Report: NFL Owners Establish 'Framework' to Allow Private Equity Investment in Teams

NFL owners reportedly agreed to a framework that will allow private equity to join ownership groups.

Ben Fischer of the Sports Business Journal reported the league will finalize a policy in the "coming months."

The NFL is last remaining major professional sports league in the United States that does not allow any private-equity investment in its teams.

Sixty-two teams in North American professional sports have private equity investors. Private equity has looked to get into the sports world in large part because of the rapidly appreciating value of sports franchises and their television deals.

The NFL is guaranteed $125.5 billion in television revenue over the course of its TV deals, which expire in 2033.

It's highly unlikely the NFL will allow firms to become the majority owners of sports franchises. They will likely be capped at a certain percentage, and majority owners will be able to reap the rewards of minority investment without giving up team control.

"They've been very deliberate in the way they've evaluated different alternatives," NFL commissioner Roger Goodell said in March of possible rule changes regarding private equity. "We're making progress. I think there'll be some changes, maybe as early as May, probably closer to October."

The skyrocketing value of franchises is a double-edged sword, as it shrinks the pool of potential minority owners. Allowing public equity investment would go a long way toward expanding the pool and allow owners to have more liquidity for potential improvements to their franchise.