A Winning Team: NFL to Welcome Private Equity Investment in Teams
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.
- “This important partnership will help teams grow, expand, and continue to support players and fans,” said AIC President & CEO Drew Maloney. “Private equity has a proven track record of strengthening sports teams across America and now we are proud to help support the NFL.”
Supporting Growth and Expansion
The infusion of private equity into a franchise adds liquidity to the system, according to a report from Deloitte.
Owners gain more options for how they can invest in the franchise and enhance the value of their team. Projects like stadium renovations and technological advancements are expensive and require significant capital to complete. Private equity can provide this much-needed funding, as well as capital to invest in player development, marketing, fan experiences, and league-wide initiatives.
Record of Success
This decision follows a trend set by other major sports leagues. Major League Baseball paved the way in 2019, becoming the first major U.S. sports league to allow private equity investment. Since then, all major professional sports leagues in North America, except the NFL, have followed suit. Private equity firms have invested in franchises in the NBA, MLS, NHL, NWSL, and WNBA and have seen positive results.
According to PitchBook, 62 major U.S. sports teams have “connections” to private equity money. That includes 20 NBA teams, 18 MLB teams, 14 MLS teams, and 10 NHL teams.
To learn more about how private equity is investing across America, please visit www.investmentcouncil.org.
