NFL team owners approved a measure to allow private equity firms to take an ownership stake in franchises.
The vote came during an owners meeting in Minneapolis Tuesday, and marks the end of the NFL’s era as the only one of the major four U.S. sports leagues that did not allow institutional investment. The vote comes after a special committee of NFL owners put together a proposal of possible changes to the league’s ownership to allow for private equity investments.
Under the new rules, private equity can own up to 10% of a team, and investors must hold their position for at least six years.
The NFL still had some restrictions, only allowing investments from a select group of investors. The pre-approved firms include Arctos Partners, Ares Management Corporation, Sixth Street, Blackstone, Carlyle, CVC Capital Partners, Dynasty Equity, and Ludis, which is an investment company run by former NFL player Curtis Martin.
A spokesperson for Ares said the firm was “honored” to have the chance to invest in NFL franchises. “The NFL has long engendered deeply loyal fanbases, innovative approaches to media and some of the most viewed and highest valued sports franchises in the world,” the spokesperson said. “We are excited for the opportunity to support the continued growth of NFL teams through Ares’ extensive investment experience and strong relationship networks in the sports, media and entertainment sector.”
Arctos, which has several major sports investments including in the NBA’s Golden State Warriors and the MLB’s Houston Astros, expressed a similar sentiment. “Pending final approval, Arctos would be the only firm approved to invest in equity across each of the five most popular major North American leagues,” a spokesperson said.
In our new special issue, a Wall Street legend gets a radical makeover, a tale of crypto iniquity, misbehaving poultry royalty, and more.
Read the stories.