NBA allows pension and sovereign wealth funds to buy team stakes

The NBA in the United States is prepared to allow wealth managers and pension funds to acquire passive equity in its teams, opening up new financial avenues for franchises.

The NBA's governing board has voted to approve such investments, signalling the league's continued efforts to entice more notable investment groups to become involved in franchise ownership.

“The NBA board of governors recently decided to allow direct, passive investments in NBA teams by institutional investors” said Mike Bass, the NBA's chief communications officer. “All such investments are subject to league view and NBA board approval”

Under current NBA rules, private investment groups can own up to 20% of any franchise and have stakes in up to five teams.

Arctos, which now includes shares in the Golden State Warriors, Sacramento Kings, and the holding company in charge of the Philadelphia 76ers, is one of the most prominent such groups in terms of its connection with the NBA.

According to Sportico, the average value of an NBA team is $2.58 billion.

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