In a significant move, NFL owners have approved a policy that permits private equity firms to purchase stakes in teams. The policy allows for the acquisition of up to 10% of any franchise, with the condition that the funders do not possess voting rights on the teams. Moreover, funds can only be invested in a maximum of six teams, and the minimum investment in any franchise is set at 3%. The measure was approved by a vote of 31-1, with the Cincinnati Bengals being the sole team opposing the change.
NFL Commissioner Roger Goodell has reassured the public that this new policy will not have a significant impact on the ownership structure of the teams. He emphasized that the investment from private equity firms will only result in a silent position without any decision-making influence on the teams. Goodell highlighted the importance of maintaining the single-owner structure, which has been deemed valuable for the league. He explained that the primary purpose of this change is to provide teams with access to capital should they choose to offer 10% of their team for investment.
The NFL was notably the last major sports league in the United States to permit funding from private equity firms. Goodell acknowledged the interest in institutional investment opportunities within the league and pointed out that the NFL restricts ownership to a maximum of 10%. In contrast, other major sports leagues have set their ownership cap at 30%. Goodell argued that the 10% ownership allowed by the NFL is significantly less significant compared to other leagues, making it a relatively modest position for investors.
Positive Developments for Teams
According to Goodell, the decision to allow private equity firms to invest in NFL teams is a positive development for the league. He suggested that the new policy would provide teams with the liquidity needed to reinvest in the game and enhance their teams. While not all teams may choose to take advantage of this opportunity, Goodell believes that it will be beneficial for teams requiring additional financial resources for growth and development.