The business side of basketball can be complex, especially for a team like the Sacramento Kings who currently have 36 different investors, most of which have varying percentages of ownership. Now we have a new player in the game.
As reported earlier this week in the Wall Street Journal, Dyal Capital is close to making a deal to streamline some of the team's ownership group. According to a league source, a small section of Kings minority owners are preparing to sell their shares of the franchise to the investment company.
The total shares being sold represent roughly a five percent stake in the organization, which now has a valuation of $1.9 billion.
While the list of potential minority owners that are cashing out is unknown at this time, a source confirms that Vivek Ranadivé, the franchise's Chairman, CEO, and Governor, is not selling any of his portion of the team.
This is an opportunity for some minority owners, many of which stepped in to purchase the team from the Maloof in 2013, to walk away with a healthy return on investment.
The franchise was originally sold for a valuation of $534 million and like many professional franchises, has seen its value nearly quadrupled over the last eight years. The option to sell at this time
Dyal Capital already announced a similar partnership with the Phoenix Suns early in July. They hope to add up to six NBA franchises to their portfolio.