Former Dallas Mavericks Governor Mark Cuban will soon join the ownership stable of various professional sports teams across the NFL, MLB, and NBA. The first fund for his new private equity group, Harbinger Sports Partners, will cap out at $750 million, as first reported by Bloomberg. It aims to wrap up fundraising by 2027.
Cuban and company will deploy between $50 million to $150 million into each investment, setting the debut fund up for between five and 15 assets. The group is targeting ownership stakes of up to 5 percent in each enterprise.
Joining Cuban, who is serving as general partner, are Steve Cannon, former CEO of AMB Group—the parent company of the Atlanta Falcons—and Rashaun Williams, a venture capitalist and limited partner in the Falcons. Cannon will be the firm’s CEO and Williams will serve as chief investment officer.
It’s a different approach from other big investors in the space, such as Dallas-based Arctos Partners, which typically invests at minimum 5 percent. It holds a 17 percent share in the Sacramento Kings, 10 percent stake in the Buffalo Bills, and 12.5 percent stake in Paris Saint Germain.
RedBird Capital is another major local player that prioritizes larger stakes. It wholly owns European soccer club AC Milan, owns 11 percent of Fenway Sports Group (owners of the Boston Red Sox, Liverpool FC, and the Pittsburgh Penguins), and has a 24 percent stake in the Alpine F1 team.
When asked what differentiates his group from those two competitors, Cuban simply said, “We can move quickly.”
Harbinger plans to hold its assets for at least seven years, but no more than 10. Cuban told D CEO he won’t speculate on what he expects to be a healthy return on investment over that period, but it’s no secret that sports valuations have boomed over the last half-decade.
Take these franchises for example:
Golden State Warriors
Fund: Arctos PartnersLeague: NBAYear Arctos invested: 2021Valuation at the time: $4.7 Billion2024 Valuation: $8.8 Billion
Washington Wizards
Fund: Qatar Inv. Authority
League: NBA
Year QIA invested: 2023Valuation at the time: $2.5 Billion
2024 Valuation: $4.1 Billion
Los Angeles Dodgers
Fund: Arctos Partners
League: MLB
Year Arctos invested: 2022Valuation at the time: $3.6 Billion
2024 Valuation: $5.45 Billion
Boston Red Sox
Fund: RedBird Capital
League: MLB
Year RedBird invested: 2021Valuation at the time: $3.3 Billion2024 Valuation: $4.5 Billion
Inter Miami CF
Fund: Ares Management
League: MLS
Year Ares invested: 2023Valuation at the time: $586 Million
2024 Valuation: $1.03 Billion
Portland Timbers
Fund: Arctos Partners
League: MLS
Year Arctos invested: 2022Valuation at the time: $635 Million
2024 Valuation:$660 Million
Pittsburgh Penguins
Fund: RedBird Capital
League: NHL
Year RedBird invested: 2021Valuation at the time: $650 Million
2024 Valuation: $1.47 Billion
Washington Capitals
Fund: Qatar Inv. Authority
League: NHL
Year QIA invested: 2023Valuation at the time: $1.2 Billion
2024 Valuation: $1.86 Billion
In late 2023, Cuban sold off his majority ownership stake in the Mavericks to the Adelson family for $3.5 billion. He still owns 27 percent of the team, but has no decision-making power. Cuban purchased his stake from Ross Perot Jr. in early 2000 for $280 million.
Eric Campbell, former chief investment officer for Value Investment Group, will serve as Harbinger’s managing director.
“This is more than just capital,” a LinkedIn post by the firm read. “it’s insider access, strategy, and operational expertise coming together to shape the future of sports investment.”
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Ben Swanger
Ben Swanger
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Ben Swanger is the managing editor for D CEO, the business title for D Magazine. Ben manages the award-winning publication