“Private Equity’s Infiltration: The NFL’s Shift Towards Institutional Investment”

Cold, ravenous, and predatory, private equity is making its way into the NFL. The league has finally ended its resistance to institutional capital, a move that raises concerns given the chaos and issues seen in other sports leagues, particularly the Premier League. Recently, the National Football League passed a resolution allowing private equity investment in individual teams, marking a significant shift in its long-standing stance against such investments. With this decision, the NFL joins the ranks of the , , Major League Baseball, and , all of which have embraced institutional investment in recent years. Notably, only one of the league's 32 owners, of the , opposed the proposal, reflecting his commitment to preserving the financial stability of smaller franchises in a league where team valuations and media revenues continue to soar. For the time being, the impact of this new ownership structure is expected to be minimal. The NFL is unlikely to transform overnight from a league primarily owned by wealthy individuals and families, focused on benefiting fans and communities, to one dominated by the aggressive tactics of private equity firms. However, it is difficult to believe that such a shift won't occur eventually. The league has taken steps to limit the initial scope of private equity involvement: individual funds can acquire no more than 10% of a franchise, must take purely passive stakes without any decision-making or governance rights, and are required to hold their investments for a minimum of six years. Currently, only four private equity funds are permitted to invest, and they are characterized by long investment horizons, suggesting they are not seeking quick returns. In contrast to the NBA, which has opened its doors to a broader range of investors, including sovereign wealth funds and pension funds, the NFL has opted to restrict participation to specific types of funds. As the NFL navigates this new landscape, the long-term implications of private equity's entry into the league remain to be seen.