L.A. Lakers Sale Agreement Secured After UAE's Investment in Walter's TWG Global Entities
Fresh Take:
It's been quite a week in the sports world! The Buss family just struck a $10 billion deal to transfer control of the L.A. Lakers, breaking records. This blockbuster move comes less than two months after a significant investment into the holding company, TWG Global, by Mubadala Capital.
Mubadala Investment Company, a sovereign wealth fund based in the UAE, entered into a mega-deal with TWG in April. The agreement involved Mubadala leading a whopping $10 billion investment in TWG, who then acquired a stake in an asset manager and promised to commit $2.5 billion to Mubadala products. The partnership could see additional investments of up to $20 billion from TWG.
Though Mubadala doesn't hold direct stakes in the NBA or other major North American sports leagues, they boast a diverse sports portfolio. Their investments include a 20% stake in Brazilian soccer commercial rights, a portion of FIM supercross motorcycle racing, a partnership with SailGP, owning the Mubadala SailGP Brazil team, and Zayed Sports City, a sports and entertainment complex in Abu Dhabi. Mubadala has also been a long-term supporter of professional tennis.
The UAE has been involved in mixed martial arts and the UFC, signing a five-year deal in 2019 that was later extended to 2028.
The NBA changed rules late last year, allowing private equity and sovereign wealth funds to invest, with a 20% limit on a fund's ownership in any team. TWG Global's Mark Walter, who already held a minority stake in the Lakers since 2021, is poised to acquire more interests in the team.
The expanded Lakers ownership doesn't affect TWG Global's primary portfolio focused on financial services, insurance, AI, and technology. Walter's sports holdings include the LA Sparks WNBA franchise, Cadillac's Formula 1 team, the Billie Jean Cup, and the Professional Women's Hockey League.
Insights:Mubadala has shown a long-term commitment to tennis through diverse investments, such as tournament sponsorships, community programs, and partnerships with various events. Their basketball and sports investments, however, have substantially increased through TWG Global, a partnership that gives Mubadala exposure to iconic sports teams.
Related Story:Lakers to Be Sold to Dodgers Owner Walter at Record $10 Billion Valuation— A revealing look at the strategic and diversified approach Mubadala Investment Company takes in its sports portfolio, delving into investments in tennis, basketball, motorsports, and other global sports franchises and leagues. The piece covers Mubadala’s community engagement initiatives, key investments through TWG Global, their motorsports interests, and the significance of these investments in the global sports landscape.
The Buss family's recent $10 billion deal for the L.A. Lakers, part of TWG Global, offers Mubadala Investment Company an increased exposure to iconic sports teams, including basketball. As Mubadala already holds a stake in TWG Global, this deal could potentially broaden their NBA investments beyond the Lakers, extending into other global sports franchises and leagues.
