Milwaukee Bucks owner Herb Kohl announced Wednesday that he has reached an agreement to sell the team to hedge fund billionaires Wesley Edens and Marc Lasry for $550 million. One of the conditions for the sale is that the team needs to be kept in Milwaukee. To that end, Kohl and the new owners have each agreed to contribute at least $100 million towards a new arena.
During Wednesday’s press conference, Kohl said he would be giving a $100 million gift towards a new arena. The new owners have agreed to contribute at least $100 million for a new arena.
The agreement to contribute that kind of cash towards a new arena should help ensure the Bucks stay in Milwaukee for the long term.
“My priority has always been and will continue to be keeping the Bucks in Milwaukee,” said Kohl via an NBA.com release. “This announcement reinforces that Milwaukee is and will continue to be the home of the Bucks. Wes and Marc agree, and they share my commitment to the long-term success of this franchise in Milwaukee.”
One of the big takeaways here is that the sale of the team at this price has to be a good sign for other NBA owners. The Bucks were valued in January by Forbes at $405 million, which was last in the league. If they sold for $550 million, then how much must the other, more attractive franchises in the league be worth?