financetom
Business
financetom
/
Business
/
NFL allows private equity firms to invest in teams
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
NFL allows private equity firms to invest in teams
Aug 29, 2024 9:09 AM

Aug 27 (Reuters) - The owners of the National Football League (NFL) have allowed some private equity firms to buy up to a 10% stake in a team, the NFL said on Tuesday.

Firms initially approved by the NFL include Ares Management ( ARES ) , Arctos Partners and Sixth Street in addition to a consortium comprising Blackstone, Carlyle, CVC, Dynasty Equity and Ludis.

The private equity firms plan to invest a total of $12 billion and can invest in up to six NFL teams each, a source familiar with the matter told Reuters.

The NFL's 32 owners voted at a special league meeting in Eagan, Minnesota.

Investors will need to commit a minimum of $2 billion and can invest in up to six clubs, according to the details of the meeting provided by the league, which also require a minimum hold period of six years.

The league has informed the investment firms and owners that it intends to take a share of the private equity profits on any future sales of ownership stakes, CNBC said in a separate report.

Arctos Partners, a Dallas-based private equity firm, said after the approval that it would be the only firm with an assent to invest in equity across each of the five most popular major North American leagues.

Late last year, Arctos invested in the Aston Martin Formula One team in exchange for a minority shareholding. It had also acquired a minority common equity stake in French football club Paris Saint-Germain.

The NFL is the only major North American sports league that prohibits private equity ownership in a franchise. The NBA, NHL, Major League Baseball and Major League Soccer allow their teams to sell a maximum of 30% of equity to a fund.

The league formed a committee last year to explore changes in its ownership rules. Commissioner Roger Goodell said in March the league was "very close to sort of outlining an approach", with "a lot of work to do to take that approach into reality".

The Washington Commanders was the most recent NFL team to be sold, in a record-breaking $6.05-billion deal.

With team valuations on the rise, private equity could turn out to be an alternative avenue for future league franchise sales.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Volvo Cars February sales volume down 2% year-on-year
Volvo Cars February sales volume down 2% year-on-year
Mar 5, 2024
COPENHAGEN (Reuters) -Volvo Cars' sales fell 2% in February from a year earlier to 50,315 cars, the Sweden-based group said on Tuesday, pointing to the timing of the Lunar New Year in China as an explanation for the decline. Volvo Cars, majority-owned by China's Geely Holding, said in a statement sales of fully electric cars were up 14% in total,...
Colombia's Grupo Aval reports Q4 profit, despite fall in interest income
Colombia's Grupo Aval reports Q4 profit, despite fall in interest income
Mar 5, 2024
March 5 (Reuters) - Colombian financial conglomerate Grupo Aval posted a year-over-year rise in net profit in the fourth quarter, a securities filing showed on Tuesday, as their investment portfolio experienced positive returns in line with positive financial markets performance. Net profit came in at 82.9 billion Colombian pesos ($21.03 million), in the October through December period. Meanwhile, the conglomerate...
Revolution Medicines Files Mixed-Securities Shelf
Revolution Medicines Files Mixed-Securities Shelf
Mar 5, 2024
03:14 AM EST, 03/05/2024 (MT Newswires) -- Revolution Medicines ( RVMD ) filed a registration statement Monday for the potential sale of an unspecified amount of securities from time to time. The filing covers the sale of the company's common stock, preferred stock, debt securities, warrants and units. Price: 29, Change: -0.5, Percent Change: -1.69 ...
Virgin Australia posts
Virgin Australia posts "strong increase" in 1H profit, internal memo shows
Mar 5, 2024
(Reuters) - Virgin Australia, the carrier owned by Bain Capital, reported a profit of A$236 million ($153.2 million) in the first half of this fiscal year, reflecting a strong increase from last year, according to an internal memo seen by Reuters. The carrier reported interim revenue of A$2.8 billion, citing a robust recovery in travel demand and an increase in...
Copyright 2023-2026 - www.financetom.com All Rights Reserved