Robert Sarver gets ready to sell the NBA’s basketball team Phoenix Suns WNBA Phoenix MercuryOfficials from an investment bank who handled the sale of professional sports franchises said to ESPN that they expect the transaction’s final value to be a new record.
According to one official at an investment bank, “It will be the highest price ever paid by an NBA team.”
Joe Tsai bought it Brooklyn Nets For a NBA-record $2.35 Billion in 2019, Tilman Fertitta had previously purchased the Houston Rockets For $2.2 billion, Steve Ballmer bought the property LA Clippers For $2 billion in 2014
A potential record bid may be influenced by the Suns’ hot-weather climate, team’s closeness to Los Angeles, Las Vegas, and the Bay Area, and a renovated arena and new practice facility. Other factors include the new TV rights deal and CBA, the NBA’s growing global audience, and the potential expansion of teams in Seattle and Las Vegas.
An official from an investment bank stated that there would be “a tremendous amount” of interest.
ESPN has confirmed that Sarver chose Moelis and Co. as his investment bank to manage the sale. This was confirmed by a source familiar with the matter. Sportico reported Monday Sarver’s choice of the bank. Moelis and Co. spokespeople declined to comment.
Moelis was a financial adviser during the May 2022 transfer of Chelsea Football Club from Todd Boehly to Clearlake Capital. Clearlake Capital bought the team for $5.3billion. Moelis also served as a financial advisor for the 2015 sale. Atlanta Hawks Tony Ressler led group for $850 million
Suns CFO and Suns vice president Jim Pitman informed team employees recently that a complete sale of the team might take six to nine more months, according to team sources. This would be the case for the 2022-23 season.
The Suns didn’t respond to our request for comment. The NBA declined to comment.
Team sources say that Sarver’s potential bidders were in touch with Sarver by representatives of an investment bank. They even reached out the day Sarver declared his intention to sell.
Once the final bidder is selected, that person (or group) must be approved and vetted by the NBA. This will include criminal, personal, and financial background checks. The NBA Board of Governors must vote to approve any transfer of ownership.
Sarver, who is the majority owner of the Suns, Mercury and Mercury, announced Sept. 21 he was looking for buyers for both franchises. This announcement came after Sarver was suspended for one year and fined $10M by the NBA in an investigation into misconduct allegations against him.
This investigation was ordered by the NBA in response to an ESPN story that ran in November 2021 and detailed allegations of racism during Sarver’s 17 years of ownership.
Sam Garvin, Suns vice chair and minority owner, serves as the interim governor. Sarver holds about a third, but as the team’s managing partners, he can sell the entire team.
Jerry Colangelo sold the team in 2004 to a group headed by Sarver for a record $401 million. He told ESPN that he was optimistic about the future of the franchise.
Colangelo stated that he believes this market is one of the best in the country for the future. It was once a great destination for free agents. It can’t stop moving forward.