The NBA continues to expand its economical horizons by now allowing teams to accept investments from endowments, pension funds and sovereign wealth funds, as per Sportico.
This development will result in foreign governments and US university endowments buying stakes in NBA teams. In 2010, the NBA had become the first major US sports league to accept private equity investments in its teams.
“The decision could pave the way for foreign governments and large U.S. university endowments, such as Harvard’s $42 billion war chest, to buy small, passive stakes in NBA franchises,” Sportico reported.
The majority owners of the Washington Wizards (Ted Leonsis) and Toronto Raptors (Larry Tanenbaum) backed the bid for this new rule. The changes as per NBA spokesman Mike Bass, “are subjected to league review and NBA Board approval.”
