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.