At a special league meeting in Eagan, Minnesota, the NFL’s 32 owners are expected to vote in favor of allowing select private equity firms to buy up to a 10% stake in a team. The approved firms, including Ares Management, Sixth Street Partners, Arctos Partners, and a consortium nicknamed “The Avengers,” collectively have $2 trillion in assets and intend to commit $12 billion of capital to be raised over time. With at least four investor groups able to invest in up to six teams each, this equates to an average of $500 million of added capital for each team receiving an investment.
The NFL is the last major sports league to allow private equity investment, with other leagues allowing up to 30% ownership by private equity firms. NFL Commissioner Roger Goodell believes the 10% limit is a complement to the existing ownership structure and may be raised in the future. This move comes as team valuations continue to rise, making it difficult for a smaller pool of wealthy individuals to afford team purchases.
Notable recent transactions, such as the sale of the Washington Commanders for a record $6.05 billion, have highlighted the need for new sources of capital in the league. This new funding could also support the construction of new stadiums, with teams like the Buffalo Bills, Tennessee Titans, Cleveland Browns, Chicago Bears, and Washington Commanders all pursuing new stadium projects. Overall, allowing private equity investment will inject fresh capital into the league and help support team management and infrastructure projects.
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