Kevin C. Cox/Getty ImagesLatest example: Back in December 2020, the Miller family80% of the Utah Jazz to Ryan Smith in a deal that valued the NBA team at $1.66 billion. Keeping a minority stake has proved to be a clever move, according to sports bankers. Private-equity firm Arctos Sports Partners and another investor have now combined to buy a roughly 10% stake from the Miller family, the bankers say, in a transaction that values the Jazz at about $2.
The deal values the Jazz at about nine times estimated revenue for the 2021-22 season and is in line with the revenue multiple from when Arctos increased its stake in the Golden State Warriors in December to 13%, from 5%, at a $5.4 billion valuation.are the only two sports leagues in which teams are being valued at revenue-to-enterprise values above seven. For the NFL, it’s the enormous revenue and profitability.