The Washington Wizards have had a fascinating past month. First, the team traded Bradley Beal to the Phoenix Suns for Chris Paul, later dealing Paul to the Golden State Warriors for Jordan Poole. The team also bid adieu to Kristaps Porzingis, sending him to Boston in a three-team deal. During the NBA Draft, the Wizards traded up a spot to select Bilal Coulibaly, who played with No. 1 pick Victor Wembanyama last season.
To cap off the wild month, part of the team is now owned by a Qatari sovereign wealth fund.
Qatar Investment Authority agreed to purchase a 5% stake in Monumental Sports & Entertainment. That's the parent company, founded by Ted Leonsis, that owns the Wizards, the WNBA's Washington Mystics, and the NHL's Washington Capitals. Monumental Sports & Entertainment also owns multiple arenas and an iceplex.
If this move is approved by the NBA, it will be the first time a sovereign wealth fund has invested in an NBA team. The valuation of the deal puts the entire enterprise at more than $4 billion.
Monumental Sports & Entertainment Owner Ted Leonsis (Scott Taetsch/Getty Images)
A year ago, this move likely wouldn't have been possible. But the NBA announced a change last November:
"In November 2022, the NBA Board of Governors decided to permit passive, non-controlling, minority investments in NBA teams by institutional investors, including university endowments, foreign and domestic pension funds, and sovereign wealth funds, subject to a set of policy guidelines adopted at that time."
The attention on sovereign wealth funds has increased over the past couple of years thanks to the ongoing battle between PGA and LIV Golf. LIV, which is financed by Saudi Arabia's Public Investment Fund, recently announced a merger with the PGA, drawing ire from fans and players — particularly the players who turned down massive offers from LIV.
The NBA still has to approve this deal, though it could be a landmark decision. The massive valuation gives owners even more leverage. They now have new sources of revenue and can point to deals with sovereign wealth funds when negotiating their valuation with other potential buyers.
Qatar hosted the 2021 World Cup and has a majority stake in Paris Saint-Germain. Qatari Sports Investments also bought a 22% stake in S.C. Braga, a Portuguese team. This is the country's first foray into the NBA, and if all goes well, we could see other sovereign funds making bids across American pro sports.
