Professional sport team owners have been wealthy individuals or families for much of professional sports history. It is not uncommon for owners to be public figures, both within the sport and in other industries. In the swimming world, an example we commonly see is Jon Ledecky, uncle of Katie Ledecky. Jon founded a multi-million-dollar office supply company before becoming the partial owner of NHL team New York Islanders.
In the last five years, however, people like Jon Ledecky have begun to share ownership with private equity institutions. Private equity firms typically invest in or buy companies that are not publicly traded. They then work to restructure the company’s management, operations, and finances to raise the company’s value. After the value rises, the firm typically sells its stake in the company.
Private equity firms first invested in sports in the mid-2000s, buying ownership in European football clubs. No American professional sport league followed suit until an …