The National Football League plans to satisfy in Minneapolis on August 27 to debate and possibly vote on whether to permit institutional investors to speculate in teams.
The league held meetings this week with several private equity firms to work out a framework to present to owners, people acquainted with the matter said. After those meetings, league officials and owners feel confident enough to present a possible framework to other owners.
The NFL formed a committee last yr to check how the league could allow private equity firms to take ownership of teams. The group consists of its chairman, Clark Hunt, CEO of the Kansas City Chiefs, Arthur Blank, owner of the Atlanta Falcons, Jimmy Haslam, owner of the Cleveland Browns, Greg Penner, owner and CEO of the Denver Broncos, and Robert Kraft, owner of the New England Patriots.
Bloomberg reported In May, the owners focused on allowing institutional investors to purchase 10% of the clubs. Some owners would favor a 5% cap. The league’s owners would also select a small group of vetted firms to have the primary opportunity to purchase shares.
The NFL hired investment bank PJT Partners to guage interest from private equity firms, Sportico reported. The firms being considered include Arctos Partners LP, Ares Management Corp., Avenue Capital Group, Carlyle Group, Sixth Street and CVC Capital Partners, the people said. The league has also had meetings with Blackstone and Dynasty Equity, in line with Sportico.
The NFL could be the last major American skilled sports league to permit private equity firms to purchase teams. The NBA, whose teams are closest in value to the NFL, allows private equity firms to purchase as much as 20 percent of a single franchise, and an NBA team can only be 30 percent institutional.
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