KKR-backed sports investment firm Arctos Partners is in discussions to acquire a 10% minority interest in NFL franchise the Atlanta Falcons, according to a report by Bloomberg citing unnamed people familiar with the matter.
If completed and approved, the transaction would give Arctos a stake in its fourth NFL franchise, the most of any private equity investor. The firm already holds interests in the Buffalo Bills, Los Angeles Chargers and Cleveland Browns.
The discussions come as private capital continues to expand its footprint in professional sports, with institutional investors increasingly targeting minority positions in teams as a route into the sector.
NFL rules currently allow private equity firms to own stakes of up to 10% in an individual franchise. A single investment firm can hold interests in as many as six teams, while only a franchise’s controlling owner can sell a stake to a private equity fund.
Arctos is among a select group of investment firms approved by the NFL to make such investments. Other permitted investors include Ares Management, Sixth Street Partners, Carlyle Group and Dynasty Equity Partners.
The Falcons are controlled by Arthur Blank, the Home Depot co-founder who acquired the franchise for $545m in 2002. Blank has since expanded his sports interests to include Atlanta United, the city’s Major League Soccer franchise, as well as an Atlanta expansion team in the National Women’s Soccer League. He is also an investor in PGA Tour Enterprises.
Blank’s fortune is estimated at approximately $10.7bn, according to the Bloomberg Billionaires Index.
