NHL Opens Up To Private Equity Ownerships

The National Hockey League (NHL) has reportedly opened its doors to private equity ownership, with two teams already nearing agreements.

According to the Financial Times, reigning Stanley Cup champion Tampa Bay Lightning and the Minnesota Wild are nearing stake sales with private equity firm Arctos.

According to an evaluation report from Forbes, the average NHL franchise is now worth US$865 million, a year on year rise of 32%.

Private equity firms reportedly will be allowed to own minority stakes in a maximum of five teams.

Other conditions that were reported include a maximum stake from a single fund of 20%, no franchise allowed more than 30% of its equity owned by investment funds and a minimum investment of US$20million.

It has been reported that Fenway Sports Group (FSG) are in tandem with NHL’s Pittsburgh Penguins in a deal that will ultimately give FSG a controlling interest.

The acquisition has been agreed upon, with the financial terms of the agreement not made available to the public, with the deal subject to the pending approval of NHL’s board of governments.

The reported change marks the most recent major sports league to open its doors to private investors, with the National Basketball Association (NBA), Major League Baseball (MLB) and Major League Soccer (MLS) having already done so.