NFL poised to allow private equity ownership
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The National Football League on Tuesday will vote on allowing private equity ownership, making it the last major U.S. sports league to do so.
What to know: This is going to pass. If it wasn't, NFL commissioner Roger Goodell wouldn't have scheduled the vote.
- The plan would establish a relatively small group of provisionally approved buyers, with actual transactions needing to be vetted by the league and ratified by other owners.
Zoom in: The primary drivers are skyrocketing team sale prices, and the liquidity opportunities that creates for current owners. Particularly for those who are merely billionaires, rather than multi-billionaires.
- Some deals, however, might be more about growth. For example, a private equity firm injecting capital into a club that wants to renovate its stadium or build mixed-use properties nearby.
- Both the Buffalo Bills and Tennessee Titans are building new stadiums, while the Cleveland Browns, Chicago Bears, and Washington Commanders are in the planning stages.
Details: Don't be surprised if the NFL announces its approved buyer list after Tuesday's vote.
- Among the names expected to be included are Arctos Partners, Ares Management, and Sixth Street Partners. Plus a consortium consisting of Blackstone, Carlyle, CVC Capital Partners, and Dynasty Equity.
- Keeping the group limited helps the NFL try to maintain its air of exclusivity, but it's possible that an unapproved firm will eventually try to strike a deal. Unclear if a process would be established to add more firms, or if the league will tell owners that there's plenty of capital in the existing pool.
The bottom line: Private equity is getting invited into one of the last areas of the U.S. economy from which it's been excluded.
