The Golden State Warriors are a franchise with some glorious past. After making getting their hands on the title 3 times out of 4, Golden State lost its charm. Many veteran players like Shaun Livingston, Andre Iguodala, Kevin Durant etc. pulled out of the team. As a result, their team performance has been quite low since a couple of years. However, this hasn’t affected their reputation what so ever. Arctos Sports Partner, a private equity firm has recently acquired 5% stake of the Golden State Warrior’s stake at $275 million.
The Arctos Sports Partner, a private equity firm is co-led by former Madison Square Garden CEO Doc O’Connor. After a long soliciting session, the firm got their way to a minority stake. The Golden State Warriors have had a slumped year after Stephen Curry succumbed injury seemed to tank down. But After Steph’s recover, the Dubs have been delivering hard. On the other hand, their financial aspects have been very strong with the incoming of Arctos Partner. The firm was co-founded by Ian Charles and David O’Connor have aimed to reach about $1-$1.5 billion in debt funds.
Adam Silver’s opinion on recent sales
In the last few years, many minority owners in the NBA have put their stakes at sale. This is because they did not get the return as expected. While according to Adam Silver, “the long-term health of the league is very solid. Between last year and this year, we’re looking at considerable losses. I generally don’t talk about that publicly because teams are largely privately held. We’re not suggesting that is anybody else’s issue but ours.” Now that the Golden State Warriors stake are pretty high, the partners can pull out huge sums.
There has been significant increase in investment policy by the team owners. Although there has been a minor haircut in the salaries of players, executives and associates, the revenue of the teams have been majorly affected. The Pandemic has forced many team owners to put their stakes up. There has been acute shortage of income and owners are looking for capitals. The Golden State Warrior’s stake are one of the wisest pull offs.