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Law360: NBA Eager To Increase Team Liquidity Amid Rising ValuesOctober 18, 2019
The NBA is looking to ease a liquidity crunch among its franchises by becoming more flexible in how investors can buy into teams. Experts say this move could enable owners to cash in on the surge in franchise values in recent years and broaden the pool of potential investors looking to capitalize on the popularity of sports.
O’Melveny’s Sports Industry Group co-chair Chuck Baker said that as the values of teams in the NBA and other US leagues increase more quickly than the list of approvable buyers, it’s no surprise that some current owners are interested in alternative liquidity sources for themselves and their limited partners.