The Milwaukee Bucks NBA franchise will stay in Milwaukee, but under new ownership. Longtime owner Herb Kohl will reportedly announce later today that he has sold the team to hedge fund managers Wesley Edens and Marc Lasry. The deal is valued at $550 million.
The news was first reported by ESPN before the team’s official announcement. Sources said that the team is waiting on official approval from the league offices.
Kohl, a former U.S. Senator, has owned the team since 1985, when he bought it for $18 million. ESPN’s sources said that he ensured that the new owners will keep the team in the city. He will still own a significant percentage of the team, but has given up controlling interest.
According to CBS News, the NBA has said that a new arena will have to be built for the Bucks to stay put. However, people there haven’t been ready to pour more taxes into a new building for a team that has repeatedly fallen short over the decades.
The Bucks have one of the lowest total salaries for players in the NBA and will have the worst record in the league this season. Forbes has valued the team as dead-last in the league at just $405 million. By comparison, large market teams like the New York Knicks, Los Angeles Lakers and Chicago Bulls are all valued at over $1 billion.