Welcome to Extreme Investor Network, where we bring you the latest and most exclusive business news. In today’s update, we have exciting information about the National Football League (NFL) and its plans to allow private equity firms to take ownership stakes in teams.
The NFL is set to vote on a proposal that would permit private equity firms to acquire up to a maximum 10% stake in teams. This move marks a significant shift for the league, as it has never before allowed private equity investment. In comparison, other major sports leagues like Major League Baseball, the National Basketball Association, and the National Hockey League already permit up to 30% ownership by investment firms.
What sets the NFL’s proposal apart is that the league is considering taking a percentage of potential profits, known as “carry,” from private equity firms on any future sales of ownership stakes. While the details are still being finalized, this unique approach could have implications for both investors and team owners.
Despite the potential impact on returns, the NFL is in the process of approving specific funds, including Blackstone Partners, Sixth Street, and CVC Partners, as potential buyers. This move comes as the league’s total value has soared from $23.46 billion to $190 billion over the past two decades, outpacing the S&P 500 index.
As this story develops, we will continue to provide updates on how the NFL’s plans could reshape the landscape of sports ownership. Stay tuned for more exclusive insights from Extreme Investor Network.