Sports Business : NBA ’selects’ US fund to raise monies for teams via unique model

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Dyal Capital Partners, division of US investment management firm Neuberger Berman, is on a very unique mission now a days. The company is raising money for a fund that will invest in National Basketball Association (NBA) teams according to a report published in Bloomberg.

NBA Teams to raise monies via unique model

According to the report, Dyal Capital Partners has been ‘selected’ by all 30 teams of NBA to raise a fund that can buy minority stakes in the teams. With franchise values skyrocketing in recent years, the NBA wants to expand team ownershipsto include a broader array of investors. The high price of a typical team has made it harder for current investors to unload their stakes, so the league is getting more flexible. The report claims that the basketball association told managers last year that it could create an investment vehicle that would buy such minority shares.

Dyal, known as the biggest business of its kind to take stakes in private equity firms, was tapped by the NBA to acquire interests in teams, according to people familiar with the matter who asked not to be identified because the arrangement is private. The firm plans to hire sports investing professionals to aid the effort, but it’s unclear how much money it will seek to raise.

Dyal is known for taking stakes in private equity firms such as Silver Lake and Vista Equity Partners. The business — run by Michael Rees and Sean Ward

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“While we can’t comment on any particular investment vehicles, we are truly thrilled to have been selected by the NBA,” Rees said in a statement.
We’re grateful for the unanimous vote of the 30 team owners to give us this opportunity to be the only institutional investor eligible to pursue this strategy in partnership with the league.”
 
Dyal is known for taking stakes in private equity firms such as Silver Lake and Vista Equity Partners.
According to Forbes the price of an NBA team has soared in recent years with New York  Knicks being the most values NBA team @ the moment with $4.6 Billion valuation.
TOP 10 Most Valued Teams in NBA : FORBES
1) New York Knicks – $4.68 Billion
2) Los Angeles Lakers – $4.4 Billion
3) Golden Warriors    –  $4.3 Billion
4) Chicago Bulls         –  $3.3 Billion
5) Boston Celtics        – $3.1 Billion
6) Los Angeles Clippers – $2.6 Billion
7) Brooklyn Nets         $2.5 Billion
8) Houston Rockets   – $2.5 Billion
9) Dallas Mavericks   – $2.4 Billion
10) Toronto Raptors  – $2.1 Billion