The National Hockey League's Tampa Bay Lightning is expected to sell a minority stake to a private equity group, Arctos Sports Partners, for a figure valuing the franchise at $1.4 billion, according to a report by Sportico.
The valuation will be a record for an NHL team sale, surpassing the $1 billion valuation of the Toronto Maple Leafs in 2012 and the Canadian investor Michael Andlauer's recent agreement to buy the Ottawa Senators for nearly $1 billion.
The Sportico report says Arctos is likely paying a limited-partner discount of around 20%.
DON'T MISS: Ryan Reynolds and Snoop Dogg Miss on Billion-Dollar Ownership Stake
The deal still needs to be approved by the league, and Sportico reports that a waiver was require to complete the deal. That's because the firm is looking at exceeding the ownership-cap rules that the league has instituted for private equity.
The NHL allows for single firms to own a maximum of 20% non-voting minority stakes in as many as five franchises. Arctos had already invested in the Lightning in 2021, alongside the Minnesota Wild. The firm also has interests in the Pittsburgh Penguins and New Jersey Devils via a stake in Fenway Sports Group and Harris Blitzer Sports & Entertainment.
More Sports Business:
- The Saudi Multi-Billion Dollar Investment in Global Sports Explained
- How the NBA Finals Ratings Impact the Future of the League
- ESPN Gets Closer to a Move That Will Kill Cable
Prior to this sale, Sportico valued the Lightning at $910 million in 2022.
The move illustrates the wave of private equity firms entering major sports leagues, with the National Basketball Association opening up its ownership rules in 2020 and other leagues -- like Major League Baseball and Major League Soccer -- allowing minority investments from firms similar to the NHL.
The National Football League, the largest in terms of revenue and average team valuation, still prohibits this practice.
