The National Basketball Association is considering creating an investment vehicle that could purchase passive, minority ownership interests across multiple teams, according to Bloomberg.
A memo has been sent to NBA owners to gauge their interest and a response is expected by Sept. 4. The initiative is poised to be discussed at an owners’ meeting scheduled for Sept. 20 in New York.
A number of the NBA’s minority team owners – or limited partners – have looked to sell their stakes in recent years but have struggled to do so in part due to the lack of influence in team governance.
These stakes have also risen significantly in price with the valuation of NBA teams having soared in recent years. Alibaba co-founder Joe Tsai recently completed a takeover of the Brooklyn Nets in a deal which valued the team at a record $2.35bn.
The new investment vehicle is designed to help facilitate these sales and bring in new potential buyers.
“This vehicle would provide additional liquidity for the sale of team ownership interests, including by providing access to a new pool of long-term investors that do not currently have access to team ownership opportunities,” the NBA said in the memo.