Adelman, who is chairman of the development company in charge of the 76ers’ new arena project, is buying a majority of Rubin’s nearly 10% stake in Harris Blitzer Sports & Entertainment, according to people familiar with the transaction. The rest of Rubin’s equity, one of the people said, will be divided among HBSE principals Josh Harris and David Blitzer, and some other LPs.
While specific financial terms weren’t provided, HBSE was valued at approximately $2.5 billion in the transaction, according to multiple sources, less than the roughly $3 billion ascribed to it when private equity firm Arctos Sports Partners bought into HBSE earlier this year. Sportico values the 76ers at $2.67 billion, and the Devils at $750 million.
Adelman is CEO of Campus Apartments, founder of Darco Capital and co-founder FS Investments. In July he was appointed chairman of 76 Devcorp, which will develop the privately funded multipurpose arena at an expected cost of nearly $1.3 billion.
“As part of HBSE’s long-term growth plan, we are aligning and consolidating our investment group to maximize future opportunities,” HBSE said in a statement. “To that end, in addition to his role as Chairman of 76 Devcorp, Philadelphia native David Adelman is now a limited partner at HBSE.”
Rubin, whose Fanatics business is growing into trading cards and sports betting, was the third-largest HBSE shareholder after Harris and Blitzer. He announced in June that he was selling his shares.
HBSE’s portfolio includes the Prudential Center—home of the Devils, a few minor league teams, esports assets and an innovation lab. Harris and Blitzer also separately pursue their own personal sports opportunities—Harris was a finalist to purchase the NFL’s Denver Broncos earlier this year, while Blitzer recently closed on a significant minority stake in MLB’s Cleveland Guardians.
The two also hold equity in English Premier League club Crystal Palace. Adelman is already an investor in Crystal Palace. He is also a partner in minor league baseball’s Scranton/Wilkes-Barre RailRaiders, in which Blitzer is also an investor.