The NBA recently approved a rule change that allows sovereign wealth funds to buy stakes in teams.
An arm of a foreign government can now buy into the NBA, which is not yet permitted in any other major league in the United States.
Under the just-adopted policy, a foreign fund could buy up to 20 percent of a team.
These sovereign funds are broadly found in oil-rich countries of the Middle East. These funds have helped increase the value of European soccer clubs with their purchases of Manchester City, Paris Saint-Germain and others.
Currently, there are no sales to sovereign funds under review by the NBA.
With franchise valuations continuing to soar, there could be fewer individual buyers who can afford such price points and opening up new sources of capital will help mitigate that issue.
