From CNBC: 2024-09-05 10:30:39

The NFL is allowing private equity investors to acquire up to a 10% stake in franchises, marking a shift in ownership. Private equity firms will have limited involvement, focusing on financial support for teams. NFL teams have skyrocketed in value, with an average valuation of $6.49 billion, prompting the need for additional capital.

Private equity investment in sports has been on the rise, with other major U.S. leagues like the NBA and MLB already allowing up to 30% ownership by such firms. The NFL’s careful approach includes restrictions on profit sharing and minimum hold periods for these investments. Private equity investors will serve as silent partners, providing capital without operational control.

The approved private equity investors have collectively committed $12 billion in capital, signaling a significant financial contribution to the NFL. Three firms, including Ares Management and Arctos Partners, have a strong track record in sports investment and significant assets at their disposal. These firms have invested in a range of sports teams, positioning them as valuable stakeholders in the NFL.



Read more at CNBC: How investing in teams will work