The Tampa Bay Lightning could soon set a new record for the most expensive NHL team sale, with reports valuing the franchise at $2 billion. This would more than double the $950 million paid for the Ottawa Senators in 2023.
What Happened: The sale process of the Senators attracted several suitors including actor Ryan Reynolds and musician Snoop Dogg, before being sold to Canadian billionaire Michael Andlauer.
A Sportsnet report says the Lightning have attracted a $2 billion valuation in a sale to Doug Ostrover, co-founder and CEO of Blue Owl Capital OWL.
Current Lightning owner Jeff Vinik, who bought the team for $170 million in 2010, is expected to retain a "significant ownership stake" as part of the sale, according to the report. Vinik is also expected to maintain full operational team control for the next several years.
Vinik confirmed to Front Office Sports that sale talks have been initiated and stressed that there will "be no change in the day-to-day operations of the Lightning."
"I am very excited about what is to come for the organization and we look forward to sharing more when the time is right," Vinik said.
The Tampa Bay Lightning have been one of the dominant teams in recent years, winning back-to-back Stanley Cups in 2020 and 2021 and winning three Stanley Cups in the last 20 years.
Read Also: Madison Square Garden Sports’ Topline Climbs Amid Higher Ticket Sales, Yet Earnings Fall Short
Why It's Important: While it is Ostrover involved in the purchase of the team and not the publicly traded Blue Owl Capital, his involvement could put a spotlight on his company and also exhibit his belief in sports team ownership for future growth.
Dyal Homecourt, which is a unit of Blue Owl Capital, is a minority owner of NBA teams the Charlotte Hornets, Atlanta Hawks and Sacramento Kings. The unit also previously had a stake in the Phoenix Suns, before selling its ownership for a profit.
Dyal has league approval to buy minority stakes in numerous NBA teams, and through Blue Owl Capital is one of the few publicly traded sports team options available to investors.
The National Football League is also considering allowing minority stake sales to private equity, which could open the door for Blue Owl/Dyal to invest in NFL teams. Ostrover buying the Lightning could signal his belief that sports team ownership is a good use of capital and future valuation growth.
The other company that could benefit from the sale is Madison Square Garden Sports MSGS, which owns the NHL's New York Rangers and other sports assets.
Sportico values the Tampa Bay Lightning at $1.25 billion, ranking 103rd among North American sports franchises and 11th among NHL teams.
The $2 billion valuation would represent 160% of the Sportico valuation.
The Rangers are ranked second in the Sportico NHL team valuations at $2.45 billion. That valuation would likely rise as would other top NHL teams if the Lightning are valued at $2 billion. The latest sale could push the valuation of top teams like the Rangers and Toronto Maple Leafs closer to $3 billion.
Madison Square Garden Sports also owns the NBA's New York Knicks, which are valued at $7.43 billion by Sportico.
Valuations for the Rangers and Knicks include the Madison Square Garden arena, which is owned by Madison Square Garden Entertainment MSGE.
A sum-of-the-parts of the valuations of the Knicks and Rangers without their arena could still show upside to Madison Square Garden Sports, which has a market capitalization of $4.66 billion and enterprise value of $5.68 billion.
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