Sixth Street becomes PE's latest pro sports backer with Spurs deal
June 22, 2021
- Share:
The San Antonio Spurs have a new PE backer, but the franchise isn't changing hands. (Tom Pennington/Getty Images)
San Francisco-based Sixth Street has joined the growing list of private equity firms making minority investments in pro sports franchises after the NBA and MLB have loosened ownership rules over the past few years.
- Sixth Street and billionaire software entrepreneur Michael Dell have agreed to invest in the San Antonio Spurs as minority strategic partners. The firm and Dell acquired a combined 30% stake in the Spurs, valuing the franchise at around $1.8 billion, according to reports. The deal has been approved by the NBA Board of Governors and is expected to close later this week.
- The news comes as a bit of a surprise after reports in February said Luxembourg-based CVC Capital Partners was in talks to acquire a 15% stake in the Spurs at a roughly $1.3 billion valuation. Regardless, the Holt family will continue as the franchise's majority owner and Peter Holt will become managing partner.
- This marks Sixth Street's first investment in a sports franchise. But the firm, which spun out of TPG Capital last year, has experience in the sports market. Earlier this year, Sixth Street acquired a majority stake in Legends, a hospitality conglomerate in the sports and entertainment industry. Last year, it also launched early-stage-focused Concrete Rose Capital with the NBA's Andre Iguodala.
- Share:
-
-
-
-
Tags:
Join the more than 1.5 million industry professionals who get our daily newsletter!