The San Antonio Spurs logo appears before their game against the Golden State Warriors during Game 3 of the first round of the 2018 NBA Playoffs at AT&T Center in San Antonio, Texas on April 19, 2018.
Noah Graham | National Basketball Association | Getty Images
Businessman Paul Viera is increasing his stake in the San Antonio Spurs from 5% to 11% as NBA valuations continue to climb and the team's assets become more attractive to investors, CNBC reported.
About two weeks ago, Viera, founder and CEO of Atlanta-based investment firm Earnest Partners, acquired food services company Aramark's remaining stake in the Spurs at a deep discount, according to two sources. The deal values the team at $2.5 billion. People familiar with the deal spoke on condition of anonymity to discuss non-public information. When fractional team owners purchase small portions of their teams, they can receive significant discounts, thereby reducing their control over decision-making.
In May last year, Vieira purchased 5% of the Spurs for an undisclosed enterprise value. but Aramark 2023 Annual Report It said it sold part of its stake in the Spurs for $98.2 million in cash, resulting in a pre-tax loss of $1.1 million in fiscal 2023.
The Spurs' majority owner is Peter Holt, managing partner of Spurs Sports & Entertainment, which also operates the team's arena, Frost Bank Center. The Holt family joined the Spurs ownership group in 1996. McCombs family and two-time NBA champion David Robinson, who played for the Spurs from 1989 to 2003.
Paulo Vieira, San Antonio Spurs investor.
Courtesy: NBA
The Spurs have won five NBA championships but haven't made the playoffs since 2019. Emerging superstar Victor Wembanyama began to change the team's basketball and financial trajectory.
NBA teams are hot assets, thanks in large part to the league's new leagues $76 billion, 11-year media deal.
Just two weeks ago, former Milwaukee Bucks star Junior Bridgeman purchased the Bucks at a 10% preferred limited discount for an enterprise value of $3.4 billion (equity plus net debt). The deal values the team at $4 billion, $800 million more than the company's valuation. The club's valuation was reached when Marc Lasry acquired 25% of his shares.
Sports bankers told CNBC that the Spurs and Bucks' controlling stakes are worth about $4 billion.
Bridgeman and Vieira also add to the growing number of diverse owners in professional basketball.
The NBA is trying to increase the number of owners who are people of color or former NBA players.
Former players with minority team stakes include: Grant Hill of the Atlanta Hawks; Anfernee “Penny” Hardaway of the Memphis Grizzlies; Robinson with the Spurs; Dwyane Wade of the Utah Jazz; Avery Ott Perry with the Grizzlies; and Michael Jordan with the Charlotte Hornets.
All eyes now turn to the Boston Celtics. Weeks after winning the NBA Finals, team co-owner Wyc Grousbeck announced he would sell his stake in the team in July.
The Grousbeck family is in the market for a controlling stake in the Boston Celtics, and sources told CNBC they expect the defending NBA champion team to be worth between $5.5 billion and $6 billion. In 2002, Grousbeck purchased the Celtics for $360 million.
The NBA declined to comment on Vieira's investment in the Spurs. Aramark and Earnest Partners did not respond to emails from CNBC about the Viera investment.
Revealed: NBCUniversal, the parent company of CNBC, is one of the partners in the NBA's new media rights deal.