5 Private Equity Funds That Could Invest In NFL Teams

In an unprecedented turn for the NFL, private equity investors may soon be able to own NFL organizations or percentages of them.

The NFL has long portrayed its teams as homegrown, family-run organizations. As long as the NFL has existed, families have been linked to NFL teams and their respective cities through NFL ownership.

The Hunt Family and the Kansas City Chiefs, the Rooney family and the Pittsburgh Steelers, the Mara family and the New York Giants, and the Halas family and the Chicago Bears are just a few examples of the traditions of family-owned NFL organizations.

But all of that may be changing very shortly.

On Tuesday, team owners are expected to vote on a proposal permitting private equity firms to acquire up to 10% of a team, marking a significant shift in ownership dynamics. This change could further widen the gap between team owners and fans while giving profit-driven entities a more substantial say in running franchises.

A new NFL world: NFL owners will vote today on a proposal that will allow teams to sell up to a total of 10 percent of each team to a list of permitted private equity firms.

— Adam Schefter (@AdamSchefter) August 27, 2024

Private Equity Firms Who Could Gain Immediate NFL Access

Private equity involvement in the NFL has been a topic of interest for several teams. Currently, the league’s ownership rules require a single “lead owner” to hold at least a 30% stake in a team, with a maximum of 25 individuals allowed in an ownership group. Introducing private equity into the mix would drastically alter this structure, enabling investment entities with potentially thousands of members to own a stake in a team, fundamentally reshaping NFL ownership.

During a special meeting in Eagan, Minnesota, on Tuesday, the league’s 32 owners are expected to vote on a proposal that would allow select private equity firms to purchase up to a 10% stake in individual teams. Each firm or consortium would be permitted to invest in as many as six teams.

The league has advanced seven private equity firms through its selection process, narrowing down from an initial pool that saw at least three firms eliminated after preliminary talks. The final seven include four large firms—Ares Management, Blackstone Partners, Carlyle Group, and CVC Partners; one mid-sized firm, Sixth Street; and two smaller sports-focused firms, Arctos Partners and Dynasty Equity.

With this approval, I suspect every NFL team will likely have a 10% private equity owner in the coming years.

The league approved a few PE firms.

Will be interesting to see which investors get access. pic.twitter.com/wcfXvo8K19

— Max Schatzow (@AdviserCounsel) August 27, 2024

Four of these have joined forces as a consortium, consisting of Blackstone, CVC, Carlyle, and Dynasty. The remaining three are likely to pursue investments independently.

According to S&P Global Market Intelligence data, these firms collectively manage nearly $2.2 trillion in assets across approximately 2,025 portfolio holdings. While sports investments comprise only 43 of these holdings (excluding betting enterprises and general businesses that touch on sports), their combined financial power is immense. The group plans to commit $12 billion in capital, including leverage, which could result in an average infusion of $500 million in new capital for each team that receives investment.

So, with these private equity firms breaking the ice on PE investments in NFL franchises, what other private equity firms from around the sports world could be following?

5 Other Private Equity Firms That Could Eventually Invest in the NFL

1) BPEA EQT

Asian private equity firm BPEA EQT  recently acquired IMG Academy, a renowned sports education institution, from Endeavor Group Holdings in an all-cash deal valued at $1.25 billion. The acquisition was made in partnership with Nord Anglia Education, a leading provider of international schools based in the UK.

BPEA EQT is a private equity firm that has made big moves in athletics and could eye the NFL next.

2) Appolo Global Management

When Verizon sold Yahoo to Apollo Global Management in 2021, many saw it as the end of the road for the once-dominant internet giant. However, Yahoo — founded in January 1994 — is seizing a rare opportunity to reinvent itself under its new ownership. In April, the company strategically acquired Wagr, a sports betting website, to expand gaming opportunities within Yahoo Sports.

The Kraft Group, which owns the New England Patriots, is one of the leading investors in Apollo Global Management, directly linking them to NFL owners.

3) NewSpring Holdings

NewSpring, a private equity firm with a range of specialized strategies, announced that its platform-focused investment arm, NewSpring Holdings, recently acquired Underdog Venture Team to create Underdog & Company.

Renowned for its diverse leadership and equity structure, Underdog Venture Team is a next-generation firm offering an integrated suite of brand-building services, including curated experiences, integrated marketing, strategic communications, storytelling, and partnerships. Their impressive client list features organizations such as Athletes Unlimited, the Jackie Robinson Foundation, Major League Soccer, Pokatok Festival, TelevisaUnivision, and the United States Tennis Association.

With its keen interest in significant sports investments, NewSpring Holdings could eye an opportunity with the NFL.

4) GMF Capital

GMF Capital recently announced that it has completed the acquisition of Motorsport Network Media LLC (MSNM), a leading global digital media platform in the motorsport and automotive sectors.

This acquisition marks GMF’s first venture into the sports, automotive, and media industries. Since its founding in 2013, GMF Capital and its affiliates have invested over $5.5 billion, focusing primarily on private equity, real estate, and alternative investments.

With its first acquisition in the sporting world, GMF Capital has positioned itself as a media player in the sporting world, something the NFL would be interested in.

5) SRJ Sports Investments

SRJ Sports Investments, established by the country’s sovereign wealth fund, is reportedly in exclusive talks to invest around €250 million (US$268.8 million) in creating a new cycling league. Additionally, SRJ Sports Investments is making Saudi Arabia’s debut in mixed martial arts with a $100 million investment in the Professional Fighters League, including plans to launch a regional tournament, further cementing the kingdom’s growing presence in global sports.

Could the NFL be next for SRJ?