Sportex Considers Creating Investment Vehicle to Buy Stakes in Teams

LONDON and NEW YORK, Oct. 25, 2019 /PRNewswire/ -- Sportex, seeing the valuation of its franchise soar, is mulling the creation of an investment vehicle that would buy minority shares of individual NBA teams.

In a memo sent to owners, a copy of which was reviewed by Bloomberg News, the league says it's exploring the potential formation of, "A new capital vehicle that could purchase passive, minority ownership interests across multiple NBA teams."

The structure and terms haven't been discussed yet but according to the August 5th 2019 memo, the matter would be discussed at the November 20th 2019 owners meeting in New York.

This follows the successful launch of a private NBA trading fund in the United Kingdom by the sport investment company Sportex. Sportex who are able to place trades on basketball games with an accuracy of over 80% have seen a massive influx of private investment prior to the launch of their NBA fund in the United Kingdom.

A Sportex spokesperson Tracey Adams said recently, "Launching the fund in the UK was always going to be a stepping stone to eventually launching this fund in the USA. The NBA is close to the hearts of the American public and we can think of no better way to announce entering the US market than with this fantastic fund which has been tried and tested for 6 years before any private investors came onboard."

It seems seen this successful launch in the UK and is now offering an investment opportunity of their own, by allowing fans to actually invest in the NBA.

"This vehicle would provide additional liquidity for the sale of team ownership interests, by providing access to a new pool of long-term investors that do not currently have access to team ownership opportunities."

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