The NFL has officially lifted some of its strictest ownership rules, allowing certain private equity firms, including Arctos Partners, Ares Management and Sixth Street Partners to purchase stakes in franchises, according to a report by Bloomberg.
The move is widely expected to inject billions of dollars into the league and drive up team valuations even further.
In a special meeting held in Minneapolis, NFL owners voted 31-1 in favour of the new policy, which permits pre-approved private equity firms to acquire up to a 10% stake in a team. The decision marks a significant shift in the league’s approach to ownership, which has traditionally been limited to individual investors and small groups of partners, often consisting of friends, former players or local celebrities.
As well as the pre-approved PE firms, a consortium led by former NFL star Curtis Martin, which includes Dynasty Equity, Blackstone, Carlyle and CVC Capital Partners, has also been greenlit to pursue investments.
Several teams, including the Los Angeles Chargers and the Buffalo Bills, are reportedly already seeking investors, with Philadelphia Eagles owner Jeffery Lurie also considering selling a portion of his franchise.
Under the new rules, private equity firms must hold any investment for at least six years and are required to purchase a minimum of a 3% stake in a team.
With team valuations ranging from $5bn to $10bn, a 10% stake could cost between $500m and $1bn, making the NFL an attractive but expensive market for private equity. Unlike controlling owners, who are restricted to owning only one team, private equity firms can invest in up to six teams simultaneously, a rule similar to one employed by the NBA.
