The NFL is set to welcome private equity firms into an exclusive club, allowing them to buy up to a 10% stake in select teams. The approved firms, including Ares Management, Sixth Street Partners, Arctos Partners, and a consortium named “The Avengers,” will collectively commit $12 billion in capital. This move comes as the league aims to diversify its ownership structure and bring in fresh capital for teams and stadium projects.
NFL Commissioner Roger Goodell has expressed interest in private equity investment, and the league has created a committee to explore this possibility. Currently, the NFL is the only major sports league allowing private equity ownership, with a limit of 10% per team compared to 30% in other leagues.
The rising valuations of NFL teams have made it difficult for a smaller pool of wealthy individuals to afford ownership stakes. This was evident in the record-breaking sale of the Washington Commanders last year for $6.05 billion. The influx of new capital from private equity firms will help alleviate financial burdens and support infrastructure projects like new stadiums for teams like the Buffalo Bills, Tennessee Titans, Cleveland Browns, Chicago Bears, and Washington Commanders.
As the NFL prepares to welcome private equity investors, it signals a new era of ownership and financial flexibility for teams looking to fuel growth and development in the rapidly evolving sports industry.
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