Arctos Secures Ownership Stakes in NHL's Tampa Bay Lightning and Minnesota Wild
Arctos Sports Partners Expands Sports Portfolio with NHL Teams
Arctos Sports Partners, a leading sports investment fund, has made significant strides in expanding its portfolio by acquiring minority stakes in professional sports franchises across North America and Europe. The latest additions to their roster are the Minnesota Wild and Tampa Bay Lightning, two NHL teams.
According to the league's rules, private equity funds are allowed to purchase non-voting minority stakes in a maximum of five different teams, with a maximum of 20% ownership in each team. The NHL has approved Arctos to purchase up to 10% of the Minnesota Wild, and Craig Leipold, the team's owner, has confirmed the sale. Leipold assured that the sale will not affect the team's management or daily operations.
The Tampa Bay Lightning, another team now owned by Arctos, was valued at $805 million with projected revenue of $161 million for the 2021-22 season. Under the leadership of hedge funder Jeff Vinik, the Lightning has played a significant role in the city's $3.5 billion Water Street development, which includes office space, retail, residential, and medical buildings.
Arctos Sports Partners, co-founded by private equity veteran Ian Charles and former MSG CEO David "Doc" O'Connor, has approximately $2.9 billion in assets under management. They have made over a dozen investments, including the Golden State Warriors, Sacramento Kings, Fenway Sports Group, parent of the Boston Red Sox, Liverpool FC, and the Pittsburgh Penguins.
The Minnesota Wild, owned by Arctos, was valued at $785 million with projected revenue of $175 million. Arctos' strategy aligns with the broader trend of private equity and institutional investors increasingly participating in multi-team ownership structures to diversify and enhance value across leagues and geographies.
In a recent move, Arctos Sports Partners closed its second fund, Arctos Sports Partners Fund II, with over $4.1 billion in capital. This fund will continue investing broadly in sports franchises and related assets, focusing on opportunities with significant upside and growth potential.
Meanwhile, Austin FC's valuation has crossed $900 million, with new investors joining the cap table, signaling a growing trend of investment in professional sports teams. As Arctos Sports Partners continues to expand its portfolio, it is poised to play a significant role in shaping the future of sports ownership and management.
- Arctos Sports Partners, with a focus on investing in multiple sports franchises, has recently added the Minnesota Wild and Tampa Bay Lightning to its portfolio, signifying its expansion into the real estate business, considering the Water Street development associated with the Tampa Bay Lightning.
- The acquisition of minority stakes in NHL teams such as the Minnesota Wild and Tampa Bay Lightning by Arctos Sports Partners indicates a shift towards finance and business in the sports industry, with these teams projected to yield significant revenue and potential for growth.
- With its extensive portfolio now including teams like the Minnesota Wild and Tampa Bay Lightning, Arctos Sports Partners strategically maneuvers in the world of sports investing, aiming to diversify and enhance value across leagues and geographies, similar to investments in other sports franchises like the Golden State Warriors, Pittsburgh Penguins, and Boston Red Sox.
