When Robert Sarver announced the sale of the Phoenix Suns and Mercury, he cited the “unforgiving climate” as the reason.
An NBA inquiry determined that Sarver used racist and sexist language on the job, prompting the league to suspend him for a year and punish him $10 million. Several notable NBA players, as well as the vice chairman of the Suns, Jahm Najafi, deemed the sentence insufficient.
In his statement, Sarver said, “Whatever good I have done or could yet accomplish is outweighed by what I have spoken in the past.”
However, by selling the teams, Sarver will profit immensely.
In 2004, a company founded by Sarver named Suns Legacy Partners purchased the team for $401 million. According to Mike Vorkunov of The Athletic, the company paid $200 million in cash and assumed $201 million in debt.
According to Vorkunov, Sarver’s initial investment was “approximately” 30%, although it may have climbed to 40%.
The Suns are valued at $1.8 billion by Forbes, while Sportico lists them at $1.9 billion.
However, many feel that the Suns might surpass those figures by a considerable margin, possibly fetching a record sum. Joe Tsai, co-founder and executive vice chairman of Alibaba, broke the record for the most expensive NBA club sale when he paid $3.3 billion for the Brooklyn Nets. The recent sale of the Denver Broncos to a consortium led by Walmart heir Rob Walton for $4.65 billion is a record in professional sports.
According to Vorkunov, a sports valuation specialist predicts the Suns will sell for more than $3 billion.
Bill Simmons projected on his podcast that the Suns would sell for $4.4 billion, adding, “It’ll be beyond $4 billion.” The guest on the show from ESPN, Brian Windhorst, answered, “I do not dispute it.”
Assuming that Sarver owns 40% of the team, has no outstanding debt, and the Suns sell for $3 billion, Sarver’s ownership would be worth $1.2 billion.
Simmons predicts that if the Suns sell for $4 billion, Sarver would receive $1.6 billion.
If the transaction falls in the middle, say at $3.5 billion, Sarver would still earn a return of 773 percent. Comparatively, the S&P 500 has returned 235% over the same time span.
The Phoenix Suns and the Footprint Center for Mercury.
Kate Frese/NBAE via Getty Images
WNBA franchise values are somewhat more complicated. The Athletic claimed in June that WNBA Commissioner Cathy Engelbert stated that the combined worth of the league’s 12 franchises exceeds $1 billion. However, the Las Vegas Aces were sold to new owner Mark Davis for only $2 million.
It is considered that the Suns are a precious commodity. In 2021, they qualified for the NBA Finals with a lineup brimming with quality. Although Phoenix is not one of the NBA’s larger TV markets, its mild climate and proximity to the West Coast make it an ideal destination. Adrian Wojnarowski of ESPN claimed that league-wide perception is that the Phoenix free agent market is a “sleeping behemoth.”
According to Vorkunov, the Suns have added a gambling element to their in-game experience by opening a sportsbook inside their refurbished arena, Footprint Center.
Moelis & Co., an investment firm, will supervise the sale of the Suns and Mercury, according to Sportico.