Arctos Acquires Partnership in NBA's Jazz, Preparing Utah for Further Athletic Endeavors
Retired NBA All-Star Dwyane Wade is not the only high-profile figure to show interest in the Utah Jazz. Arctos Sports Partners, a leading sports investment firm, has announced plans to purchase a minority stake in the team, subject to NBA approval. This move will make the Utah Jazz the fourth NBA franchise in which Arctos is known to be an investor.
Arctos Sports Partners, the largest sports-focused private equity fund globally, has a diverse portfolio that extends beyond the NBA, NFL, and MLS. The firm has investments in NHL and MLB teams, as well as major European soccer clubs like Paris Saint-Germain. Arctos typically pursues minority stakes and growth capital opportunities, often partnering with innovative team owners to drive value and expansion in these franchises and leagues.
Chad Hutchinson, a partner at Arctos, expressed excitement about potential sports-related opportunities in Utah and building a premier sports and entertainment center there. He believes the Smith Entertainment Group (SEG), the majority owner of the Utah Jazz, is poised to be the next big sports and entertainment group.
The size of Arctos' ownership of the Jazz hasn't been disclosed. However, the firm already controls a 13% stake in the Golden State Warriors and a 17% interest in the Sacramento Kings, as well as a stake in HBSE, the parent company of the Philadelphia 76ers. Arctos Sports Partners manages more than $5 billion in client money distributed across multiple funds.
Ryan Smith, a tech billionaire, is the majority owner of the Utah Jazz, having bought the club for $1.66 billion two years ago. The team is now worth $1.78 billion, ranking 22nd among NBA teams, according to the annual Sportico valuations.
Arctos' investment in the Utah Jazz is not the only sports-related move by the firm. They also have investments in half a dozen Major League Baseball (MLB) teams and European soccer clubs. The firm's strategic approach to global multi-league sports investment reflects its commitment to growth and diversification within the sports industry.
It's important to note that the NBA's bylaw requires ownership stakes to be at least 1% of a team. The related story mentions a pro volleyball merger valued at $325M, but this is not directly related to the Utah Jazz investment.
Arctos Sports Partners' purchase of a minority stake in the Utah Jazz is a significant move that underscores the firm's commitment to the sports industry. As the firm continues to grow its sports assets under management, it remains to be seen what other opportunities they will pursue in the future.
Arctos Sports Partners, with a diverse portfolio including investments in NBA, NFL, MLS, NHL, MLB, and major European soccer clubs, is set to become an investor in the Utah Jazz. Chad Hutchinson, a partner at Arctos, expresses enthusiasm about potential opportunities in Utah and envisions building a premier sports and entertainment center. The firm's strategic approach to global multi-league sports investment reflects its commitment to growth and diversification within the sports industry.
