With sovereign wealth funds starting to shovel money into sports teams and leagues across the country, NBA commissioner Adam Silver said Monday that he does not see any state-owned investment groups becoming the controlling owner of an NBA franchise anytime soon.
Per the NBA¡¯s investment rules, the controlling owner of an NBA franchise must own at least 15% of the franchise.
If a sovereign wealth fund wants to get involved, it must have a passive investment in the organization that is worth no more than 5%. A prime example of this is the Qatar sovereign wealth fund, which last month agreed to purchase a 5% stake in Monumental Sports and Entertainment, the controlling owner of the Washington Wizards, the WNBA¡¯s Washington Mystics and the NHL¡¯s Washington Capitals.
Silver wants to make sure that individuals are the ones that are primarily governing teams, though.
¡°I don¡¯t want to say what could ever happen, but there¡¯s no contemplation right now,¡± Silver said in Las Vegas. ¡°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.
¡°It¡¯s very important to us that there be a person (in charge), and this is independent of sovereign wealth funds. I think that in terms of the connection with the community, the connection with the players and their other partners in the league.¡±
One of the most notable sovereign wealth funds as it relates to the sports is Saudi Arabia¡¯s Public Investment Fund, which funds LIV Golf. The PGA Tour created shockwaves across the golf world last month when it announced it planned to enter a merger with LIV.
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