Representatives of Mubadala and QIA have voiced no official comments however the news comes amid growing Gulf hunger to diversify global portfolios.
Qatar and the United Arab Emirates are allegedly eyeing stakes in buying minority stakes in NBA teams, according to reports.
Ahead of the NBA playoffs, sources close to Abu Dhabi’s Mubadala Investment Co. and Qatar Investment Authority (QIA) said both sovereign funds are currently looking for potential teams.
Representatives of Mubadala and QIA have voiced no official comments however the news comes amid growing Gulf hunger to diversify global portfolios.
The NBA is one of the world’s most prestigious sports leagues, featuring 30 franchises worth $90 billion collectively, according to data compiled by Sportico.
Given the NBA’s change in heart for local and abroad investments, plausible ownership may be possible by either Qatar or Abu Dhabi.
Last December, the league voted on an expansion that allows sovereign wealth funds to buy a share of an NBA team.
“The NBA Board of Governors recently decided to allow direct, passive investments in NBA teams by institutional investors,” NBA spokesman Mike Bass said in a statement.
“All such investments are subject to league review and NBA Board approval,” Bass added.
The globalisation of the NBA has grown over the last few years, with Indian- born businessman Vivek Ranadive and Russian billionaire Mikhail Prokhorov becoming the latest international owners in the basketball league.
Executive Vice President of Madison Square Garden Sports (MSGS) David Hopkinson has voiced that he is eyeing a minority stake for the New York Knicks.
The second most valuable NBA team as of late, the Knicks, may be an option for the sovereign wealth funds to get a step into the door of the NBA.
Diversification
Last month, a top official said Qatar Investment Authority is searching for opportunities in venture capital, fintech, sports and sustainability.
In an interview with Bloomberg Television in Davos, QIA Chief Executive Officer Mansoor Al Mahmoud said the Gulf state’s wealth fund is eyeing investments across Europe, Asia, and the US, targeting various industries.
“It’s a challenging time. Inflation is the main topic for the global economy,” he said.
“We see this as an opportunity to reposition our portfolio. We highlight the weaknesses we have in our portfolio and we wait for these sort of corrections in the market to fulfill the weaknesses we have.”
After Qatar successfully hosted the World Cup, the fund is also thinking about investing in sports, according to Al Mahmoud, but it hasn’t decided whether to move forward with any particular investment.
“This is a very commercially driven decision,” he said. “Sport is becoming a very important theme as well; people are engaged more in sports and digitalisation is making it more attractive to investors.”
