The Golden State Warriors changed the game with their three-point shooting prowess, and now they’re pioneers in a different way. They may be the first NBA team to sell a stake to a private equity firm.
The Warriors are believed to be the first NBA team to sell to a private equity firm, but they won’t be the last.
- CVC Partners is in talks to buy part of the San Antonio Spurs, at around a $1.3 billion valuation.
- Last July, the NBA granted rights to Dyal Capital Partners to create a fund to buy minority stakes in teams.
In January, the NBA opened the door to private equity firms, allowing them to have up to 20% of any one team and invest in up to five teams. Teams can be up to 30% owned by private equity firms.
Though teams have historically been owned by individuals and small groups, the league changed its stance in part as a response to the COVID-19 pandemic after league revenues dropped 10% in the 2019-2020 season.