The NFL is opening its doors to a new and exclusive group of wealthy investors.
Team owners voted Tuesday to approve limited stakes in NFL teams for private equity firms in a move that could permanently alter the league’s financial landscape.
The vote took place at a special session hosted by Commissioner Roger Goodell in Minnesota, where NFL team owners approved the sale of up to 10 percent of any franchise to a select number of private equity firms, which have already been vetted by the league.
Among the approved private equity firms are Arctos, Ares Management, Sixth Street and a four-member consortium that includes Blackstone, Dynasty Equity, Carlyle and CVC, a source confirmed to DailyMail.com. Former New York Jets and New England Patriots running back Curtis Martin is also included in the consortium.
Tuesday’s vote affected only private equity firms and not sovereign wealth funds, such as Saudi Arabia’s PIF, which has invested in everything from boxing to golf.
NFL Commissioner Roger Goodell, left, presents Washington Commanders majority owner Josh Harris with his team’s new helmet
Cowboys owner Jerry Jones and Patriots owner Robert Kraft before the 2021 game
While Tuesday’s vote may not have an immediate impact on the NFL or its fans, it could allow private equity firms to inject some much-needed liquidity. With that additional funding, teams would have more leeway to invest in stadium renovations or other similar projects.
Traditionally, NFL teams have been run as family-owned businesses with only a few minority owners across the league. Two notable exceptions are the Green Bay Packers, which are owned by 537,460 shareholders and governed by a board of directors, as well as the New York Giants, which are co-owned by the Mara and Tisch families.
Private equity could also boost team valuations, which have already reached record levels in recent years.
The Dallas Cowboys, for example, are valued at $9 billion, a league record, according to Forbes, while the Denver Broncos and Washington Commanders were valued for $4.65 billion in 2022 and $6.05 billion in 2023, respectively.
And in the case of Denver and Washington, the new owners of each team included contributions from limited investors, all of them considered silent partners, more or less.
Any potential NFL ownership deal would still need to be approved by franchise owners.
Goodell formed a committee a year ago, tasking a group of powerful team owners with rethinking the league’s ownership structure.
Kansas City Chiefs owner Clark Hunt (left) and Las Vegas Raiders owner Mark Davis in 2023
In May, Kansas City Chiefs owner and finance committee chairman Clark Hunt said he thought “everyone in the room is in agreement that the talks should move forward.”
Cowboys owner Jerry Jones agreed, saying private equity was “exhaustively evaluated, to my satisfaction… I’m very confident that we’re hitting all the right spots, all the right points.”
Major League Baseball, Major League Soccer, the NHL, NBA and NWSL already allow private equity firms and sovereign wealth funds to own up to about 30 percent of their franchises, though specific rules differ from league to league.
Sovereign wealth funds are a particularly hot topic, given Saudi Arabia’s recent investment in various sports.
Saudi-backed golf circuit LIV is currently negotiating a merger with rival PGA, while the controversial regime of Prince Mohammed bin Salman has also made inroads into boxing, football and Formula One.
