NFL owners newly endorse private equity stakes of up to 10% in teams by league-approved firms
NFL owners have approved a rule allowing private equity investors in their teams
EAGAN, Minn. — The booming business of the NFL will now be open for more business.
League owners voted their carefully crafted approval of private equity in club ownership, putting in place a provisional new rule on Tuesday that lets certain firms buy up a stake of up to 10% in any of the 32 franchises that have soared in value over the past few decades like few other industries.
At a special meeting in Minnesota, nine days before the regular-season opener, owners for the first time opened their teams to institutional investment after previously prohibiting it. Other major American sports leagues allow as much as 30% holdings by private equity firms, and it's also a common practice in international soccer.
“It’s an access to capital that has been interest to us for a long time,” Commissioner Roger Goodell said after the session at the Omni Viking Lakes Hotel, which sits across from the headquarters of the Minnesota Vikings. “I think it’s an appropriate thing to give teams that liquidity to reinvest in the game and to their teams.”
The NFL with this vote permitted only four different groups to enter the arena: standalone firms Arctos Partners, Ares Management Corporation and Sixth Street, plus a consortium of five funds — Blackstone, Carlyle, CVC, Dynasty Equity and Ludis. The approved list could well be extended in the future, but these selections from the initial vetting process were made based on having the cash ready to go right away.
Ludis was founded by Pro Football Hall of Fame running back Curtis Martin, who spearheaded the collaboration as part of his effort to include minority race investors in NFL ownership positions.
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