Arctos Secures Ownership Stakes in NHL Teams: Tampa Bay Lightning and Minnesota Wild
Arctos Sports Partners Expands NHL Portfolio with Minnesota Wild and Tampa Bay Lightning
Arctos Sports Partners, a leading minority investor in sports franchises, has announced its acquisition of minority stakes in the Minnesota Wild and Tampa Bay Lightning. This move marks a significant expansion of the firm's rapidly growing sports portfolio.
The Minnesota Wild, valued at $785 million, and the Tampa Bay Lightning, valued at $805 million, are projected to generate combined revenues of approximately $340 million for the 2021-22 season. The Wild is expected to bring in $175 million, while the Lightning is projected to generate $161 million.
Arctos Sports Partners, which had about $2.9 billion in assets under management as of October, has made more than a dozen investments across North America and Europe. The firm's previous investments include stakes in the Golden State Warriors, Sacramento Kings, and Fenway Sports Group.
In the NHL, Arctos has invested in the Minnesota Wild, the Pittsburgh Penguins (in partnership with RedBird Capital Partners), and the Tampa Bay Lightning (alongside Blue Owl Capital's Dyal Homecourt Partners). The NHL allows up to 30% ownership by a single fund, giving groups like Arctos some flexibility in their investments within teams. However, the exact dollar amounts Arctos has invested in these teams have not been publicly disclosed.
The Tampa Bay Lightning, controlled by hedge funder Jeff Vinik, is known for its focus on real estate business. The team has played a significant role in the city's $3.5 billion Water Street development project.
The sale of the Minnesota Wild to Arctos Sports Partners will not affect the management or daily operations of the team. Craig Leipold, owner of the Minnesota Wild, confirmed the sale in a statement. The NHL has approved the sale of up to 10% of the Minnesota Wild to Arctos Sports Partners.
Arctos Sports Partners, co-founded by Ian Charles and David "Doc" O'Connor, focuses on growth capital opportunities in partnership with innovative owners. Their strategy includes multi-club ownership and cross-league diversification, aligning with trends of increasing private equity involvement in sports teams and leagues.
This move by Arctos Sports Partners underscores the growing trend of private equity investment in sports franchises. The NHL's rules on private equity investment are the same as in the NBA and MLS. Funds can buy non-voting minority stakes in a maximum of five different teams, with a maximum of 20% ownership for a single fund and no franchise having more than 30% equity owned by investment funds.
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In conclusion, Arctos Sports Partners continues to solidify its position as a key player in sports franchise investments. The firm's strategic approach to ownership and capital participation across leagues ensures a promising future for its portfolio teams, including the Minnesota Wild and Tampa Bay Lightning.
Arctos Sports Partners' acquisition of minority stakes in the Minnesota Wild and Tampa Bay Lightning indicates its expansion into real estate-focused sports franchises, given the Lightning's role in the city's $3.5 billion Water Street development project.
The increased involvement of Arctos Sports Partners in the NHL, particularly with the Minnesota Wild and Tampa Bay Lightning, reflects the growing trend of private equity investment in sports franchises, aligning with the firm's strategy of multi-club ownership and cross-league diversification.
