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.
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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.
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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
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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.