While the NBA has been acquiring equity stakes in companies since 2014, the NBA Board of Governors officially approved the NBA Equity division last December to ramp up the leagues investment activities. With this move, the NBA has official shifted away from being a passive investor and looks to become a strategic investor. To spearhead this strategic shift, the NBA hired David Lee. Lee has a decade of experience in the startup world following stints at LG Electronics and Bain & Company.
The NBA Equity primarily invests in early and growth stage companies across a variety of sports sectors. The primary sectors include equipment, technology, media and fan engagement, data analysis, apparel, betting and fantasy sports. Some notable companies that the NBA Equity has invested in include Nextiles, Sportradar, Sorare, New Era, and QuintEvents. The total value of the investments in these early growth companies is rapidly approaching $1 billion, with each NBA team owning 1/30th of the share in the NBA Equity.