FSG boast an impressive portfolio that has included Liverpool for the past 14 years, as well as being in control in another iconic sports team in the MLB’s Boston Red Sox since 2002. John Henry & Co. also completed a takeover of the Pittsburgh Penguin for a reported $900 million in December 2021, own a 50 per cent stake in NASCAR’s RFK Racing and spearheaded a consortium named the Strategic Sports Group to inject up to $3 billion into the PGA Tour earlier this year.
However, an NBA team has long been mooted as something FSG would be interested in investing in. LeBron James, one of the greatest basketballers of all time and a minority partner in the company, has stated he wants to own a team in Las Vegas when he retires.
The NBA is expected to expand its number of franchises from 30 to 32 in the coming years, with Vegas a frontrunner. Gerry Cardinale - the founder and managing partner of RedBird Capital, who hold an 11 per cent stake in FSG - revealed in December 2023 that talks with James have been held. “We’re looking at bringing an NBA expansion team here in partnership with LeBron and Fenway Sports Group,” said Cardinale at the Sports Business Journal’s Intercollegiate Athletics Forum.
“We started this project three years ago,” Cardinale continued. “The price talk on an NBA team three years ago was US$3 billion. The price talk today on an NBA expansion team is $5.5 billion to $6 billion. I’m not sure I can make that work. Maybe we’re hitting that inflexion point, and it may mean that, if we want to see a continued linear progression in these valuations, maybe it’s a different type of capital [that needs to come in].
”Maybe I’m evolved out of existence, and maybe now I’m handing the baton over to a sovereign [wealth fund] or to a lower cost-of-capital provider. It could be we’ve reached that point.”
But after the Celtics came up for sale in July by majority owner Wyc Grousbeck, FSG were linked. The recently-crowned NBA champions, who won the title for a record 18th time, are based in FSG heartland and the New York Post reported that the firm were ‘seriously considering’ a bid.
A price tag of $6 billion for the Celtics has been suggested, which would make it the most expensive NBA team in history - and second most valuable sports team behind the NFL’s Washington Commanders, who were purchased for a reported $6.05 billion in August 2023.
Kennedy, who was promoted to FSG chief executive last March along with still operating as Red Sox president, was asked if that is something that would be interested in. Per MassLive, Kennedy replied: “I don’t see it to be appropriate to talk about the Celtics today other than to say congrats on another world championship. “But that’s not on our radar right now.”
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