The NBA is now allowing investment firms to purchase equity in as many as eight franchises, sources told SBJ, elevating the previous league limit of five.
The amendment became effective Dec. 3 and enabled private equity firm Arctos to pursue its new investment in Monumental Sports & Entertainment, the parent company of the Wizards. That stake would represent Arctos’ sixth NBA team interest, according to sources. The firm previously acquired shares in the 76ers, Jazz, Kings, Warriors and an undisclosed fifth team that sources said has not been publicly announced. An Arctos representative did not immediately respond to a request for comment.
Arctos’ exact stake in MSE has not been disclosed. NBA rules limit a single fund to acquiring up to a maximum 20% stake in any one team, and teams can sell up to 30% of their equity to institutional investors in the aggregate.