Katten represented Marc Zahr and the Chaifetz Group as major investors in the buyer group that acquired the Portland Trail Blazers, ending an era in which the controlling interest in the team resided with the estate of Microsoft co-founder Paul Allen.
The deal underscores the continued growth of institutional and family office investment in professional sports franchises, as well as evolving deal structures and investor expectations across major leagues.
“This transaction demonstrates Katten’s ability to successfully navigate complex, high-profile deals for clients investing in professional sports franchises,” said Daniel Render, co-chair of the firm’s Sports and Sports Facilities practice. “We are grateful to Marc Zahr and the Chaifetz Group for entrusting us with this important investment.”
Zahr is co-president of Blue Owl Capital, an alternative asset management firm. The Chaifetz Group, a single-family office investment firm, previously worked with Katten on a minority investment in the San Francisco Giants.
As private equity firms and family offices expand their presence in team ownership, issues surrounding valuation, governance and exit rights are becoming central to negotiations.
“As private equity and family office continue to invest in pro sports, we can expect to see an increased focus on valuation and on defining what ‘fair market value’ means in the context of an investment,” Render said. “This is particularly true in negotiations between private equity funds and teams.”
He noted that league governance structures can add complexity, especially where leagues retain the authority to require investors to divest ownership stakes in certain situations, such as conflicts of interest or violations of league rules.
“This could potentially lead to additional disputes depending on how the concept is handled in the relevant investment documents,” Render said. “Investment funds are increasingly focused on how a potential exit would work and at what valuation.”
Render added that both teams and investors are placing greater emphasis on drafting clear provisions to reduce uncertainty.
“Both the team and investor have a vested interest in ensuring clarity and consistency in these agreements to minimize potential disputes,” he said, noting that forced sales are rare and typically occur only when leagues deem them necessary.
The Katten team advising on the deal was led by Render and included Andrew C. Lillis, Ethan Asofsky, Valentina Famparska, Morgan E. Oxner, Constance A. Fratianni, Chloe M. Custodio, Lindsey P. Robin, Cade S. Brittain and Julie Park.
Katten’s sports practice advises clients across disciplines including mergers and acquisitions, private equity, finance, real estate, tax, intellectual property and employment, representing leagues, teams, investors, financial institutions and other stakeholders across the sports industry.
