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As private equity has made inroads into every aspect of the American economy, one highly popular and profitable sector has resisted it: Professional football. But that could change on Tuesday, when NFL owners plan to vote on whether to change the league\u2019s ownership rules to allow private equity investments<\/a> into teams.\u00a0<\/p>\n All 32 NFL owners are gathered in Minneapolis to vote on the matter. The rule changes will pass if 24 teams vote to ratify the measure.\u00a0<\/p>\n Allowing a private equity investment into teams would represent the first time the NFL allowed<\/a> institutional capital into its franchises. Until now, teams were owned by wealthy individuals, or at most a consortium of investors, who put up their own personal money. The league has long been defined by legendary, larger-than-life teams owners. Among the most famous are the likes of Dallas Cowboys owner Jerry Jones or Robert Kraft, who owns the New England Patriots.\u00a0<\/p>\n The possible rule changes have been in the works for over a year. In September 2023 the NFL put together a committee<\/a> to explore revamping its ownership policies. The decision to form the committee came after two mammoth sales: the Denver Broncos to Walmart<\/a> heir Rob Walton for $4.65 billion<\/a> and the Washington Commanders to Apollo Global Management<\/a> co-founder Josh Harris for $6.05<\/a>. (Harris invested his own money, not Apollo\u2019s).\u00a0<\/p>\n The NFL had previously considered<\/a> a vote on the matter in May, but ultimately opted to<\/a> postpone it. After that May meeting NFL commissioner Roger Goodell sounded optimistic the changes would be adopted, telling the press that team owners \u201cagree with the direction we\u2019re going, some of the aspects that we presented to them in that update.\u201d\u00a0<\/p>\n The NFL is the only one of the major four U.S. sports leagues that does not allow any institutional investment. The NBA, NHL, and MLB all allow teams to sell up to 30% to such investors. In overseas sports, in particular European soccer, institutional investment is much more common.\u00a0<\/p>\n Even the NFL\u2019s new ownership rules, should they pass on Tuesday, would be more restrictive than other leagues. The NFL would likely only allow 10% of a team to be sold to a select group of investors approved by the league, according to the Wall Street Journal<\/em>.\u00a0<\/p>\n As of June the NFL had identified seven private equity firms that it believed would be suitable for investment, according<\/a> to Sportico. Six of the seven firms\u2014Ares Capital, Carlyle Group<\/a> CVC Partners, Sixth Street Arctos Partners and Dynasty Equity\u2014all have varying degrees of expertise in sports investments. Blackstone<\/a> is the only one of the NFL\u2019s pre-selected firms that does not have previous sports investments, but it does have roughly $1 trillion in assets under management. Each firm would be able to invest in up to six different teams. The NFL won\u2019t allow sovereign wealth funds to invest in teams, as is the case in other sports leagues.\u00a0<\/p>\n Sixth Street, Arctos, and Dynasty Equity in particular have made names for themselves as specialists in the sports business. Sixth Street invested<\/a> in Spanish soccer team Real Madrid\u2019s new stadium, Arctos owns<\/a> a minority stake in the NBA\u2019s Golden State Warriors, and Dynasty Equity bought<\/a> a stake in English soccer team Liverpool Football Club, which is owned by Fenway Sports Group, John Henry\u2019s company that also owns the Boston Red Sox.\u00a0<\/p>\n NFL franchises are among the most highly valued assets in sports, making them both highly coveted and prohibitively expensive. Easing the ownership rules would allow a greater number of investors to be involved in owning a team, while providing existing owners a liquidity should they want or need it. The NFL\u2019s soaring valuation comes from the league\u2019s massive media rights deals, estimated to be worth around $110 billion dollars over 10 years. As the most popular sport in America, football and NFL also occupy an extraordinary role in the nation\u2019s culture. That too has translated to success in the marketplace, where in 2023 93 of the top 100<\/a> U.S. television broadcasts were NFL games.\u00a0\u00a0<\/p>\n The Dallas Cowboys are the most valuable sports team in the world, valued around $10 billion in 2024, according<\/a> to Sportico<\/em>. The second most valuable sports franchise is the baseball powerhouse New York Yankees, worth around $7.1 billion, according<\/a> to Forbes<\/em>. The NBA\u2019s most valuable franchise, the Golden State Warriors, was valued around the same amount. While in European soccer Real Madrid, the legendary Spanish team, is the continent\u2019s most valuable, pegged at $6.1 billion.<\/p>\n<\/div>\n\nRecommended for you:\u00a0<\/strong>
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