NFL owners and executives are scheduled to convene in Minneapolis on 27 August to deliberate and potentially vote on a proposal to allow private equity firms to purchase stakes in NFL teams, according to a report by Bloomberg.
The NFL recently held discussions with several private equity firms, aiming to finalise a framework for presenting to team owners. According to sources familiar with the matter indicate that league leaders and owners now feel confident enough to introduce this potential plan during the upcoming meeting.
The idea of allowing private equity investments in NFL teams has been under consideration since last year when the league formed a committee to explore the possibility. The committee is chaired by Kansas City Chiefs CEO Clark Hunt and includes prominent team owners such as Arthur Blank of the Atlanta Falcons, Jimmy Haslam of the Cleveland Browns, Greg Penner of the Denver Broncos and Robert Kraft of the New England Patriots.
Earlier reports from Bloomberg in May revealed that the NFL is leaning toward permitting institutional investors to acquire up to 10% of a team, although some owners advocate for a lower cap of 5%. The plan also suggests that a select group of vetted firms would have the initial opportunity to purchase these stakes.
To gauge interest from private equity, the NFL enlisted the services of investment bank PJT Partners. Among the firms being considered are Arctos Partners, Ares Management Corp, Avenue Capital Group, Carlyle Group, Sixth Street and CVC Capital Partners. Additionally, the league has had discussions with Blackstone and Dynasty Equity, according to reports from Sportico.
If approved, the NFL would become the last major American sports league to allow private equity investments in its teams. The NBA, which has team valuations comparable to the NFL, already permits private equity firms to own up to 20% of a single franchise, with a maximum of 30% of team ownership coming from institutional investors.
