The deal values the NBA franchise at $ 1.8 billion, according to CNBC.
- News comes as Peter J Holt is elevated to Managing Partner
- CNBC reports Sixth Street to own 20% of Spurs, Dell to acquire 10%
- The two measures approved by the NBA board of governors
San Francisco-based investment firm Sixth Street and US billionaire Michael Dell have invested in the San Antonio Spurs of the National Basketball Association (NBA).
According to CNBC’s Leslie Picker, Sixth Street bought a 20 percent stake in the franchise, with Dell securing a 10 percent stake.
Picker added that the deal values Spurs at some $ 1.8 billion, which would put Dell’s investment at $ 180 million. Sixth Street, meanwhile, reportedly paid US $ 360 million based on the reported valuation.
The news came as it was confirmed that Spurs Sports & Entertainment president Peter J Holt had been elevated to Spurs’ managing partner, giving him full control over the franchise.
Both measures have been approved by the NBA board of governors and the deal is expected to close this week.
“I am delighted to join Peter Holt and Sixth Street, as well as the entire San Antonio Spurs community, as a partner in this extraordinary franchise,” said Dell, Founder, President and CEO of Dell Technologies .
“As a Texan and as someone who appreciates how unique a culture of excellence is – in the sport or in any organization – I have immense respect for the record that Spurs have set in San Antonio for many years. many years. Our goal is to serve as true stewards of the franchise going forward. “
News of the new investment comes after the Financial Times (FT) reported in February that private equity firm CVC Capital Partners was in talks to acquire a minority stake in Spurs.
It also follows a decision by the NBA to rework its ownership rules so that private investors have minority stakes in multiple franchises.
Sixth Street, which manages more than $ 50 billion in assets and operates nine offices around the world, also has investments in Airbnb, Legends and Spotify.
The Holt family, who are Spurs’ largest shareholder, first joined the team’s ownership group in 1996, when Peter M Holt became franchise chairman before being replaced by Julianna Holt in 2016.