Tampa Bay Lightning’s Ownership Group Expands
The ownership group of the Tampa Bay Lightning, led by billionaire investor Jeff Vinik, is expanding. Vinik Sports Group, which has been the team’s ownership group since 2010, is selling a portion of the National Hockey League team to a group of investors led by Doug Ostrover and Marc Lipschultz.
Background on the Deal
The deal was approved by the NHL’s Board of Governors on October 1 and will take effect immediately. Vinik will retain control of the team after the transaction and will remain as the team’s governor for the next three years. At that time, control will transfer to Ostrover and Lipsch Schultz.
The valuation of the team is reportedly close to $2 billion, indicating a compound annual growth rate of about 18% since Vinik acquired the team in 2010 for a reported $110 million.
Private Equity’s Interest in Professional Sports
Private equity has been growing its interest in professional sports teams in the United States. In recent years, there has been an increase in deals, with private equity firms acquiring stakes in teams. The latest development is the allowance of private equity firms to acquire up to 10% stakes in NFL teams.
Arctos Partners and Blue Owl Capital’s Involvement
As part of the deal, Arctos Partners will also sell a portion of its ownership and remain a minority stakeholder. Ostrover and Lipschultz, the co-CEOs of Blue Owl Capital, were introduced to Vinik through their relationships with Arctos. Blue Owl Capital has a strong focus on sports, with a sports strategy fund and a range of investments in various sports and e-sports teams.
Tampa Bay Lightning’s Success
The Lightning have enjoyed significant success, with two Stanley Cup championships since 2020. Under Vinik’s ownership, the team has received significant investments in real estate development in downtown Tampa Bay. The team is valued at around $2 billion, making it one of the most valuable teams in the NHL.
Conclusion
The expansion of the Tampa Bay Lightning’s ownership group is a significant development in the world of professional sports. The deal is a testament to the growing interest in private equity investments in sports teams. As valuations in professional sports continue to rise, it is likely that we will see more deals like this in the future.
FAQs
Q: Who is Jeff Vinik?
A: Jeff Vinik is the owner of the Tampa Bay Lightning and the chairman of the team’s Board of Governors.
Q: Who are Doug Ostrover and Marc Lipschultz?
A: Doug Ostrover and Marc Lipschultz are the co-CEOs of Blue Owl Capital, an asset manager with a sports strategy fund.
Q: What is the valuation of the Tampa Bay Lightning?
A: The valuation of the team is reportedly close to $2 billion.
Q: How much did Vinik pay for the team in 2010?
A: Vinik acquired the team in 2010 for a reported $110 million.
Q: Who is Arctos Partners?
A: Arctos Partners is an asset manager with a sports strategy fund and a range of investments in various sports and e-sports teams.
Q: What is the compound annual growth rate of the team’s valuation since 2010?
A: The compound annual growth rate of the team’s valuation since 2010 is approximately 18%.
Author: www.cnbc.com
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