In a major shakeup, NFL owners have voted to allow private equity firms to buy stakes in teams.
The policy allows purchasing up to 10% of any franchise, with the funders not having voting rights on the teams. In addition, funds can only be invested in a maximum of six teams, and the minimum investment in any franchise is 3%.
According to ESPN, the measure was passed by a vote of 31-1, with the Cincinnati Bengals the only team voting against the change.
“This won’t change a thing,” NFL Commissioner Roger Goodell said on Tuesday. “This is 10 percent of a team. All it is is a silent position that would allow access to capital for those teams that wish to offer 10 percent of their team. They will not be in any kind of decision-making influence in any way. It was very important when we began this that we strengthen the ownership. … We think the single-owner structure has been very valuable … and this does not impact that at all.”
The NFL was the last major sports league in the U.S. to allow funding from private equity firms.
Goodell said that there had been interest in institutional investment opportunities for a while and noted that the NFL caps the ownership at 10%. In comparison, other major sports leagues have a cap of 30%.
“So [it’s a] much less significant position (than other leagues),” Goodell added. “I think it’s an appropriate thing to give teams that liquidity to reinvest in the game, into their teams. I think it’s a positive development for us. I don’t think all teams will take advantage of that, but they will if they need that. It’s a very good opportunity for them.”
