NFL owners give nod to first private equity investment
Vote ends National Football League's status as private equity ownership holdout
28 August 2024 - 21:09
byReuters
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New England Patriots wide receiver David Wallis, left, is tackled by Washington Commanders cornerback Nick Whiteside 2 during a preseason game in Landover, Maryland, the US, August 25 2024. Picture: PETER CASEY/USA TODAY SPORTS
The National Football League (NFL) in the US is opening its doors to private equity funds.
At a meeting in Eagan, Minnesota, on Tuesday, NFL owners voted in favour of a resolution that allows funds to purchase up to 10% of a franchise.
The league met several firms earlier in August as it explored whether to change its rule disallowing institutional money in team ownership. The NFL was the only major North American sports league that prohibited private equity ownership in a franchise before Tuesday’s vote.
Private equity funds will only be able to achieve “passive ownership”, which would not come with any decision-making power within a team’s ownership suite or front office.
The league provisionally approved eight funds to buy a stake in a franchise. Sixth Street Partners, Ares Management and Arctos Partners are operating on their own. Another five funds make up a consortium interested in investing: Blackstone, the Carlyle Group, CVC Capital Partners, Dynasty Equity and Ludis.
New York Jets Hall of Fame running back Curtis Martin founded Ludis, and NFL commissioner Roger Goodell said that Martin took the initiative to form the consortium.
ESPN reported that the owners voted 31-1 in favour of the measure, with the Cincinnati Bengals the lone holdout.
“They spent a lot of time, a lot of work and I’m appreciative of the kinds of interest that we have from the financial community that spent the time they did putting this together,” Dallas Cowboys owner Jerry Jones said, per ESPN. “This is a win for the game.”
An Ares Management spokesperson said in a statement: “Ares is honoured to have been accepted by the NFL to be able to invest in its iconic football franchises. The NFL has long engendered deeply loyal fanbases, innovative approaches to media and some of the most viewed and highest valued sports franchises in the world.
“We are excited for the opportunity to support the continued growth of NFL teams through Ares’ extensive investment experience and strong relationship networks in the sports, media and entertainment sector.”
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
NFL owners give nod to first private equity investment
Vote ends National Football League's status as private equity ownership holdout
The National Football League (NFL) in the US is opening its doors to private equity funds.
At a meeting in Eagan, Minnesota, on Tuesday, NFL owners voted in favour of a resolution that allows funds to purchase up to 10% of a franchise.
The league met several firms earlier in August as it explored whether to change its rule disallowing institutional money in team ownership. The NFL was the only major North American sports league that prohibited private equity ownership in a franchise before Tuesday’s vote.
Private equity funds will only be able to achieve “passive ownership”, which would not come with any decision-making power within a team’s ownership suite or front office.
The league provisionally approved eight funds to buy a stake in a franchise. Sixth Street Partners, Ares Management and Arctos Partners are operating on their own. Another five funds make up a consortium interested in investing: Blackstone, the Carlyle Group, CVC Capital Partners, Dynasty Equity and Ludis.
New York Jets Hall of Fame running back Curtis Martin founded Ludis, and NFL commissioner Roger Goodell said that Martin took the initiative to form the consortium.
ESPN reported that the owners voted 31-1 in favour of the measure, with the Cincinnati Bengals the lone holdout.
“They spent a lot of time, a lot of work and I’m appreciative of the kinds of interest that we have from the financial community that spent the time they did putting this together,” Dallas Cowboys owner Jerry Jones said, per ESPN. “This is a win for the game.”
An Ares Management spokesperson said in a statement: “Ares is honoured to have been accepted by the NFL to be able to invest in its iconic football franchises. The NFL has long engendered deeply loyal fanbases, innovative approaches to media and some of the most viewed and highest valued sports franchises in the world.
“We are excited for the opportunity to support the continued growth of NFL teams through Ares’ extensive investment experience and strong relationship networks in the sports, media and entertainment sector.”
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