Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Aïda Amer/Axios

Private equity has long dabbled around the edges of professional sports, but now has its first firm dedicated to buying into teams.

Driving the news: Arctos Sports Partners has been launched by David "Doc" O'Connor, former president of Madison Square Garden Co., and Ian Charles, a longtime private equity secondaries investor.

Axios has learned from multiple sources that Arctos is raising between $1 billion and $1.5 billion for its debut fund, with $500 million already committed from backers like the Petershill unit of Goldman Sachs. The firm declined to comment, citing SEC marketing restrictions.

  • Its plan is to invest between $20 million and $300 million for passive, minority stakes in North American pro sports teams and select European soccer clubs.
  • Some of this could be via buying out minority owners, or by providing preferred equity or structured financing to control owners who are seeking some liquidity.
  • The firm quietly launched late last year, well ahead of the coronavirus pandemic, but may now benefit from price constriction and certain owners in need of financial flexibility.

O'Connor and Charles are said to have been first connected by a front office executive for the Boston Red Sox, who knew O'Connor from his time helping to launch the sports representation group at CAA and Charles via a common business partner.

The state of play: MLB late last year changed its ownership rules to permit funds to be part of team ownership groups, leaving the NFL as America’s only major sports league to still prohibit them.

  • Skyrocketing team valuations have made it increasingly difficult for part-owners to find buyers for their stakes. By permitting funds, leagues expand the potential buyer pool.

Roster: In addition to O'Connor and Charles, the Arctos team includes Joseph Nasr (ex-Stellus Capital Management, Jordan Solomon (ex-MSG), and veterans of Warburg Pincus, Fenway Sports Group, and TPG.

What to watch: Baseball is likely to be Arctos' top target, just due to its glut of small limited partners, but also expect the fund to buy into NHL and MLS teams where its fund size could make a more significant impact.

  • NBA teams and European soccer clubs are also within the fund mandate, while NFL team stakes are technically possible but would require a special league dispensation that's unlikely to be granted.
  • Don't expect to hear about the firm's deals, as it's expected to operate quietly — like a private equity secondaries investor.

Go deeper

Aug 2, 2020 - Sports

More athletes opt out as U.S. struggles with coronavirus

The Los Angeles Dodgers play against the Arizona Diamondbacks at Chase Field on July 31 in Phoenix. Photo: Christian Petersen/Getty Images

A growing number of pro athletes in the U.S. are opting out of the 2020 season, or league restarts, citing concerns related to the coronavirus pandemic.

Why it matters: The pandemic continues to disrupt the world of sports, despite many fans hoping that a return for the major leagues would spell some semblance of normalcy for other aspects of life.

Caitlin Owens, author of Vitals
2 hours ago - Health

Pfizer CEO feels "liberated" after taking COVID vaccine

Pfizer CEO Albert Bourla. Photo: "Axios on HBO"

Pfizer CEO Albert Bourla tells "Axios on HBO" that he recently received his first of two doses of the company's coronavirus vaccine.

Why it matters: Bourla told CNBC in December that company polling found that one of the most effective ways to increase confidence in the vaccine was to have the CEO take it.

Dan Primack, author of Pro Rata
2 hours ago - Economy & Business

Ripple CEO: SEC lawsuit is "bad for crypto" in the U.S.

Ripple CEO Brad Garlinghouse tells "Axios on HBO" that if his company loses a lawsuit brought by U.S. regulators, it would put the country at a competitive disadvantage when it comes to cryptocurrencies.

Between the lines: The SEC in December sued Ripple, and Garlinghouse personally, for allegedly selling over $1.3 billion in unregistered securities. Ripple's response is that its cryptocurrency, called XRP, didn't require registration because it's an asset rather than a security.