Each spring, the owners of the NFL's 32 teams convene to discuss various matters, including the potential for allowing team owners to sell stakes to private-equity firms and institutional investors. The current rule restricts stake sales to wealthy individuals, but with team valuations soaring, there is a growing need for broader investment opportunities.
At this year's meeting in Orlando, Florida, from March 24 - 27, team owners are expected to deliberate on permitting institutional investors like venture firms and private equity funds to acquire passive stakes in teams. Unlike other major sports leagues, the NFL currently prohibits fund investments, but a rule change could provide owners with more flexibility in selling their stakes.
If the NFL decides to amend the rules, it could impact various stakeholders. The league may introduce regulations on which institutional investors can participate, potentially favoring private-equity firms with a track record in sports investing. Established firms like Arctos Sports, Ares Management, Dyal HomeCourt Partners, RedBird Capital, Silverlake, and Sixth Street are among those that could benefit from such a change.
Arctos Sports, managing $6.6 billion in assets, has a strong focus on sports investments, with holdings in prominent teams across different leagues. Ares Management, with $419 billion in assets, recently launched a $3.7 billion fund dedicated to sports and media investments. Dyal HomeCourt Partners, a subsidiary of Blue Owl Capital, has stakes in NBA teams and has seen significant returns from its sports investments. RedBird Capital, with $10 billion in assets, has made strategic acquisitions in the sports industry, including ownership of AC Milan soccer club. Silverlake, known for its tech investments, has ventured into sports with stakes in soccer teams and entertainment companies. Sixth Street, with $75 billion in assets, has made substantial investments in sports, including co-founding a women's soccer franchise and acquiring a sports and merchandise giant.
As the NFL owners deliberate on potential rule changes, the landscape of sports investing could see significant shifts, with established private-equity firms poised to capitalize on new opportunities in the industry.
