Qatar’s sovereign wealth fund ‘buys five percent stake in parent company of the Washington Wizards’

A person with knowledge of the sale says the Qatar Investment Authority is buying about a 5% stake in Monumental Sports & Entertainment, the parent company of the NBA’s Washington Wizards, NHL’s Washington Capitals and WNBA’s Washington Mystics, as part of a $4 deal .05 billion.

The individual spoke to The Associated Press on Thursday on condition of anonymity because the agreement had not been announced.

It is believed to be the first time the government of Qatar has invested in American professional sports. Sportico first reported the transaction, saying it is the first time a sovereign wealth fund has taken ownership of a US team.

Qatar hosted the FIFA World Cup for the first time last year, helping FIFA achieve record revenue thanks to booming ticket and catering sales.

Ted Leonsis is a managing partner and chairman of Monumental, which lists 20 other partners on its website, including Laurene Powell Jobs and Washington Nationals owner Mark Lerner.

Monumental owns the NBA’s Washington Wizards and the NHL’s Washington Capitals

The company also owns the NBA G League’s Capital City Go-Go and recently acquired the media outlet formerly known as NBC Sports Washington, now Monumental Sports Network.

In a statement to The Athletic, NBA spokesman Mike Bass said: “In November 2022, the NBA Board of Directors decided to allow passive, non-controlling minority investment in NBA teams by institutional investors, including university endowments, foreign and domestic pension funds. to stand. and sovereign wealth funds, subject to a set of policy guidelines adopted at the time.

The NBA board is currently considering a possible investment by QIA in Monumental Sports & Entertainment, the parent company of the Washington Wizards, among others.

“In accordance with policy, if approved, QIA would have a passive minority investment in the team, with no involvement in operations or decision-making.”

An NHL source told The Athletic that the league has not ruled out investments by a sovereign wealth fund and they can own a team as long as it is approved by the league’s board of directors. They added that a fund is limited to 20 percent ownership by a team.

It is the first time Qatar has bought a stake in an American sports team. However, this is not the first time the Gulf state has used its financial power to influence sport in the United States.

Prior to the start of the World Cup, the Washington Post reported that Qatar Airways was becoming a major sponsor of Fox Sports’ coverage of the tournament and its production was “essentially guaranteed by the government of Qatar.”

Adam Silver spoke about the merger in golf last week, saying ‘People are too dismissive’

Last Thursday, NBA Commissioner Adam Silver spoke on “The Dan Patrick Show” about the idea of ​​state investment in American sports.

“When the Saudis invest in sports, it gets excessive attention,” Silver said in response to a question about the merger between the PGA Tour and Saudi PIF.

“Well, I don’t want to complain about that, because we want to get excessive attention. On the other hand, someone could go up there on the list. They are investors in some of our largest US companies. Some of the most famous brands have investments from them. And I also think it’s a double-edged sword.

“I hear the comments about sports washing. On the other hand, you talk about it, others talk about it. … In the same way, the World Cup – the Football World Cup, the Football World Cup – brought a huge amount of attention to Qatar.

“I think people are learning about these countries, learning about what’s happening in the world in ways they wouldn’t otherwise. So I think the media is doing their job.

“But… talking specifically about the NBA, where we’re such a global sport, I think people these days are a little too dismissive of the benefits that come from the commonality around sports.

“That with a sport like basketball – our finals are spread pretty much all over the world, the sport is played all over the world – it’s an opportunity to bring people together.”

Monumental Sports is run by Ted Leonsis, who bought the Caps in 1999 and the Wizards in 2010

In global sports, Qatar has invested heavily in various ventures over the last decade, especially football.

From the purchase of Paris Saint-Germain in 2012, to the development of the Aspire Academy, to the rumored purchase of Manchester United, Qatar has sought to entrench itself in the world’s top sports leagues.

But the increased attention it has received in its purchases has also drawn attention to the various human rights abuses the country faces.

Monumental Sports is owned by Ted Leonsis – who bought the Capitals in 1999 and bought both the Wizards and their home stadium, Capital One Arena, in 2010.