NFL owners voted Tuesday to approve a proposal that will allow private equity firms to buy a limited amount of stakes in teams.
Until now, NFL ownership rules only allowed for a limited number of approved partners, but not investment firms. The measure stipulates teams are allowed to sell off up to 10 percent worth of ownership stake to investment firms. Those investment groups must be previously approved by the NFL.
The move means little in terms of outward impact as far as fans are concerned. But the additional cash flow could provide NFL owners with funds to perform stadium upgrades and other facility projects.
The private equity stakeholders wouldn’t have any voting power, but buying into an NFL team can translate into lucrative earning opportunities. The Washington Commanders sold in 2023 for just more than $6 billion. The previous year, the Denver Broncos sold for $4.65 billion, and neither the Broncos nor Commanders have ranked among the most competitive teams in the league.
Since the sale of the Commanders to Josh Harris, NFL owners began exploring the possibility of allowing for private equity investors because both Denver’s and Washington’s new ownership groups featured a higher number of limited partners than historical ownership structures, which often are owned by one individual or family supported by a limited number of partners.
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