San Francisco-based investment firm Sixth Street and US billionaire Michael Dell have invested in the National Basketball Association’s (NBA) San Antonio Spurs.
According to CNBC’s Leslie Picker, Sixth Street has purchased a 20 per cent stake in the franchise, with Dell securing a ten per cent share.
Picker added that the deal values the Spurs at some US$1.8 billion, which would place Dell’s investment at US$180 million. Sixth Street, meanwhile, would have paid US$360 million based on the reported valuation.
The news came as it was confirmed that Spurs Sports & Entertainment chairman Peter J Holt has been elevated to the role of managing partner for the Spurs, giving him complete control over the franchise.
Both moves have been approved by the NBA’s board of governors and the transaction is scheduled to close this week.
“I am excited to join Peter Holt and Sixth Street, and the entire San Antonio Spurs community, as a partner in this extraordinary franchise,” said Dell, the founder, chairman and chief executive of Dell Technologies.
“As a Texan and as someone who appreciates how unique a culture of excellence is – in sports or in any organisation – I have tremendous respect for the record the Spurs have established in San Antonio over many years. It is our goal to serve as true stewards of the franchise going forward.”
News of the fresh investment comes after the Financial Times (FT) reported in February that private equity firm CVC Capital Partners were in talks to acquire a minority stake in the Spurs.
It also follows a decision by the NBA to rework its ownership rules so that private equity investors to own minority stakes in multiple franchises.
Sixth Street, which manages over US$50 billion in assets and operates nine offices around the world, also has investments in Airbnb, Legends and Spotify.
The Holt family, which is the largest shareholder of the Spurs, first joined the team’s ownership group in 1996, when Peter M Holt became chairman of the franchise before being replaced by Julianna Holt in 2016.
Source: SportsProMedia
Can’t stop reading? Read more
Private equity giants circle Whirlpool’s Indian unit as $600m stake sale advances
Private equity giants circle Whirlpool’s Indian unit as $600m stake sale advances Private equity...
KKR and Capital Group partner to launch hybrid funds bridging private and public markets
KKR and Capital Group partner to launch hybrid funds bridging private and public markets KKR and...
Apple investors look for AI clarity and tariff resilience as private equity confidence endures
Apple investors look for AI clarity and tariff resilience as private equity confidence endures As...