In a groundbreaking move, the National Football League (NFL) has opened its doors to a select group of wealthy investors, paving the way for a significant shift in the league’s financial landscape.
During a special session convened by Commissioner Roger Goodell in Minnesota, NFL team owners voted to approve the sale of up to 10 percent of any franchise to a handful of private equity firms that have undergone rigorous vetting by the league.
The approved private equity firms include Arctos, Ares Management, Sixth Street, and a four-member consortium comprising Blackstone, Dynasty Equity, Carlyle, and CVC, with former NFL running back Curtis Martin also part of the consortium.
This move marks a significant departure from the traditional model of NFL team ownership, which has largely been dominated by family businesses with a few minority owners scattered throughout the league.
NFL Commissioner Roger Goodell, left, presents Washington Commanders controlling owner Josh Harris with his new team’s helmet
Cowboys owner Jerry Jones and Patriots owner Robert Kraft prior to 2021 game
The influx of private equity investment could provide a much-needed injection of liquidity for NFL teams, enabling them to invest in stadium renovations, player acquisitions, and other projects that can enhance their competitiveness and profitability.
In recent years, NFL team valuations have soared to record levels, with the Dallas Cowboys topping the list at $9 billion. The Denver Broncos and Washington Commanders have also seen significant investments, with new owners contributing to their valuations.
While the NFL has traditionally been hesitant to allow private equity firms and sovereign wealth funds to own stakes in teams, other major sports leagues, such as Major League Baseball, the NBA, and the NHL, have already taken the plunge, with varying degrees of success.
Kansas City Chiefs owner Clark Hunt (left) and Las Vegas Raiders owner Mark Davis in 2023
The NFL’s decision to open its doors to private equity firms is a significant step forward, but it’s worth noting that any potential deals would still require approval from franchise owners.
As the NFL continues to navigate the complexities of private equity investment, it remains to be seen how this new era of ownership will shape the league’s future.
