Qatar's sovereign wealth fund buys five percent stake in parent company of the Washington Wizards

A person with knowledge of the sale says the Qatar Investment Authority is buying a roughly 5% stake of Monumental Sports & Entertainment, the parent company of the NBA's Washington Wizards, NHL's Washington Capitals and WNBA's Washington Mystics, as part of a $4.05 billion deal.

The person spoke to The Associated Press on condition of anonymity Thursday because the agreement had not been announced.

It is believed to be the first time the government of Qatar is investing in U.S. professional sports. Sportico first reported the transaction, saying it is the first time any sovereign wealth fund has bought into ownership of an American team.

Qatar last year hosted soccer's World Cup for the first time, helping FIFA reach a record revenue level because of booming ticket and hospitality sales.

Ted Leonsis is managing partner and chairman of Monumental, which lists 20 other partners on its website, including Laurene Powell Jobs and Washington Nationals owner Mark Lerner.

Qatar is purchasing a five percent stake in Monumental Sports and Entertainment

Monumental owns the Washington Wizards of the NBA and the Washington Capitals of the NHL

The company also owns the Capital City Go-Go of the NBA G League and recently took over the media outlet formerly known as NBC Sports Washington, now Monumental Sports Network.

In a statement to The Athletic, NBA spokesperson Mike Bass said, 'In November 2022, the NBA Board of Governors decided to permit passive, non-controlling, minority investments in NBA teams by institutional investors, including university endowments, foreign and domestic pension funds, and sovereign wealth funds, subject to a set of policy guidelines adopted at that time.

'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. 

'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.'

A source within the NHL told The Athletic that the league has not 'precluded investment by a sovereign wealth fund' and they're allowed to own a team as long as it's approved by the league's Board of Governors. They added that a fund is capped at 20 percent ownership of a team. 

This is the first time in American sports history that a foreign country's investment fund has purchased a stake in a team.

MORE TO FOLLOW