NFL likely to vote for private equity ownership, CNBC reports

(Reuters) – National Football League owners are expected to allow some private equity firms to buy stakes of up to 10 percent in a team, CNBC reported on Tuesday.

According to CNBC, the NFL's 32 owners will vote at a special league meeting in Eagan, Minnesota. The private equity firms intend to provide $12 billion in capital, which will include debt financing.

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

The companies initially approved by the NFL include Ares Management and Arctos Partners, as well as a consortium of Blackstone, Carlyle, CVC and Dynasty Equity, the report said, citing people familiar with the matter.

Private equity firms Ares Management and Sixth Street Partners, as well as firms affiliated with the consortium, declined to comment on the report. The NFL and Arctos Partners did not immediately respond to Reuters requests for comment.

The NFL formed a committee last year to consider changes to its ownership rules. Commissioner Roger Goodell said in March that the league was “close to outlining a course of action” and that “a lot of work remains to put that course of action into action.”

The Washington Commanders were the last NFL team to be sold in a record-breaking $6.05 billion deal.

With team valuations rising, private equity may prove to be an alternative option for selling future league franchises.

(Reporting by Pretish MJ and Mrinmay Dey in Bengaluru; Editing by Pooja Desai)