Fenway Sports Group is looking to buy an NBA team after acquiring the NHL’s Pittsburgh Penguins, the Nerdshala have learned.
why it matters: FSG is pioneering a new type of corporate sports ownership, buying marquee franchises in various geographic markets.
- FSG currently owns The Boston Red Sox and a NASCAR team in the US, as well as Liverpool FC in Europe. It has also recently invested in Spring Hill Group, a materials production firm co-founded by LeBron James and Maverick Carter (both have small stakes in FSG).
Behind the scenes: A source close to FSG/Penguin negotiations says the sale price would be around $875 million, and adds that FSG would have been interested in buying the Boston Bruins had the club been available. The sellers are financier Ron Berkeley and Penguin legend Mario Lemieux.
- FSG first signaled its interest in buying an arena-based team while trying to solicit investors for the failed SPAC deal last year.
- It now wants to add an NBA team to its portfolio, with the hopes that it will find a target in 2022.
By numbers: The most recent sale of an NBA team was the Utah Jazz to Qualtrics CEO Ryan Smith last year for $1.7 billion. The most recent NHL sale was the Arizona Coyotes for $300 million to real estate and media mogul Alex Meruello.
- FSG majority owner John Henry sold an 11% stake earlier this year to private equity firm RedBird Capital Partners at a valuation of $7.3 billion.