The NBA and the Walt Disney Co. are nearing a deal that has the entertainment giant buying a minority stake in the league’s nascent NBA China entity, the Sports Business Journal reports.
Sources close to the deal said that the NBA’s current plan is to sell less than a 10 percent share in NBA China to Disney. The next step will be for the league to sell another small stake to a Chinese-based company to foster local investment. It is possible that the league could sell off additional stakes in NBA China.
The dollar value of Disney’s expected investment is not known. Goldman Sachs, which has been hired by the league to advise on its China business, estimates the value of NBA’s China operations at up to $2 billion, sources say.
Neither Goldman Sachs nor the NBA would comment on the possibility of a sale. Disney did not return calls seeking comment.
