Rich Schultz/Getty Images Sport
The National Football League will now allow private equity players to pick up minority stakes in teams, in a move that would finally bring Wall Street to the richest U.S. sports league.
NFL owners on Tuesday voted to allow certain PE firms to buy an up to 10% stake in a team. Each firm or consortium will be able to enter deals with up to six teams.
The firms approved for investing include Ares Management (NYSE:ARES), Arctos Partners, Sixth Street Partners, and Ludis (founded by former NFL player Curtis Martin). The list also includes a consortium comprised of Blackstone (NYSE:BX), Carlyle (NASDAQ:CG), Dynasty Equity and CVC Capital.
The NFL had been the only major North American sports league that didn’t allow PE ownership in its teams. Major League Baseball, NBA, and NHL, allow their teams to sell up to 30% of equity to a PE fund.
Ares (ARES) has invested in U.S. football club Inter Miami, Arctos owns stakes in the NBA’s Golden State Warriors and various MLB teams, and Sixth Street has invested in the San Antonio Spurs.
The NFL’s move to allow PE ownership in teams is expected to bring in big investments. The most recent NFL team to be sold was the Washington Commanders, which Apollo Global (APO) co-founder Josh Harris bought for a record $6.05B.
