What They Are Saying: NFL Stakeholders Voice Support for Private Equity Investment in Teams
Washington, D.C. – The National Football League (NFL) has announced a historic shift in the league’s ownership rules, now allowing private equity investment in its teams. Starting this year, the league will permit private equity firms to own up to an aggregate 10% stake in NFL franchises, marking a new era for the sport.
NFL executives, owners, and analysts have shared the benefits of private equity investment in the NFL and expressed their support for it.
Here’s what they are saying:
American Investment Council President & CEO Drew Maloney: “This important partnership will help teams grow, expand, and continue to support players and fans. Private equity has a proven track record of strengthening sports teams across America and now we are proud to help support the NFL.” [Statement, 8/27/2024]
NFL Commissioner Roger Goodell: “We’ve been very deliberate on this private equity. I think it’s an access to capital that I think has been [of] interest to us for a long time. Other leagues are doing it. We’re doing it with a cap of 10 percent, so a much less significant position. I think it’s an appropriate thing, to give teams that liquidity. … I think it’s a positive development for us. I don’t think all teams will take advantage of that. But they will if they need that.” [Washington Post, 8/27/2024]
Dallas Cowboys Owner Jerry Jones: “To have a strong game, you have to have a strong financial underpinning. You have to have availability of capital. And this is the type of thing that is good for the fans.” [Washington Post, 8/27/2024]
“I know this: This is good for anybody that’s in love with the NFL, any part of it,” [Associated Press, 8/28/2024]
Kansas City Chiefs’ CEO Clark Hunt: “Many of the franchises in the National Football League have had limited partners for a number of years and this is really another step in that regard in terms of adding institutional capital… That capital can be used for a lot of purposes. I think most importantly it will give teams that are considering new stadiums or renovating stadiums an opportunity to access a capital pool they’ve not had access to in the past.” [CNBC, 8/27/2024]
Denver Broncos CEO Greg Penner: “While the terms will be similar across the firms that we work with, each of these are very different. They have different skill sets, different people, approaches to the markets. What that’ll do is for the owners that want to sell a stake, give them different options for partners to work with.” [Sportico, 8/27/2024]
CEO of the New England Patriots Robert Kraft: “I think our league is unique in that we still have 32 individual owners. We have a very special culture, and wanted to be mindful that we didn’t want to do anything to change the substance of what makes the league so great … We thought this is a great source of capital and could be done in a way that was functional and wouldn’t affect the operation.” [CNBC Squawk Box, 8/28/2024]
Founder & CEO at Patricof Co Mark Patricof: “It will help fund new stadiums, practice facilities, guaranteed contracts… If 95 percent of your net worth is tied up in your team ownership, and it’s illiquid, how do you fund the evolution of the business? So, the private equity funds were a natural next step.” [Bloomberg, 8/27/2024]
Velocity Capital Management Partner David Abrams: “By bringing a new voice in creating proper governance, getting people around the table that have done this in other sports and other markets, I think it’s a great thing for the NFL.” [Bloomberg, 8/27/2024]
NFL Senior National Columnist Judy Battista: “As you heard Roger Goodell say: it’s capital. It’s a ready way for owners to access cash, hundreds of millions of dollars in cash, and that is important for teams. Why? Well, lots of teams have, for instance, really expensive stadium projects that they’re working on or facilities that they need to upgrade. That’s a really expensive thing. This is a way for owners to get cash, to invest in the team, and to invest in things surrounding the team.” [NFL Network, 8/27/2024]
CNBC Senior Sports Reporter Mike Ozanian: “What this means for the league is, number one, that when a team is sold, it’s going to be much easier for the buyer to finance the limited partnership share of the sale process. Number two, some NFL owners are going to use money from private equity firms to invest in their stadiums.” [CNBC, 8/27/2024]
