Hours After Qatar’s Investment in $2,500,000,000 Worth NBA Franchise, Commissioner Adam Silver Discloses His Dismay With “Sovereign Wealth Funds”

NBA teams around the league have seen some massive changes in their ownership over the past few months. The Phoenix Suns, most notably, have changed hands and it is under the ownership of American billionaire Mat Ishbia. Moreover, the owners of the Giannis Antetokounmpo-led Milwaukee Bucks also sold their minority stakes. With all this movement in the world of NBA ownership, a foreign investment group has silently made major moves.

A few hours ago, reports confirmed that Monumental Sports Group, which owns the Washington Wizards, has welcomed a new investor. With the NBA world talking about this move, commissioner Adam Silver gave some clarity into the situation. 

NBA commissioner Adam Silver bashes all reports of foreign ownership

The Washington Wizards officially have new investors. It is the QIA that has bought minority stakes in the Monumental Sports Group, according to an official statement. Qatar Investment Authority, or QIA, is the sovereign wealth fund of the State of Qatar.

With Qatar and other Middle Eastern nations making massive investments in other sports like soccer, it looks like the NBA is next on their list. After all, basketball is one of the most popular sports in the world.

However, it seems that Adam Silver will not allow any sovereign wealth funds to be controlling owners of NBA franchises anytime soon. Hours after this massive Wizards update, Silver addressed the media.

“I mean, it’s very important to us, putting aside sovereign wealth funds that individuals are in a position to control our teams, be responsible to the fans, be responsible to their partners and to the players”, said Silver as reported by ESPN.

He also revealed the reason why investors such as the QIA are eyeing the NBA. There are a handful of people who have the checkbook to handle and take over an NBA franchise. 

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“We’re running out of individuals, frankly, who are in a position to write those kinds of checks, and especially when you’re not going to be the control owner of the team”, said the commissioner. Under current NBA rules, team owners have to control at least 15% of the franchise. On the other hand, sovereign wealth funds have access to only 5%.

The league gave the green light to sovereign wealth funds very recently

Adam Silver is making a very fair point when he mentioned the lack of available investors. This problem was brought to light in December when the NBA opened its doors to foreign investors.

After a vote by the owners, the NBA approved teams to allow investments by sovereign wealth funds, pension funds and even university endowment funds in December 2022. 

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What are your thoughts on Adam Silver’s comments? Let us know in the comments below.