NFL Rumors: Owners Set to Vote on Rule Change to Allow Private Equity Investment

The NFL could be moving closer toward allowing private equity firms to invest in franchises.

Per Pro Football Talk's Mike Florio, the league has scheduled a meeting of all 32 team owners for Aug. 27 to vote on a rule that would allow a portion of franchises to be sold to private equity.

Ben Fischer of the Sports Business Journal reported in May that NFL owners agreed to a framework that would allow private equity to join ownership groups, and the policy was expected to be finalized in the "coming months."

Florio noted NFL commissioner Roger Goodell previously asked owners to hold the Aug. 27 date, but the actual meeting "hinged on the committee that has been considering the private equity issue coming up with a firm and final proposal."

Among the factors being considered, according to Florio, are the maximum percentage a private equity firm can invest; whether a team can sell portions to multiple different firms; if one firm can own a stake in multiple teams; and if a team can buy back the percentages that have been sold to private equity.

The maximum percentage of a franchise able to be sold is expected to be set at 10 percent, per Florio.

The NFL is the last of the major sports leagues in the United States that doesn't allow private equity ownership. The NBA, NHL, MLB and MLS all allow private equity to own up to 30 percent of a franchise.

Per Kurt Badenhausen of Sportico, the NFL has granted meetings to seven different private equity firms to discuss their potential ownership inclusion in the future.

Private-equity investment is being considered by the NFL at a time when franchise values continue to skyrocket. Sportico released a ranking of the top-10 NFL franchises on Tuesday, led by the Dallas Cowboys at $10.32 billion.

Each of the top 10 teams on the list is valued at more than $6 billion. These values do make it increasingly difficult for individuals to purchase a franchise if they become available.

For instance, Josh Harris had to put together a 20-person group to round up the money for his $6.05 billion purchase of the Washington Commanders that was approved by the NFL in July 2023.

Adding private-equity investment would theoretically make it easier to find partners for sports teams, but there are some notable risks that come along with allowing that type of money enter a league.

The NFL would seem to be one of the safest money-making entities in the world. The league generated $13 billion in national revenue last year, with Goodell previously talking about a goal of getting that up to $25 billion by 2027.