The New York Knicks could surprisingly be open to selling a portion of the team, however, the potential buyer may surprise long-time fans but already has links to the city’s favorite basketball team.
For years, frustrated New York sports fans have hoped that owner James Dolan would be willing to release his ownership stranglehold on the team — and on the New York Rangers and the “world’s most famous arena” Madison Square Garden.
While Rangers fans have less to be upset about since the NHL franchise has been consistently competitive over the last two decades, that hasn’t been the case for the Knicks. Since 2000, the franchise has had just four winning years, which includes this season as the team sits with a 33-27 record and in the sixth spot in the Eastern Conference.
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Over the years, there have been rumors occasionally of a possible New York Knicks sale, but nothing substantial. However, a new report suggests that Dolan could sell a notable portion of the team in the near future.
Late last week, Bloomberg reported that Qatar Investment Authority and Abu Dhabi’s fund Mubadala Capital are kicking the tires on ownership stakes in an NBA team. The two funds manage $450 billion and $284 billion in assets, respectively, and in December the league approved the option for sovereign wealth funds to purchase as much as 20% of a franchise.
However, private equity investors can actually buy up as much as 30% of one of the league’s 30 franchises.
The report reveals that the New York Knicks could be one of the best fits for such a deal since the organization has suggested an openness to selling a minority stake and has links to Abu Dhabi through Mubadala’s investment in equity group Silver Lake. Which is an investor in Knicks owner Madison Square Garden Sports.
It may not be exactly what Knicks fans truly want, however, it is still notable nonetheless and could be the beginning of more stakes in the team being sold.