(Bloomberg) -- A chunk of the Golden State Warriors, the National Basketball Association’s most successful team over the past decade, is up for sale, according to people familiar with the matter.
A group of minority investors accounting for just over 10% are looking to offload their stake, said the people, who asked not to be identified discussing private information.
A potential valuation of $7 billion has been discussed, though one person said there has been push back from investors over such a high figure. Talks are ongoing and sale plans could change, the people said.
A transaction at that mark would make the Warriors one of the world’s most valuable teams in any sport. Only a handful of teams, including the New York Knicks, Dallas Cowboys, Washington Commanders, and Manchester United could rival the Warriors in terms of highest sports valuation.
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“Per our organization policy, we do not comment on the potential sale or non-sale of ownership among our investment group,” said Raymond Ridder, spokesperson for the Warriors.
The potential sellers are not among the major investors in the Warriors. A group led by Joe Lacob bought the Warriors in 2010 for about $450 million. Sports investor Arctos has also been steadily increasing its stake in the franchise.
The Warriors, who play at Chase Center in San Francisco, embarked on a winning run from 2015, winning four championships through 2022, led by the club’s all-time leading-scorer, Steph Curry.
A recent dip in performance has sparked concerns about the future of the team. The trademark trio of Curry, who is 35, Klay Thompson and Draymond Green, who are both 33, all have more years behind them than in front.
NBA valuations — along with sports teams in general — have been on a tear. In August, Michael Jordan sold a majority stake in the NBA’s Charlotte Hornets to a group led by Gabe Plotkin and Rick Schnall for $3 billion.
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Mat Ishbia, who founded wholesale mortgage lender UWM Holdings Corp., agreed last year to buy more than 50% of the Phoenix Suns in a record deal that valued the club at $4 billion.
Any potential buyer for the Warriors could be complicated due to rules that limit the amount institutional investors can own in an NBA team to 30%. No single institutional investor can own more than 20%.
In December 2021 Arctos bought an 8% stake at a valuation of about $5.5 billion, according to Sportico, and now holds over 15% of the team. Social Capital founder Chamath Palihapitiya sold his remaining stake in the Warriors last year to Arctos.
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--With assistance from Eliyahu Kamisher.
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