Qatar Investment Authority takes 5% stake in owner of Washington Wizards

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The Qatar Investment Authority has taken a stake in the owner of Washington’s professional basketball and hockey teams, the first investment by a sovereign wealth fund in American sports.

The fund is paying $200 million for a 5 percent stake in Monumental Sports & Entertainment, owner of the NBA’s Washington Wizards, the WNBA’s Washington Mystics and the National Hockey League’s Washington Capitals, valued at $4.05 billion, according to two people. . Case.

In recent years, Gulf countries have invested billions of dollars in sports ranging from golf to tennis and football, partly to develop the domestic tourism and entertainment sectors, but also in search of returns as the value of media and broadcasting increases. The industry benefits from the explosive growth in Right.

The investment from QIA, which has an estimated net worth of $450bn, comes less than a year after the NBA amended its bylaws to allow sovereign wealth funds to invest in clubs.

Founded by former AOL Vice President Ted Leonsis, Monumental also houses an assortment of eSports teams, local television and radio networks.

QIA said on Monday, “As one of the largest integrated sports and entertainment companies in the country, MSE’s platform provides unique opportunities and scalability for growth and partnerships.”

Qatar, one of the world’s largest exporters of liquefied natural gas and one of the richest countries per capita, has invested heavily in sports over the past two decades, culminating in hosting the soccer World Cup last year .

The Gulf state has also owned French football club Paris Saint-Germain since 2011 through its Qatar Sports Investment Fund.

People familiar with the monumental deal said QIA was taking a stake in the conglomerate as part of a financial transaction to gain exposure to a company with diverse assets. QIA will not get representation on the board as part of the transaction, said one of the people.

Saudi Arabia’s Public Investment Fund, the kingdom’s $650 billion sovereign wealth fund, has made waves across the sport.

The fund led a consortium that bought English football club Newcastle United in 2021 and last month announced a framework deal to combine business interests with golf’s PGA Tour. The PIF is also in talks to invest in men’s professional tennis.