As team values soar, the NFL has opened the way for private equity firms to take minority positions in teams.
Private equity firms have been buying up professional sports teams for years, but until now, the golden goose –football – has been out of reach. According to the Wall Street Journal, the NFL historically preferred individuals as owners, according to The Wall Street Journal.
But the NFL has decided to compromise. In August, owners agreed to a new policy that will allow them to sell up to a 10 percent stake in each team to a select group of firms.
The move could be worth billions.
The approved private equity firms must agree to strict purchasing conditions. They must retain their stakes for at least six years, and receive no governance rights and or preferred equity investments.
The cap on investments will probably rise in coming years, observers say. Some owners already believe they should be able to sell 20 percent. NBA teams already can sell up to 30 percent.
