NFL wants to take percentage of private equity investment profits as vote looms


Brock Purdy, #13 of the San Francisco 49ers, prepares to take a snap in the first quarter against the Kansas City Chiefs during Super Bowl LVIII at Allegiant Stadium in Las Vegas on Feb. 11, 2024.

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The National Football League has informed owners and investment firms that it intends to take a percentage of potential private equity profits on any future sales of ownership stakes, according to people familiar with the matter.

NFL owners are planning to vote on a proposal Tuesday that would allow private equity firms to take a maximum 10% stake in teams. The meeting of owners was underway Tuesday afternoon.

The league has never allowed private equity investment before. Major League Baseball, the National Basketball Association and the National Hockey League already allow up to 30% of teams to be owned by investment firms, though the cap for individual funds is between 15% and 20%.

No other league takes a percentage of the so-called carry — the percentage of a fund’s investment profits that managers typically receive as compensation — for all private equity firms, though it is unclear if the plan would apply to all or only some, or what percentage of the profits the league would take. The NFL has informally told investment firms that if they make a return on an investment, it wants a portion of the profits to be returned to the league.

It is unclear if the NFL’s plans to take a piece of profits would deter future investment from private equity or affect the owners’ vote. The league is in the process of approving particular funds as potential buyers, including Blackstone Partners, Sixth Street and CVC Partners.

The NFL declined to comment.

Over the past 20 years, the league’s total value has risen from $23.46 billion to $190 billion, a 710% gain, according to Sportico. The S&P 500 index has risen about 660% during the same time span.

This story is developing. Please check back for updates.

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