Private Equity – Dyal Capital Partners Targets Stakes in NBA Teams

May 21, 2020 | News, Private Equity
https://dailyalts.com/wp-content/uploads/2020/05/5fe3d6424d51b10ff3d8992cc62c3e761c3dd6f85254784975267bdd9345_640.jpg

Barron’s is reporting that Dyal Capital Partners, a unit of Neuberger Berman, wants to raise $2 billion to buy minority interests of National Basketball Association teams. The NBA selected Dyal in April to form a fund to buy up minority stakes. Dyal Capital Partners has approval so far by the NBA ownership. All 30 team owners had to vote on that plan.

Dyal Capital Partners Looks for Limited Ownership Stakes

It has been increasingly difficult for minority investors to sell their interest in a team. Today the average valuation of an NBA team sits at $2.12 billion. The top valuation is $4.6 billion for the New York Knicks. A limited number of billionaires have an interest in owning a sports franchise. Finding a buyer can be challenging and time-consuming. The number of potential buyers with the liquidity to structure a deal that would pass the leagues review is even smaller

Partners at Dyal Capital Partners think there may be more interested sellers due to the COVID-19 pandemic. There have been discussions about when and how to reopen. Still, a sport that requires close proximity and physical contact for the entire game-opening back up to play before there is a virus is an enormous, if not impossible, challenge.

While private equity funds are not allowed by the NBA, there are a lot of private equity managers who have used their wealth to invest in the sport.

Finally, Barron’s pointed out that Tom Gores, founder of Platinum Equity owns the Detroit Pistons; Josh Harris, the co-founder of Apollo Global Management, owns the Philadelphia 76ers; Marc Lasry, teamed up with Wes Edens, founder of Fortress Investment Group to buy the Milwaukee Bucks.

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Alt Insights

May 21, 2020

Venture Capital: British Startup Offers Travel Jaunts on the Never-Never

Venture Capital: British Startup Offers Travel Jaunts on the Never-Never
Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2020/05/athlete-1840437_640.jpg
Artificial Intelligence: Global Agency to Use AI to Nab Doping Athletes
May 29, 2020     Artificial Intelligence, News

The World Anti-Doping Agency (WADA) has initiated four projects across Canada and Germany to identify doping athletes through the use of artificial intelligence. The agency understands the ethical questions surrounding…

https://dailyalts.com/wp-content/uploads/2020/05/Prupay-combined.jpg
FinTech: PruPay and PayPal Working on Text-based, Contactless Payments
May 29, 2020     FinTech, News

PruPay is a specialty fintech company that provides easy payment solutions for merchants and consumers. The U.S.-based company announced Thursday its collaboration with PayPal (NASDAQ: PYPL) for the launch of…

https://dailyalts.com/wp-content/uploads/2020/05/6506262731_3b7a3948e7_c.jpg
Digital Assets: Goldman Pans Bitcoin; Crypto Community Up in Arms
May 29, 2020     Digital Assets, News

Crypto fans have not taken kindly to a Goldman Sachs presentation that fired potshots at bitcoin. The offending presentation from Goldman Sachs (NYSE: GS) has sparked a raging controversy for…

https://dailyalts.com/wp-content/uploads/2020/05/Driverless-robots-combined.jpg
Venture Capital: Optimus Ride Driverless Cars in the U.S., and Cute Starship Robots in the U.K. Combat COVID
May 29, 2020     News, Venture Capital

Driverless vehicles and delivery robots are serving a crucial need for consumables during lockdowns and shelter-in-place restrictions. More importantly, because they are autonomous there’s no risk of a driver spreading…

Scroll to Top