NBA Amends Private Equity Rules to Facilitate Lakers Purchase
The NBA is changing its private equity policy, allowing a firm and its executives to invest in the same franchise. This change enables Joshua Kushner's Thrive Eternal fund and Bob Iger to co-invest in their $12.5 billion acquisition of the Los Angeles Lakers. Previously, NBA rules prohibited an institutional investment firm from supporting one of its managers' purchases. The new rule also limits cross-ownership among private equity firms with stakes in teams. This adjustment could make it easier for potential owners to raise capital as team valuations continue rising. The deal still requires approval by the NBA's Board of Governors, which may occur later this year.
Topics: Franchise Ownership Investment Rules NBA Private Equity