Numerous sports finance sources say they were surprised by today’s news that the Larry H. Miller Group has sold the Jazz to Qualtrics co-Founder Ryan Smith. A source confirmed the reported sale price of $1.66B, and multiple people said that figure reflects no COVID-related discount. Smith will now own a majority stake in the team, Vivint Smart Home Arena and G League Salt Lake City Stars. The Miller family will retain a minority stake. The Jazz also have a management agreement with the Triple-A PCL Salt Lake Bees, which will remain owned by the Miller family.
Sources could not say why the Millers chose to sell the Jazz, which were put into a legacy trust in '17 to keep the team in Utah long-term. “I’m fully convinced that, with this sale, the objectives of that trust will be honored,” said Jazz Owner Gail Miller at a press conference held earlier today. Multiple sources speculated that the timing of the deal may reflect an effort to avoid potentially larger capital gains taxes should Joe Biden win the presidency next week.
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One source said the $1.66B sale price is a “very good number for a small market club that demonstrates the continued interest in the NBA.” A sports banker said that the sale price is right in line with recent transactions, given the Jazz’ market size and arena situation. The Rockets sold for $2.2B in '17, and a finance source said the NBA’s market floor was set in '18 when Grizzlies owner Robert Pera bought out minority partners at a $1.3B valuation.
Smith has also recently expressed interest in buying Utah Soccer Holdings, parent of Real Salt Lake, Rio Tinto Stadium and other soccer team assets. Early discussions for the holding company began around $500M.
