National Basketball Association of the USA (NBA) is eyeing a share in revenue of its franchisees. All through fair means. By way of investments in minority shares of the entities which own the NBA clubs.
As the franchisee clubs’ values are soaring, the NBA is considering to create an investment arm for buying minority stakes of individual teams. The clubs have been informed about the plans, states a Bloomberg report.
NBA, in a memo to the teams, has stated that it was exploring the potential formation of “a new capital vehicle that could purchase passive, minority ownership interests across multiple NBA teams”. The business publication claims to have accessed the memo.
“This vehicle would provide additional liquidity for the sale of team ownership interests, including by providing access to a new pool of long-term investors that do not currently have access to team ownership opportunities,” the league has stated.
The NBA is seeking feedback from club owners to gauge their interest in selling stakes to the proposed investment vehicle. “The intent of this inquiry is to provide the committee and the league office with a general sense of the initial level of potential interest across the league in pursuing such a program,” the memo reads.