Arctos invests in the Philadelphia 76ers and New Jersey Devils at an elevated monetary worth in its second investment round
In a significant move, Arctos Sports Partners has purchased a larger stake in Harris Blitzer Sports & Entertainment (HBSE), the company that leads the Philadelphia 76ers and New Jersey Devils, among other sports properties and venues.
The topline valuation of HBSE, including the 76ers and Devils, is reported to be over $4 billion, according to sources. However, the exact combined stake of Arctos Sports Partners in these teams is not publicly disclosed.
The initial investment by Arctos in HBSE was at a $3 billion valuation last year. This second investment came at a higher valuation, although the specific figure remains undisclosed.
Josh Harris and David Blitzer, the leaders of HBSE, also own stakes in other high-profile sports teams such as the Chicago Cubs, Los Angeles Dodgers, Utah Jazz, Real Salt Lake, and Boston Red Sox (through Fenway Sports). The Devils are valued at $825 million, while the 76ers are valued at $3.21 billion.
Arctos Sports Partners, a backer of Elevate Sports Ventures, a data and consulting firm co-founded by HBSE, has also recently invested in the Tampa Bay Lightning this year. The deal has been approved by both the NBA and NHL.
The investment firm now has a stake in at least 20 different sports teams. Arctos disclosed assets of $6.64 billion as of the end of 2022, a 69% increase from the year prior.
It's worth noting that Arctos is paying less than the $4 billion valuation due to an LP discount. The exact details of this arrangement are not publicly known.
The NWSL's Utah Royals are valued at $100 million in the $580M soccer buy by Miller, in a related story.
As the sports landscape continues to evolve, it will be interesting to see how Arctos Sports Partners' expanded stake in HBSE will impact the Philadelphia 76ers and New Jersey Devils, as well as the broader sports industry. Official filings or announcements from Arctos Sports Partners or the teams themselves may provide more insight into the current combined stake held by Arctos.
- Arctos Sports Partners, known for investing in sports properties, has purchased a larger stake in Harris Blitzer Sports & Entertainment (HBSE), the company that manages the Philadelphia 76ers, New Jersey Devils, and other sports teams.
- Arctos Sports Partners has recently invested in multiple teams, including the Tampa Bay Lightning and the Utah Royals of the NWSL, demonstrating their interest in private-equity opportunities within the sports industry.
- Despite not disclosing the exact combined stake of Arctos Sports Partners in the Philadelphia 76ers and New Jersey Devils, the topline valuation of HBSE, including these teams, is reported to be over $4 billion.
- With an investment in the NHL's Tampa Bay Lightning and the NBA's Philadelphia 76ers, Arctos Sports Partners now holds stakes in at least 20 different sports teams, signifying their strategic approach to finance and investing in the sports industry.
- Arctos Sports Partners is paying less than the $4 billion valuation for their expanded stake in HBSE due to an LP discount, highlighting the importance of finance negotiations in the world of private-equity investing in sports.
