Report: NBA considering making limited team ownership more accessible

The NBA is considering the creation of an investment vehicle that would allow more parties to purchase minority shares of individual teams, according to a league memo cited by Bloomberg's Scott Soshnick.

Owners were asked in August to respond with feedback by Wednesday, with the matter set to be discussed at a Sept. 20 Board of Governors meeting.

The impetus for the idea is apparently to attract a larger number of investors in an era when team valuations have skyrocketed beyond the reach of most. Joseph Tsai recently paid a reported NBA-record $2.3 billion to take full control of the Brooklyn Nets. That came two years after Tilman Fertitta paid $2.2 billion for the Houston Rockets.

Many professional sports teams have limited partners (LP). LP ownership stakes are often discounted because many don't include a board seat or a voice in team governance. One notable example of this is rap mogul Jay-Z, who once held a 0.15% stake in the Nets, which was worth a reported $350,000 when he sold it in 2013.