The NHL became the latest league to allow private equity firms to invest in teams — and two have already jumped at the opportunity.

Arctos Sports Partners is set to buy stakes in the Minnesota Wild and Tampa Bay Lightning after the NHL’s board of governors voted Thursday to change its rules to allow for institutional investors.

The new rules follow in the paths of the NBA, MLS, and MLB, which have all rewritten bylaws to allow for new ownership structures.

• NHL teams can sell up to a 30% stake to private firms.
• Individual firms can own up to 20% of a team.
• Firms can have stakes in up to five NHL teams.
• The minimum investment required is $20 million.

The league has approved the sale of an up-to-10% stake of the Wild to Arctos, per team owner Craig Leipold. Arctos has also been approved to buy an undisclosed stake in the Lightning.

Arctos’ Sports Investments

Arctos’ flagship fund topped $3 billion in October after raising $2.1 billion. The firm has a 17% stake in the NBA’s Sacramento Kings at a $1.8 billion valuation, as well as a 5% stake in the Golden State Warriors at a $5.5 billion valuation.

It also holds stakes in Fenway Sports Group and the Premier Lacrosse League.

Houston Rockets owner Tilman Fertitta and the SPAC that was to take his company public have decided to call off the merger.

Fertitta Entertainment had agreed to go public by merging with FAST Acquisition Corp. in a deal valuing the combined company at $8.6 billion. The company owns Golden Nugget Gaming and restaurant chain operator Landry’s.

The deal had an unusual number of twists and turns for a SPAC merger.

• The two sides initially linked up in February on a deal that valued the combined company at $6.6 billion.
• It was expanded in June to include additional hospitality and entertainment companies, adding $2 billion to the company’s valuation.
• Earlier this month, Fertitta Entertainment sought to terminate the deal because it had not been completed by its Dec. 1 deadline. 
• FAST sought to force the deal to go through, saying the delay was because Fertitta Entertainment had failed to produce required documents.

FAST Still Looking to Deal

Fertitta Entertainment will pay up to $33 million to extract itself from the deal. Part of that sum is contingent on whether FAST goes on to merge with another company.

FAST raised $200 million in an IPO in August 2020.

Lululemon reported third-quarter earnings Thursday, posting a 30% year-over-year net revenue increase to $1.5 billion. Net income jumped from $143.6 million to $187.8 million.

Revenue in North America rose 28%, and international revenue increased 40%. The athleisure company saw total sales increase 27%, opening 18 new stores during the quarter for a total of 552 in operation. 

Lululemon’s men’s business grew 44% from the same period last year, and the company aims to double the division by 2023.

Despite the overall earnings jump, Lululemon’s $500 million acquisition of high-tech fitness brand Mirror isn’t seeing the same success.

• The company cut its outlook for the brand’s sales to between $125 million and $130 million, a significant decline from the previous estimate of up to $275 million.
• A group of Lululemon employees — past and present — told Business Insider that the two brands were struggling to integrate. Mirror’s CEO Brynn Putnam resigned in September.
• Mirror’s machine, normally $1,495, is currently on sale for $995.

Effects of COVID-19

CFO Meghan Frank says the company also continues to navigate ongoing supply chain issues with COVID-19 variants potentially leading to store closures.

Still, the company raised its revenue forecast to between $6.25 billion and $6.29 billion, up from an earlier projection of $6.19 billion to $6.26 billion.