NBA Commissioner Adam Silver Dismisses Yet Leaves Out Possibility Of Sovereign Wealth Funds Taking Over The League

NBA commissioner Adam Silver has addressed the problem of sovereign wealth funds acquiring majority ownership of NBA franchises in a statement.

Speaking at the AP Sports Editors convention, Silver said there are no pathways “in the foreseeable future” for a sovereign wealth fund swooping in and purchasing a franchise.

NBA Commissioner Adam Silver Dismisses Yet Leaves Out Possibility Of Sovereign Wealth Funds Taking Over The League

Having said that, Silver is intelligent and is aware that nothing is ever certain. He is fully aware of both the current state of reality and what it may very well entail in the near future.

“I don’t want to say what could ever happen, but there’s no contemplation right now,” Silver said. “I mean, it’s very important to us. Putting aside sovereign wealth funds that individuals are in a position to control our teams, be responsible to the fans, be responsible to their partners and to the players.”

The controlling owner of an NBA club must own at least 15% of the franchise, and any sovereign wealth fund may only have a passive interest in a team of no more than 5%, according to the league’s current investment guidelines.

According to many sources, the Qatari sovereign wealth fund acquired a stake in Monumental Sports & Entertainment last month. The Qatari government is reportedly making an investment in American professional sports for the first time.

The merger of the PGA Tour and LIV Golf, the golf series supported by Saudi Arabia, was a historic accord that was followed by the signing of the treaty. However, no agreement has been formally signed.

Both the Milwaukee Bucks and Phoenix Suns recently sold their ownership interests for amounts that broke prior team value records. Marc Lasry sold his interest in the Bucks for $3.5 billion in March, and Mat Ishbia bought the Suns from Robert Sarver for $4 billion in February.

The NBA opened up the option for private equity companies and sovereign wealth funds to buy interests in clubs as a result of those prices increasing in recent years.

 

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