The National Football League is expected to vote today on allowing private equity firms to purchase minority stakes in its teams. Certain private equity firms are expected to be permitted to own up to a 10% stake.
The vote comes as NFL team valuations continue to soar. In 2023, the average NFL franchise was worth $5.1B, up 14% from the previous year, with the Dallas Cowboys topping the list at $9B (see worth of all 32 teams). The NFL previously restricted ownership to individuals and family trusts; however, the high franchise values make it so few individuals can afford team ownership. If owners approve the proposed changes, those wishing to sell stakes would apply to the league’s finance committee, which would then vet applications before presenting for a vote at the next owners' meeting in October.
The NFL is the last remaining major US sports league to not allow private equity ownership. The NBA, NHL, MLB, and MLS allow ownership of up to 30%.
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