Paul Viera acquires a larger stake in the San Antonio Spurs at a discounted price.

• CNBC has learned that businessman Paul Viera is boosting his ownership stake in the San Antonio Spurs from 5% to 11% as NBA team valuations surge.
• Viera bought the additional stake from food service company Aramark.
• The league has been striving to boost the number of teams owned by minorities and ex-athletes.

NBA team valuations are rising, making them more appealing to investors, and as a result, businessman Paul Viera is boosting his ownership stake in the San Antonio Spurs from 5% to 11%, according to CNBC.

Two weeks ago, Viera, CEO of Earnest Partners, purchased Aramark's remaining stake in the Spurs at a discounted price, valuing the team at $2.5 billion, according to two sources. This discount was possible due to the fact that partial team owners can receive significant discounts when they buy small pieces of teams that give them less control over decisions.

In May 2022, Viera purchased a 5% stake in the Spurs, but Aramark's 2023 annual report reveals that it sold a portion of its stake in the Spurs for $98.2 million in cash, resulting in a pretax loss of $1.1 million during fiscal 2023.

The majority owner of the Spurs is Peter Holt, who is also the managing partner of Spurs Sports & Entertainment, which operates the team's arena, the Frost Bank Center. The Holts joined the Spurs ownership group in 1996. Other minority owners of the team include Dell Technologies CEO Michael Dell, Sixth Street Partners, the McCombs family, and two-time NBA champion David Robinson, who played for the Spurs from 1989 to 2003.

Despite winning five NBA titles, the Spurs have not made the postseason since 2019. In the 2023-24 season, the team finished last in the Southwest Division with a 22-60 record. However, rising superstar Victor Wembanyama is starting to change the team's basketball and financial trajectory.

The NBA's $76 billion, 11-year media deal has made NBA teams valuable assets.

In April 2023, the Milwaukee Bucks were valued at $4 billion, but just two weeks ago, former Bucks star Junior Bridgeman paid $3.4 billion for a preferred limited discount for 10% of the team, which valued the Bucks at $4.8 billion, $800 million more than their previous valuation.

According to sports bankers, the value of controlling stakes in the Spurs and Bucks is approximately $4 billion.

Bridgeman and Viera are among the diverse owners in pro basketball.

The NBA has made an effort to boost the number of owners who are either people of color or former NBA players.

Players who previously held a minority stake in teams include: Grant Hill with the Atlanta Hawks; Anfernee "Penny" Hardaway with the Memphis Grizzlies; Robinson with the Spurs; Dwyane Wade with the Utah Jazz; Elliot Perry with the Grizzlies; and Michael Jordan with the Charlotte Hornets.

In July, co-owner Wyc Grousbeck announced that he was selling his stake in the Boston Celtics, just weeks after they won the NBA Finals.

The Grousbeck family is selling their controlling stake in the Boston Celtics, with sources predicting that the NBA champions will fetch between $5.5 billion and $6 billion. The Celtics were purchased by the Grousbecks for $360 million in 2002.

Neither Aramark nor Earnest Partners responded to CNBC's inquiries about Viera's investments in the Spurs. The NBA declined to provide any comment on the matter.

NBCUniversal, the parent company of CNBC, is among the NBA's partners in its new media rights deal.