Daily Local News (West Chester, PA)
Durant closes deal for minority ownership stake in club
The Philadelphia Union made official Monday that Kevin Durant is joining the club’s ownership group.
The deal, per the club, is to bring Durant on with a 5 percent stake in the club, with an option to purchase an additional 5 percent in the future. The arrangement also includes a “unique and expanded partnership” with Thirty Five Ventures, the company started by Durant and Rich Kleinman, that “will focus on growing the Union footprint in the sports world, working closely with the Union on marketing opportunities, and expanding the Union’s community outreach in conjunction with the Kevin Durant Charity Foundation (KDCF).”
“They broke everything down, from what they wanted to do in the community, to the campus that they want to build in Chester, how they want to impact the youth leagues even more, and putting it all back in a community that is predominantly black,” Durant told ESPN. “It just made sense.”
“The partnership between
Kevin and the Philadelphia Union is based on a set of shared values and philosophies,” Union majority owner Jay Sugarman said in a team statement. “We want to be known as an innovator in our league and a team that is never satisfied with the status quo. Kevin brings us unique perspectives as a person, as a champion, and as a sports icon. His work with the Kevin Durant Charity Foundation has shown he has a community-first mindset that resonates with our club’s DNA. Combined with his competitive drive and forwardthinking mentality, we believe Kevin adds a key piece in reaching our ambitions for the club.”
News of the deal was first reported two weeks ago by the Sports Business Journal. Durant’s investment has been in the works since late last year, but an official announcement has been delayed by the coronavirus pandemic.
The deal, according to ESPN, values the Union at north of the $325 million expansion fee required of MLS’s new Charlotte franchise, the 30th MLS franchise. Durant’s buy-in, then, costs at least $16 million.
Durant, who signed with the Brooklyn Nets last offseason but is out for the 2019-20 season while rehabbing a torn Achilles’ tendon, had previously attempted to buy a piece of D.C. United. But when talks broke down, Sugarman and Durant connected through mutual business partners to vet his interest in the Union.
“We are excited to bring our expertise to this partnership and help expand the Philadelphia Union’s footprint not only in soccer, but the sports world as a whole,” Kleinman said.
“We set out to create a different type of partnership that isn’t simply a passive ownership stake, but real involvement across marketing and business development from the whole Thirty Five Ventures team.”