Sports-Focused PE Firm Seeks Up to $1.75 Billion for Team Stakes

After watching the value of pro-sports franchises skyrocket in recent years, owners are now confronting a harsh reality: It’s becoming harder and harder to sell passive minority stakes when they need to raise cash, especially during economic downturns.

With high valuations scaring away many potential investors, the problem has led leagues to loosen their ownership restrictions -- and created an opportunity for a new kind of private equity investor focused on acquiring limited stakes in franchises.