Robert Sarver blamed an 'unforgiving climate' for forcing him to sell the Suns — but he could walk away with more than $1 billion

• Robert Sarver is selling the Phoenix Suns and Mercury.
• Sarver bought the Suns for $401 million in 2004 and Forbes now values the team at $1.8 billion.

When Robert Sarver announced he was selling the Phoenix Suns and Mercury, he said it was due to an "unforgiving climate."

An NBA investigation had found Sarver used racist and sexist language in the workplace, leading the league to suspend him for one year and fine him $10 million. Several prominent NBA players — and even the Suns' vice chairman, Jahm Najafi — called the punishment insufficient.

"Whatever good I have done, or could still do, is outweighed by things I have said in the past," Sarver said in his statement.

Yet, by selling the teams, Sarver will stand to profit enormously.

Sarver led a group called the Suns Legacy Partners that bought the team for $401 million in 2004. According to The Athletic's Mike Vorkunov, the group paid $200 million in cash and took on $201 million in debt.

Sarver's stake was initially "roughly" 30%, but according to Vorkunov, it may have grown up to 40%.

Forbes values the Suns at $1.8 billion, while Sportico lists them at $1.9 billion.

However, many believe the Suns could top those numbers by quite a bit, perhaps fetching an historic sum. Alibaba co-founder and executive vice chairman Joe Tsai's $3.3 billion purchase of the Brooklyn Nets stands as the record for the most expensive team sale in the NBA. The recent sale of the NFL's Denver Broncos, for $4.65 billion to a group led by Walmart heir Rob Walton, holds the record in professional sports.

Vorkunov reported that one sports valuation expert believes the Suns will sell for more than $3 billion.

On his podcast, Bill Simmons predicted the Suns would sell for $4.4 billion, adding, "It'll be over $4 billion." ESPN's Brian Windhorst, who was a guest on the podcast, responded, "I am not going to dispute that."

If we assume Sarver owns 40% of the team, doesn't have any debt to pay off, and the Suns sell for $3 billion, Sarver's stake would be worth $1.2 billion.

If the Suns sell for $4 billion, as Simmons believes, Sarver would be walking away with $1.6 billion.

If the sale lands in the middle, say at $3.5 billion, that would still represent a 773% rate of return for Sarver. For comparison, the S&P 500 has a 235% rate of return over that same time period.

Franchise values for WNBA teams are a little trickier. The Athletic reported in June that Commissioner Cathy Engelbert said that the value of the WNBA's 12 teams and the league itself is over $1 billion. The Athletic suggested then that the average value of a WNBA team is $43.75 million, though the Las Vegas Aces were sold to new owner Mark Davis for just $2 million.

The Suns are believed to be a valuable commodity. They are a good team with a talented roster that made the NBA Finals in 2021. Though Phoenix isn't one of the NBA's bigger TV markets, it's a desirable location for its warm weather and access to the West Coast. ESPN's Adrian Wojnarowski reported that people around the league believe that Phoenix is a "sleeping giant" when it comes to free agency markets.

According to Vorkunov, the Suns also opened a sportsbook inside their renovated arena, Footprint Center, bringing a gambling element to their in-game experience.

Sportico reported that the investment bank Moelis and Co., will oversee the sale of the Suns and Mercury.