Utah's NBA team, the Jazz, secures a new investment with Arctos, setting the stage for increased sports activity in the state.
Arctos Sports Partners Expands Sports Investment Portfolio with Utah Jazz Acquisition
Arctos Sports Partners, the world's largest sports-focused private equity fund, has made a significant move by purchasing a minority stake in the Utah Jazz, according to reports. This investment marks the fourth NBA franchise in which Arctos is known to be an investor.
The Utah Jazz, now valued at $1.78 billion, joins a diverse portfolio that includes major NBA teams such as the Golden State Warriors, Sacramento Kings, and Philadelphia 76ers. Arctos's reach extends beyond basketball, with investments in Major League Soccer's Real Salt Lake and European soccer clubs, reflecting a multi-league and international investment approach.
Arctos's strategy focuses on growth capital opportunities, partnering with innovative owners to unlock value and drive expansion in the sports industry. Their involvement with high-profile sports properties and alignment with leading sports owners positions them as a partner of choice in the expanding sports investment ecosystem.
The transaction is subject to approval from the NBA. The specific details of Arctos' ownership of the Jazz, including the size of their stake, have not been disclosed.
This move aligns with the broader trend of private equity firms gaining access to sports franchise ownership as leagues liberalize ownership rules. This has created new liquidity and growth capital for sports teams and expanded opportunities for private equity to participate in a growing $718 billion global sports market.
Arctos Sports Partners, through this deal, will become an investor in the Utah Jazz, adding to their growing presence in sports investment. They believe Salt Lake City Entertainment Group (SEG), the group that owns the Jazz, is poised to be the next big sports and entertainment group.
Arctos Sports Partners has more than $5 billion in client money distributed across multiple funds. The firm, founded by tech billionaire Ryan Smith, is planning to build a premier sports and entertainment center in Utah, further solidifying their commitment to the region.
The Utah Royals Football Club (NWSL), valued at $100M, is also part of a $580M soccer buy involving the Utah Jazz owner, Ryan Miller. Other members of the Jazz ownership group include Ryan Sweeney, Mike Cannon-Brookes, the family of Larry Miller, and retired NBA All-Star Dwyane Wade, who bought into the Jazz last year.
Arctos Sports Partners has also invested in Elevate Sports Ventures and three National Hockey League (NHL) teams. They are considering exploring more sports-related opportunities in Utah, indicating a strong commitment to the region's sports industry.
This investment in the Utah Jazz underscores Arctos Sports Partners' ambition to capitalize on evolving opportunities such as technological innovation, global fan engagement, and multi-club ownership strategies that create synergies across different sports and geographies.
[1] BBC News, "Arctos Sports Partners acquires minority stake in Aston Martin Formula One team," 2023. [2] Forbes, "Arctos Sports Partners: The Private Equity Firm Disrupting The Sports Industry," 2023. [3] SportsPro Media, "Arctos Sports Partners: The Rise Of The Private Equity Investor In Sports," 2023. [4] Bloomberg, "Arctos Sports Partners: The Largest Sports-Focused Private Equity Fund," 2023.
- Arctos Sports Partners, having already invested in major NBA teams like the Golden State Warriors, Sacramento Kings, and Philadelphia 76ers, is now expanding its sports investment portfolio with the acquisition of a minority stake in the Utah Jazz, also known to be a high-value NBA franchise.
- Besides basketball, Arctos Sports Partners' investments beyond the NBA include Major League Soccer's Real Salt Lake and European soccer clubs, demonstrating a multileague and international approach to sports investment.
- With their recent private-equity investment in the Utah Jazz worth billions, Arctos Sports Partners has shown its continued interest in capitalizing on synergies across different sports and geographies, following their involvement with multiple sports properties and leading sports owners.
