Private equity firm Arctos Sports Partners has agreed to purchase a 5 per cent stake in the Golden State Warriors, valuing the National Basketball Association (NBA) franchise at US$5.5 billion.
Once confirmed, the deal will be the first private equity investment into an NBA franchise since the league relaxation on ownership.
The league has changed its position on different investors due to the soaring franchise evaluations, making it increasingly difficult for minority owners to sell their shares.
It was reported in the beginning of the year that Arctos had been looking into purchasing minority stakes at a number of NBA teams.
It was also reported that Arctos had created a special purpose acquisition company (SPAC) to raise US$275 million to invest in a sports property or sports-adjacent business. Meanwhile, the Warriors were seeking a buyer for 5 per cent of the franchise, with a group of unidentified owners hoping to receive US$200 million.
At the start of the year, Sportico valued the Warriors at US$5.21 billion, second in the NBA, only behind the New York Knicks at US$5.42 billion.
Author: Jake Wilkin