The FIFA World Cup is not over yet, but there are already signs of Qatar’s growing interest in basketball.
Two venture capital companies, Thiel Capital and Shasta Ventures, have made a $3bn (AED11 billion) bid to buy the Phoenix-based Suns and Mercury basketball teams.
Phoenix Suns are part of the National Basketball Association (NBA), while Phoenix Mercury compete on the Women’s National Basketball Association (WNBA).
Qatar sports investment
The Wall Street Journal reported that Qatar Investment Authority, the sovereign wealth fund of Qatar, is part of the bid by the Peter Thiel-owned Thiel Capital.
In September this year, following an ESPN investigation into allegations of harassment and racism by Suns owner Robert Sarver, the NBA found him guilty and slapped a $10m fine and a one-year suspension.
A week later, Sarver said he had begun the process to sell both franchises.
In a statement, Sarver said: “As a man of faith, I believe in atonement and the path to forgiveness. I expected that the commissioner’s one-year suspension would provide the time for me to focus, make amends and remove my personal controversy from the teams that I and so many fans love.
“But in our current unforgiving climate, it has become painfully clear that that is no longer possible – that whatever good I have done, or could still do, is outweighed by things I have said in the past. For those reasons, I am beginning the process of seeking buyers for the Suns and Mercury.”
Mercury are three-time WNBA title winners (2007, 2009 and 2014), while the Suns have reached three finals (1976, 1993 and 2004 ), but never won a championship.
The 2004 Suns team, which included Steve Nash, Shawn Marion and Amar’e Stoudemire, was considered one of the best of that time.
Qatar Investment Authority has massive interest in sport portfolio. Qatar Sports Investment (QSi), an affiliate of QIA formed in 2004, fully owns Paris Saint-Germain and also 21.67 percent share in Portuguese Primeira Liga club, SC Braga.
The bid was submitted by Jack Selby, managing director of Thiel Capital, and Jason Pressman, managing director of Shasta Ventures.
The newspaper said that the two bidders met with Suns management on Wednesday. Second-round bids are due in January.
Earlier this month Arabian Business reported that the NBA is to let sovereign wealth funds, pensions and endowments acquire passive stakes in its teams, opening up to investors who manage assets that by some estimates exceed $30tn.
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