The National Football League (NFL) is on the verge of allowing private equity investments into its franchises, following the path of other major U.S. sports leagues. According to a report by Sportico, a committee including Commissioner Roger Goodell and prominent team owners met with leading private equity firms such as Blackstone, Carlyle, and CVC to discuss potential collaborations. A formal vote on the proposal is expected later this month.
Allowing private equity investment would provide NFL team owners with increased liquidity and access to substantial capital, facilitating further growth and stability within the league. Other leagues like the NBA, MLB, NHL, and MLS have already embraced this model, enabling firms like Arctos Sports to acquire minority stakes in numerous teams across various sports.
Under the anticipated NFL framework, private equity firms could own up to 10% of a team, as indicated by Goodell in a recent CNBC interview. These investments would be passive, granting no operational control, and may include provisions allowing teams to repurchase stakes in the future.
This move comes as NFL franchise valuations continue to soar. The Dallas Cowboys recently became the first sports team valued at $10 billion, with the average NFL team now worth nearly $6 billion—a 15% increase from the previous year. The influx of private equity could further elevate these valuations by injecting fresh capital and attracting a broader range of investors.
Private equity participation offers mutual benefits: firms gain access to lucrative, long-term investments with strong historical appreciation, while team owners unlock capital without relinquishing control. Fans may also see positive impacts through enhanced team resources and potential improvements in facilities and fan experiences.
The NFL’s cautious approach mirrors its strategy of observing and learning from other leagues’ experiences before implementation. If approved, this initiative could mark a significant evolution in the league’s financial structure, aligning it with modern investment trends and supporting sustained growth in the competitive sports landscape.
This article was originally published on Huddle Up
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