NHL Team, Tampa Bay Lightning, Offers Shares at a Record-Breaking $1.4 Billion Evaluation
Tampa Bay Lightning on the Verge of Record-Breaking Sale to Arctos Sports Partners
The Tampa Bay Lightning, one of the most successful franchises in the National Hockey League (NHL), is in the process of a potential sale to Arctos Sports Partners. If the deal goes through, it could set a new record for the highest valuation of an NHL team, although the exact figure has yet to be disclosed.
Arctos Sports Partners, a sports-focused private equity fund, has been growing rapidly. According to their latest disclosure, the fund's assets totaled $6.64 billion at the end of 2022, marking a 69% increase from the previous year. The fund already holds interests in the NHL's Pittsburgh Penguins and New Jersey Devils.
The proposed sale of the Lightning to Arctos requires approval from the NHL, as it exceeds the ownership cap rules for private equity. The new investment would push Arctos' stake in the Lightning beyond the 20% threshold, which is the maximum that a single fund can own in an NHL team.
The Lightning, under the ownership of former hedge fund manager Jeff Vinik, has seen significant growth in revenue and attendance. The team has made nine playoff trips over the past decade, with back-to-back Stanley Cup titles in 2020-21 and 2021-22. Vinik has also played a key role in Tampa's $4 billion Water Street development, a 56-acre project that includes office space, retail, residential, and medical buildings.
Arctos initially invested in the Lightning and the Minnesota Wild at the end of 2021. If the sale goes through, it would be the second major investment in an NHL team by the fund.
Meanwhile, another significant deal in the NHL is the potential sale of the Ottawa Senators to Michael Andlauer. Andlauer reached a deal to buy the team for nearly $1 billion on Tuesday.
The NHL's policy on private equity (PE) ownership allows funds to buy non-voting minority stakes in a maximum of five different teams. No franchise can have more than 30% of its equity owned by investment funds. Currently, the sale of the Nashville Predators to Bill Haslam is on the NHL owners' agenda, with Haslam moving from a limited partner to a controlling owner over two years.
It's worth noting that the Rogers executives are discussing the future of their $10B+ in sports assets. However, these discussions are not directly related to the Tampa Bay Lightning sale.
For the most accurate and up-to-date team valuations, sources like Forbes' annual NHL team valuations reports would be the most authoritative. Unfortunately, these reports are not included in the current search results.
- Arctos Sports Partners has interests not only in the NHL, but also in the real-estate business, with Jeff Vinik's $4 billion Water Street development being one of their investments.
- The proposed sale of the Tampa Bay Lightning to Arctos Sports Partners, if approved, could signal a move by the fund into commercial investing, beyond just sports and finance.
- While the exact figure of the record-breaking sale of the Tampa Bay Lightning has yet to be disclosed, it's expected to be a significant investment in the realm of hockey business and real estate.
- The potential sale of the Ottawa Senators to Michael Andlauer for nearly $1 billion could set a new benchmark in hockey commerce, mirroring the trend of increasing valuations observed in the NHL.
