NFL Considers Allowing Private Equity Stakes in Teams

The NFL is considering allowing private equity firms to hold up to 10% stakes in its teams. Commissioner Roger Goodell views this as a necessary policy update to align with the changing economics of sports. The league plans to finalize these adjustments by the end of the year.

Traditionally, the NFL has avoided institutional investments, in contrast to other major U.S. sports leagues that permit up to 30% private equity ownership. This change is occurring as NFL franchise values skyrocket due to lucrative media contracts, making complete ownership feasible only for the extremely wealthy.

Josh Harris, co-founder of Apollo Global Management, spearheaded a $6.05 billion acquisition of the Washington Commanders in 2023, setting a record for U.S. sports franchises. His ability to raise such substantial capital indicates a possible reassessment of NFL ownership structures.

Private equity firms, which seek high returns, may be drawn to minority stakes. Such investments usually entail limited decision-making authority, which fits with the NFL's desire to keep control in the hands of current owners.

Ultimately, the NFL's embrace of private equity could represent a strategic financial strategy, balancing the infusion of new capital with the maintenance of traditional ownership patterns.