NEW YORK – National Football League (NFL) owners have voted to allow private equity investment in a landmark move that could see billions of dollars in new funding pumped into the sport, the US-based league confirmed.
At a meeting in Milwaukee on Aug 27, the owners of the 32 teams gave the green light to a plan that would allow a group of hand-picked private equity firms to purchase up to a 10 per cent stake in a team.
The vote represents a significant departure for the way NFL teams are funded. Historically, franchises have been run as family businesses or owned by wealthy individuals.
The move potentially puts billions of dollars of new cash on the table to help pay for new stadiums and other projects for the most popular sport in the United States.
According to NFL documents setting out the parameters of the new funding deal, private equity firms must also retain their investment for a minimum of six years.
The NFL has approved three firms, Arctos Partners, Ares Management and Sixth Street as well as a consortium consisting of Blackstone, Carlyle, CVC, Dynasty Equity and Ludis, as the companies allowed to invest.
The companies plan to invest a total of US$12 billion (S$15.6 billion) and can invest in up to six NFL teams each, a source familiar with the matter said.
NFL commissioner Roger Goodell said that the carefully crafted funding measure would barely be noticed by fans.
“From a fan’s standpoint, this won’t change a thing,” he added.
“This is 10 per cent of a team. All it is is a silent position that would give access to capital for the teams that wish to offer 10 per cent of their teams.”
The decision brings the NFL into line with other US professional sports leagues, as well as some of the world’s biggest football teams.
Major League Baseball (MLB), the National Basketball Association (NBA) and the National Hockey League (NHL) allow up to 30 per cent of teams to be owned by investment firms.
Sixth Street has already invested in Spanish football giants Real Madrid’s new stadium and also owns a stake in the NBA’s San Antonio Spurs.
Late in 2023, Arctos invested in the Aston Martin Formula One team in exchange for a minority shareholding. It had also acquired a minority common equity stake in French football club Paris Saint-Germain.
Another of the approved NFL investors, Dynasty Equity, owns a stake in English football giants Liverpool.