June 7, 2023

Marc Lasry, the billionaire co-founder of Avenue Capital Group, stated he expects investments in upstart sports activities leagues like pickleball could provide a better fee of return to buyers than NBA groups.

“There’s huge alternatives in sports activities — however I believe these alternatives are in smaller groups,” Lasry stated Wednesday in an interview on Bloomberg Tv, noting they might be in Europe and Asia.

Lasry agreed to promote his 25% stake within the Milwaukee Bucks this 12 months in a transaction that values the Nationwide Basketball Affiliation staff at about $3.5 billion. He stated that whereas he thinks valuations within the league will proceed to rise, it was the “proper time to promote.”

Lasry, 63, has stated he plans to boost a sports activities fund that would look to accumulate stakes in groups and adjoining sports activities companies. He purchased a Main League Pickleball staff together with former tennis star James Blake for $100,000 earlier than the league launched in 2021.

“At present it’s $10 million,” he stated within the interview. 

He stated he doubts the Bucks will improve in worth at the same fee over the subsequent 5 to 10 years.

Lasry, whose New York-based agency focuses on distressed debt, stated that Avenue Capital is benefiting from regional banks curbing lending by having the ability to provide personal credit score loans at greater rates of interest. 

Nonetheless, he stated he finally expects a light recession. 

“You’re going to have extra bankruptcies, you’re going to have extra issues,” he stated. “That’s why the Fed goes to decrease charges. They’re going to should.”