NFL Opens Door to Private Equity Investments in Club Ownership
In a significant shift for the NFL, league owners have voted to allow private equity firms to acquire stakes in NFL teams, marking a major change in the league’s ownership structure. At a special meeting held in Minnesota, the NFL approved a provisional rule permitting select private equity firms to purchase up to 10% of any of the 32 franchises. This decision reflects a new openness to institutional investment, which has been common in other major sports leagues and international soccer.
The newly approved firms include Arctos Partners, Ares Management Corporation, Sixth Street, and a consortium of five major funds: Blackstone, Carlyle, CVC, Dynasty Equity, and Ludis. Ludis, notably founded by Pro Football Hall of Famer Curtis Martin, aims to include minority investors in NFL ownership.
NFL Commissioner Roger Goodell emphasized the benefits of this move, stating, “It’s an access to capital that has been of interest to us for a long time. I think it’s an appropriate thing to give teams that liquidity to reinvest in the game and to their teams.”
The league has set several conditions for these investments. While private equity can hold up to 10% of a team, each firm must maintain a minimum investment of 3%, and individual investors cannot own more than 7.5% of a fund. Additionally, each purchase must be retained for at least six years, and no more than six teams can be invested in by a single fund. There are also restrictions to prevent any single fund from investing more than 20% in one team.
This decision follows a five-year study and comes in response to the rising cost of NFL franchises, exemplified by recent high-profile sales such as the Denver Broncos and Washington Commanders. The move is designed to offer current owners additional capital options while preserving the league’s traditional single-owner structure.
NFL owners are assured that this change will not impact football operations. “All it is is a silent position that would allow access to capital for those teams that wish to offer 10% of their team,” Goodell said, adding that the league will also receive a portion of the proceeds from each sale.
Dallas Cowboys owner Jerry Jones endorsed the decision, noting, “I know this: This is good for anybody that’s in love with the NFL, any part of it.”
With the NFL targeting $25 billion in annual revenue, this new investment avenue represents a strategic move to ensure financial stability and growth within the league.