![Alexander Holtz of the Devils](https://cdn.statically.io/img/www.sportico.com/wp-content/uploads/2024/06/GettyImages-2148539075-e1718402507564.jpg?w=1280&h=721&crop=1)
During the player lockout of 2005, Boston private equity banker Stephen Pagliuca had an audacious idea: His firm, Bain & Co., would buy the whole NHL puck, stick and blocker for $4 billion. Owners ultimately declined the offer, but it was the first sign PE saw gold in sports teams.
In the years since, the value of the NHL has only gone up: The average NHL club is worth $1.31 billion according to the latest Sportico valuations. That makes the 32-franchise league worth $41.9 billion, a jaw-dropping 948% increase over Pagliuca’s offer 20 years ago.
Such returns hold a tremendous appeal to private equity funds, which seek to beat the stock market for their investors by finding assets that can provide outsized growth.
To sports team owners and leagues, the appeal of PE is increasing because with billion-dollar-plus team values comes the problem of a shrinking pool of individuals rich enough who want to pay a healthy portion of their fortunes for a team. The problem is even more acute when trying to find people who want to buy a minority stake of a franchise, which comes with few perks beyond pride of (partial) ownership.
Is private equity allowed to own NHL teams?
Yes. PE funds can’t own a majority share in an NHL club, but they can own minority stakes.
In 2021, the NHL joined most of the other North American leagues in voting to allow institutional investors in franchises. League rules are similar to their peer leagues:
• A fund can purchase up to 20% of a single NHL team.
• One fund can own equity in up to five clubs.
• The minimum investment a fund must make is $20 million.
• A team may not sell more than 30% of its stock to private equity.
Which teams have private equity investors?
• New Jersey Devils (Arctos)—Arctos is invested through part ownership of the Devils’ parent company, Harris Blitzer Sports & Entertainment.
• Minnesota Wild (Arctos)
• Pittsburgh Penguins (Arctos, RedBird Capital)—Both funds are invested in the team through part ownership of the Penguins’ parent company, Fenway Sports Group.
• Tampa Bay Lightning (Arctos)
Since private equity ownership isn’t required to be disclosed, it is possible other teams have fund investment and that there are other funds invested in listed franchises.
What other types of funds can and can’t own NHL teams?
The NHL does allow other types of funds to have ownership in teams, at least indirectly: In 2023, the Ontario pension fund OMERS bought a minority stake in Maple Leaf Sports & Entertainment, which owns the Toronto Maple Leafs, among other sports teams.
It’s not clear if other types of funds, like university endowments and sovereign wealth funds, are explicitly permitted or barred in the NHL, as some leagues specify. But in every case, the NHL can approve or deny a stake of any ownership sale as its team owners see fit.
A representative for the NHL didn’t reply to a request for comment.