Jeffrey Vinik, owner of the Tampa Bay Lightning.
Adam Jeffrey | CNBC
The Tampa Bay Lightning’s ownership group is expanding.
Vinik Sports Group, owned by billionaire investor Jeff Vinik, is selling a portion of its National Hockey League teams to a group of investors led by Doug Ostrober and Mark Lipschultz.
Terms of the deal were not disclosed, but previous reports indicated the valuation was close to $2 billion. Based on the team’s valuation at the time of its sale to Vinik in 2010, the deal represents approximately 18% compound annual growth.
The deal was approved by the NHL’s Board of Governors on October 1 and is effective immediately, according to a news release. Vinik will retain control of the team following the acquisition and will remain as the team’s governor for the next three years. At that time, the initiative would shift to Ostrover and Lipschulz.
Private equity is rushing to buy stakes in U.S. professional sports teams Most recently, National Football League owners decided to allow select private equity firms to buy up to 10% of their teams. I voted for it.
Tampa Bay Lightning center Steven Stamkos, 91, hoisted the Stanley Cup after the Lightning defeated the Dallas Stars in Game 6 of the 2020 Stanley Cup Finals at Rogers Place.
Perry Nelson | USA TODAY Sports | Reuters
As valuations among professional sports teams soar, trading becomes more intense.
As part of the Lightning deal announced Thursday, Arktos Partners will also sell a portion of its ownership and remain a minority shareholder.
Mr. Ostrober and Mr. Lipschulz are co-CEOs of Blue Owl Capital, an asset management company that manages sports strategy funds. They were introduced to Vinnik through their relationship with Arctos.
Arctos has extensive experience investing in the sports sector and is one of the private equity investors recently approved to invest in the NFL. The firm is closing a second sports-focused fund with $4.1 billion in total commitments earlier this year, which holds about 20 shares in sports and esports teams.
The Lightning have won two Stanley Cup championships and three overall since 2020. Vinik acquired the Lightning in 2010 for $110 million and has since invested billions of dollars in real estate development in downtown Tampa Bay.
