additionally, Ranadive is on the committee. blockchain newly formed from the league and has prioritized innovation through the team’s stadium and its digital properties.
The operation has to be voted on by the members of the NBA
When Ranadive’s group bought the Kings in 2013, the club was valued at $ 535 million. The franchise has a dozen minority owners, so the operation will remove some of them.
The NBA’s change of mind on investors came after the needs of the pandemic, so that with these operations the hit of Covid-189, which forced playing behind closed doors, can be offset.
According to the NBA rules on private equity investors, a fund can buy up to 20% of a franchise and can own shares of up to five teams, but no team can have more than 30% of its capital in the hands of private investment funds .
Dyal HomeCourt Partners, part of Blue Owl Capital, bought almost 5% of the Kings earlier this year with a similar valuation.
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