Miller Group selling majority interest of Utah Jazz to Qualtrics founder Ryan Smith
In this March 14, 2019, photo, Gail Miller, the owner and chairwoman of the Utah Jazz, reacts after addressing the crowd before a game in Salt Lake City. The majority interest of the Utah Jazz is being sold to technology entrepreneur Ryan Smith, a move that when formally approved by the NBA will end the Miller family’s 35-year run as owners of the franchise. The Jazz said Wednesday, Oct. 28, 2020, that “definitive agreements” have been struck with Smith on the sale of the team, Vivint Arena, the team’s G League affiliate and management of a Triple-A baseball club. Part of those agreements call for the team to remain in Utah.
Vivint Smart Home Arena is shown Wednesday, Oct. 28, 2020, in Salt Lake City.
NBA Commissioner Adam Silver, right, and Utah Jazz owner Gail Miller hold up jerseys during a news conference Wednesday, Oct. 23, 2019, at Vivint Smart Home Arena, after announcing the NBA selected Salt Lake City to host NBA All-Star Game in 2023.
The Larry H. Miller Group of Companies dropped a seismic surprise on the sports landscape of Utah on Wednesday morning, announcing the sale of “a majority interest” of the Utah Jazz and more to Ryan and Ashley Smith.
Ryan Smith is a Provo resident and founder and former owner of tech company Qualtrics.
Team governor Gail Miller, owner and chair of the LHM Group of Companies, said key to the transaction is Smith’s commitment to keeping the team in Utah and that the Miller family will retain minority ownership.
“After much soul searching, lengthy discussions and extensive evaluations of our long-term goals, my family and I decided this was the right time to pass our responsibility and cherished stewardship of 35 years to Ryan and Ashley, who share our values and are committed to keeping the team in Utah,” Miller said in a statement.
Included in the sale are the Utah Jazz, Vivint Arena and the Salt Lake City Stars. Wednesday’s release says the Salt Lake Bees will remain part of the LHM Group but management of the team will be connected to Smith and the Jazz.
The company also says Smith will acquire The Zone Sports Network — the SLC-based sports radio station that is currently home of the Jazz and Utah State Athletics, which airs on 97.5 FM and 1280 AM — in a separate sale pending industry approval.
Smith, 42, is a Utah native and lifelong resident who helped found Qualtrics in 2002 and, in 2018, sold it to SAP for a reported $8 billion. Three years ago, Smith’s nonprofit philanthropy effort 5 For The Fight became the uniform sponsor of the Jazz and has reportedly raised $25 million for cancer research through that sponsorship.
“The Jazz are a gift to our whole community and that’s 100% how we view this. We look to use this platform to continue to do good,” Smith said at a Wednesday press conference.
Gail and the late Larry H. Miller purchased the Jazz in 1985 and were key in keeping the franchise in Utah not long after the team moved from New Orleans.
“We’ve been proud of our city and appreciative of our fans’ support. There’s no question that we have the very best fans in the world,” Miller said at Wednesday’s press conference while recognizing the support of local leaders in their efforts to build the Jazz. “I believe Ryan and Ashley embody the things that we as a family hold dear … and they are absolutely committed to keeping the Jazz in Utah.”
In recent years, Miller created a family trust that tied the Jazz to her personal estate to ensure the team remained in Utah after her death.
“This was done in connection with my estate plan and with the objective of assuring our loyal Jazz fans that the team would remain in Utah. I am fully persuaded that with this sale, the objectives of the trust will be honored and the new owners have made the same commitment to keep the team in Utah,” Miller said. “This transaction will unlock opportunities that will allow us to continue our stewardship in ways not possible until now.”
Smith will become the NBA governor of the Utah Jazz and its affiliates, giving him the final decision-making authority for all business and basketball operations related to the team.
Steve Starks, the former vice president over LHM’s sports and entertainment division that oversaw the basketball team, will serve as an advisor to Smith and the Jazz as the Millers keep partial ownership. Starks is now the CEO of the LHM Group.
In addition to retaining the Bees, Larry H. Miller car dealerships, real estate and financial companies, and Megaplex Theatres remain under LHM ownership.
Details of the sale were not disclosed by the LHM Group. ESPN and The Athletic report the transaction will be for $1.66 billion, though Forbes editor Mike Ozanian reports that amount is the total valuation of the properties. Ozanian says Smith is buying an 80% share.
Terms of the sale have been approved by the NBA but the change of ownership must be approved by the NBA Board of Governors before becoming final, Starks said at the press conference.
With the NBA eyeing a quick turnaround of late December to start the 2020-21 season after the Los Angeles Lakers won the NBA Finals on Oct. 11, the NBA Draft is just three weeks away on Nov. 18. Free agency is likely to start just days later, highlighting the importance of expediting final approval of the sale.