Key Points
- Radical Proposal: Governor Ned Lamont has publicly backed a plan to use Connecticut’s multibillion-dollar public employee pension fund to purchase a minority stake in the WNBA’s Connecticut Sun.
- Preventing Relocation: The primary goal is to keep the state’s sole major league sports franchise in Connecticut, as its owners, the Mohegan Tribe, are actively seeking a buyer or new investor.
- Financial Debate: Lamont argues the investment could yield significant returns for the underfunded pension system, while critics, including top Republicans, warn it’s a “very risky” move motivated by politics rather than sound financial strategy.
- High-Profile Involvement: Legendary UConn women’s basketball coach Geno Auriemma is reportedly playing a “quiet” but “impactful” role in the high-stakes negotiations.
In a bold and unprecedented move, Connecticut Governor Ned Lamont has confirmed his administration is pursuing a plan to use the state’s public pension funds to invest in the WNBA’s Connecticut Sun. The proposal aims to secure the team’s future in the state amid fears of a potential sale and relocation.
The plan comes as the team’s owners, the Mohegan Tribe, are actively exploring options to either sell the franchise or bring on new investors. This situation created a wave of panic among state leaders earlier this summer when a Boston-based group made an offer to purchase and move the team. The potential loss of the Sun would leave Connecticut without any major league professional sports franchises.
A High-Stakes Financial Play
Governor Lamont publicly endorsed the pension fund strategy, framing it as a potentially lucrative investment for the state’s pensioners. He pointed to the Mohegan Tribe’s own success as a benchmark for the team’s value.
“Ask Mohegan Sun whether it was a good investment they made 20 years ago,” Lamont stated. “I think it’s eight to one.”
The tribe purchased the Sun franchise in 2003 for $10 million. Recent offers for an outright sale have reportedly soared past the $300 million mark, highlighting the explosive growth in the valuation of professional sports teams. Lamont suggested that such returns could help address the state’s pension funds, which remain underfunded by an estimated $35 billion.
“We wouldn’t have any pension liability if we had that type of return,” the governor quipped.
A Risky Bet or a Savvy Investment?
However, the proposal has drawn sharp criticism and raised serious concerns, particularly from Republican leaders. They argue that using pension funds—money meant for the retirement of public employees—for a single, politically motivated investment is a departure from sound fiscal management.
“This could potentially be a very risky investment for the state and it’s really not being used as an investment so much as it’s being used to retain the team — which I understand and respect those efforts,” said State Sen. Steve Harding, the Republican leader in the State Senate.
Critics also note that while other states have invested pension money in the sports industry, they have typically done so through diversified funds that hold stakes in multiple teams across different leagues. Connecticut’s proposal to invest directly in a single team is a much more concentrated and, therefore, riskier venture.
The Path to the Proposal
The pension fund idea gained traction after other efforts to secure the team’s future stalled. Governor Lamont had previously supported a bid by a Connecticut billionaire to buy the team and move it to Hartford. However, the WNBA was reportedly not in favor of a relocation to either Hartford or Boston.
With the Mohegan Tribe seeking a new financial partner and outside buyers circling, the Lamont administration needed a creative solution to keep the team at its current home at Mohegan Sun Arena.
A Basketball Legend’s Quiet Role
The negotiations have been steered primarily by Lamont and his economic development chief, Dan O’Keefe. However, the governor revealed that another influential figure has been involved behind the scenes: UConn women’s basketball head coach, Geno Auriemma.
“He’s played a very impactful, quiet role,” Lamont said of Auriemma, declining to provide further details on the coach’s specific contributions to the multifaceted talks.
As the state weighs this controversial financial strategy, the future of the Connecticut Sun hangs in the balance. The decision will test the line between civic pride and fiduciary duty, with major implications for both the state’s sports fans and its public-sector retirees.
Image Referance: https://www.wtnh.com/news/connecticut/lamont-backs-plan-to-use-pension-fund-to-keep-connecticut-sun/
