If billionaires can no longer afford sports franchises, who can? Well, that’s why league officials are taking a hard look at private equity firms, which are sitting on a $1.2 trillion war chest and always on the hunt for deals. A handful of PE firms have amassed stakes in NBA, MLS, MLB, and NHL franchises; the small number is mainly the result of high barriers to entry. (For example, most leagues require potential funds to have at least $750 million in capital, one source familiar with the franchise industry told Fortune.)
The NFL is the last major professional sports league in North America that prohibits private equity firms from investing in teams, a rule that reflects the owners’ historical desire to keep the NFL an insiders’ club. But since the summer of 2023, a special committee has been reviewing potential changes to those rules, according to ESPN. The NFL has appointed PJT Partners to serve as a liaison between the league and interested PE firms, Sportico reported in May, and is considering a plan to allow PE firms to own up to 30% of a single franchise, with no single firm owning a stake larger than 10%. Current NFL owners were expected to vote on that measure last month, but the vote was delayed to later this year.