Atlanta Hawks valued at $2bn as Dyal closes in on minority stake

Dec 22, 2021 | News

The National Basketball Association’s (NBA) Atlanta Hawks are close to offloading a minority stake to US private equity firm Dyal HomeCourt Partners, according to Sportico.

While it is unclear how big Dyal’s share would be, the sports business outlet reports that the investment would value the team at around $2bn.

The report says that some of the Hawks’ minority partners were recently asked by principal owner Tony Ressler if they would be willing to sell their shares in the NBA franchise.

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Sportico recently valued the Hawks at $1.83bn, marking a 19 per cent increase over the past 12 months. The sports business publication credited that growth to the team’s journey to the Eastern Conference finals during the 2020/21 season, as well as a planned $5bn real estate development next to the franchise’s State Farm Arena.

In any case, the Hawks’ value has surged since a group led by Ressler purchased the team in 2015 for a reported $730m.

Dyal HomeCourt, which is a division of Blue Owl Capital, already holds minority stakes in other NBA teams, including the Phoenix Suns and Sacramento Kings.

The company is among several firms that have invested in NBA teams since the league updated its policy to allow private equity investment. Under the new rules, private equity firms are allowed to own up to 20 per cent of a single franchise and can invest in as many as five teams.

Arctos Sports Partners became the first private equity firm to capitalise on the rule change, acquiring a five per cent share of the Golden State Warriors in a deal which valued the team at a reported $5.5bn.

Source: Sportico

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