Sports investment firm Arctos Sports Partners has appointed David Levy as their senior adviser, according to an exclusive report.

In a move that could signal a surge in the sale of minority stakes in professional sports franchises, David Levy has joined Arctos Partners as a senior adviser. The announcement comes amidst the ongoing COVID-19-forced shutdown of sports, which has led to a flurry of limited partners seeking to sell their stakes.

Arctos Partners, led by Doc O'Connor and Ian Charles, specialises in taking passive, minority stakes in professional sports franchises. The firm's focus could be further bolstered with the addition of Levy, who brings a wealth of experience in the sports industry.

Levy, who previously held a similar role with The Raine Group, will assist Arctos Partners in identifying investment opportunities. His extensive background in sports, spanning over three decades at Time Warner, includes spearheading the company's sports portfolio, which encompasses the NBA, PGA, MLB, and NCAA.

Last month, Sportico reported that the ownership group of the NBA's San Antonio Spurs was selling a minority stake in the club. This move, along with the potential increase in similar sales due to the pandemic, could indicate a growing trend in the sports industry.

The sale of these minority stakes often occurs at a discount of 10% to 25% of the overall franchise value, and typically does not confer any say in franchise governance. This structure makes these investments appealing to a wider range of investors, as the risk is mitigated by the passive nature of the investment.

However, it's worth noting that the sale of college sports stakes is a legally risky move for NFL owners, as reported in a related story. This underscores the importance of careful consideration and due diligence when investing in such opportunities.

David Levy's departure from his role as CEO of the NBA's Brooklyn Nets in November, after just two months on the job, may have contributed to his availability for this new role. Prior to joining the private equity firm Armac Group as a Senior Advisor, Levy also held a similar position at the investment bank Merrill Lynch.

The value of professional sports franchises has skyrocketed over the past decade, making these investments increasingly attractive. As the sports industry navigates the challenges posed by the pandemic, the sale of minority stakes could provide a viable solution for both investors and franchise owners.

In conclusion, the addition of David Levy to Arctos Partners' team could signal a growing trend in the sale of minority stakes in professional sports franchises. As the industry adapts to the ongoing challenges, these investments could offer a promising avenue for both investors and franchise owners.

Sports investment firm Arctos Sports Partners has appointed David Levy as their senior adviser, according to an exclusive report.