NFL approves private equity investment in teams

The vote took place during an owners meeting in Minneapolis on Tuesday and marks the end of the NFL’s era as the only one of the four major US sports leagues that did not allow institutional investment. The vote comes after a special committee of NFL owners drafted a proposal for possible changes to the league’s ownership to allow for private equity investment.

Under the new rules, private equity can own up to 10 percent of a team, and investors must maintain their position for at least six years.

The NFL still had some restrictions, only allowing investment from a select group of investors. Pre-approved firms include Arctos Partners, Ares Management Corporation, Sixth Street, Blackstone, Carlyle, CVC Capital Partners, Dynasty Equity and Ludis, which is an investment firm led by former NFL player Curtis Martin.

An Ares spokesman said the firm was “honored” to have the chance to invest in NFL franchises. “The NFL has long generated deeply loyal fan bases, innovative media approaches and some of the most watched and admired sports franchises in the world,” the spokesperson said. “We are excited about the opportunity to support the continued growth of NFL teams through Ares’ extensive investment experience and strong networks of relationships in the sports, media and entertainment sectors.”

Arctos, which has several major sports investments, including the NBA’s Golden State Warriors and MLB’s Houston Astros, expressed a similar sentiment. “Pending final approval, Arctos will be the only firm approved to invest in equity in each of the five most popular North American major leagues,” a spokesman said.

Luisa Beltran contributed to the reporting of this article.