CORRECTION: The QIA purchase is part of a $4.05 billion deal
The Qatar Investment Authority (QIA) plans to purchase a minority stake of Monumental Sports & Entertainment (MSE), the parent company of the NBA’s Washington Wizards and NHL’s Washington Capitals, becoming the first sovereign wealth fund to invest in a U.S.-based sports team.
Sources told Sports Business media outlet Sportico that QIA is purchasing a five percent stake of MSE, which also includes WNBA franchise Washington Mystics, Capital One Arena, and NBC Sports Washington, as part of a $4.05 billion deal.
Sources also said that Ted Leonsis, the managing partner of MSE, will retain all operational control in the deal, meaning that QIA will not have a board seat, nor any voting power within the organization.
In a statement sent to The Hill, NBA spokesperson Mike Bass said that the league’s board of governors decided in November 2022 to approve private equity investments in the league “by institutional investors, including university endowments, foreign and domestic pension funds, and sovereign wealth funds,” saying that all investments will require league review.
“The NBA Board is currently reviewing a potential investment by QIA in Monumental Sports & Entertainment, the parent company of the Washington Wizards, among other sports properties,” Bass told The Hill. “In accordance with the policy, if approved, QIA would have a passive, minority investment in the team, with no involvement in its operations or decision-making.”
The NHL has already approved the MSE/QIA transaction, Sportico reported.
The move comes as sovereign money has had a great influence on sports in the past few years. Qatar was the host country of the FIFA World Cup last year, though the country faced criticism from many for its human rights record.
The PGA Tour recently announced its agreement to merge with Saudi-backed rival LIV Golf in order to create a larger organization.
LIV, founded in 2021, is backed by the Saudi Arabia Public Investment Fund (PIF), an entity led by Saudi Crown Prince Mohammed bin Salman. LIV has also come under scrutiny for Saudi Arabia’s controversial record of human rights abuses.
—Updated Friday at 6:54 a.m.