The Boston Celtics head to the United Arab Emirates. The majority owner of the franchise Wyck Grousbeck traveled to the Middle East to introduce the team to one of the region’s largest investors, reported Bloomberg.
The Celtics played a double header with the Denver Nuggets in preseason in the Emirati capital last October, during the third annual edition of the Abu Dhabi Games.
On that occasion, Grousbeck met Mubadala Investment Co., one of the country’s sovereign wealth funds, to discuss a potential investment, according to sources familiar with the matter.
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Celtics Middle East – The various stakeholders
In the midst of ongoing rumors about the future of the franchise, Grousbeck told reporters that there is a lot of interest around the team.
Among the potential suitors, the only one who has officially confirmed his willingness to make an offer is Stephen Pagliucapart of the group that owns the Celtics and known in Italy for being the main shareholder of’Atalanta.
The rumors also involved other subjects, among whom they emerged Robert Haleready to compete internally with Pagliuca as he has also been part of the corporate structure since 2012, as well as Mark Bezosbrother of the owner of Amazon.
Although it had loomed as a viable option, the interest of Fenway Sports Groupthe group that owns the Liverpool and gods Boston Red Sox in which it holds a stake LeBron Jameswas denied by the representatives of the holding company, although it remains to be seen whether they are merely declarations of circumstance.
The mandate for the transfer is entrusted to JPMorgan e BDT&MSD, with the two banks having been appointed by the owner to bring offers to the table that respect the timescales set by the Grousbecks, willing to close the matter by the end of the year or at the beginning of 2025 at the latest.
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Hale, minority shareholder of the franchise and Bezos, brother of the entrepreneur who gave birth to Amazon, could join Stephen Pagliuca, the only person who has confirmed his intentions.
Celtics Middle East – The valuation of the franchise
Funds can hold up to 20% of an NBA franchise according to current championship regulations.
As team valuations rise, franchise owners are increasingly turning their attention towards Gulf sovereign wealth fundsamong the few able to afford investments of this magnitude.
This phenomenon is growing despite the fact that Middle Eastern investors tend to avoid passive holdings, preferring investments that guarantee a say in management.
I Celtics, valued at 4.9 billion euros and Sportythey may have a particular need given that, despite sporting success, the financial situation remains fragile also due to high costs. Additionally, the franchise does not have its own arena, an increasingly crucial factor in generating revenue.
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The owners announced after winning the title that they were receptive to offers for the franchise’s share package through a gradual exit to be completed in 2028.
The NBA’s expansion into the Middle East
Grousbeck’s approach to the Emirates fits into the NBA’s broader strategy to expand in the region. This year, the league entered into talks with Qatari sovereign investors, proposing a series of initiatives, including exhibition matches in modern stadiums built for the 2022 World Cup and media rights deals.
The NBA is also considering opening a regional office in the Middle East, one of the few areas where it does not yet have a direct presence. «We are exploring options to broaden fan engagement in the Gulf region, where interest in the NBA is growing» said Mike Bass, NBA spokesman.
As of mid-2023, the Qatar Investment Authority purchased 5% of Monumental Sports & Entertainment, the holding company of Washington Wizards. The Emirates, however, have recently concluded various agreements, among which the sponsorship of Emirates in NBA Cup.
The New York Knicks towards the next step
The NBA is looking to renew his contract with ADQan investment company based in Abu Dhabiexpiring this year, while i New York Knicks they have an agreement that promotes the Emirati capital as a tourist destination.
It has long been rumored that the Knicks could be the next NBA team to see an investment from the Middle East that goes beyond the presence of the logo on the jersey and extends to company shares.
The team is controlled by Madison Square Garden Sports Corp., whose major shareholder, Silver Lake Managementhas ties to Sheikh Mansour Bin Zayed Al Nahyan, an investor in Manchester City.
In October, James Dolanowner of the Knicks, signed a deal to build a second Sphere Entertainmentthe famous Las Vegas technology facility, right in Abu Dhabi.
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