The NFL is set to welcome private equity firms into its exclusive ownership club, allowing them to buy up to a 10% stake in select teams. Ares Management, Sixth Street Partners, and Arctos Partners are among the firms expected to be approved. These firms collectively have $2 trillion in assets and intend to commit $12 billion of capital to be raised over time. The NFL is the last major sports league to allow private equity investment, with the other leagues allowing ownership stakes of up to 30%.
Commissioner Roger Goodell has expressed interest in private equity funding, believing it will complement the existing ownership structure. The rise in NFL team valuations has made it difficult for a smaller pool of owners to afford the price tag when teams become available for sale. The recent sale of the Washington Commanders for a record $6.05 billion highlighted this issue.
As the NFL opens its doors to fresh capital, the money will also free up funding for new stadiums and related projects. Teams like the Buffalo Bills, Tennessee Titans, Cleveland Browns, Chicago Bears, and Washington Commanders are actively pursuing new stadium projects. The league’s decision to allow private equity investment will provide additional resources for team owners and help facilitate future stadium development.
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