Private equity firms are “quietly preparing funds to invest exclusively” in the NFL as a "potential precondition for being allowed to hold stakes in teams that make up the world’s richest professional sports league," according to sources cited by Germano & Gara of the FINANCIAL TIMES. At least two firms have “begun exploring investors’ interest in an NFL fund.” The NFL is the only North American sports organization “that has not yet opened itself to institutional investment,” though league owners are “expected to approve institutional investment as soon as next month.” They are “still debating the structure of the funds and specific restrictions that would be placed on investors.” Sources said that the NFL is “asking for investment groups to create American football-only funds that would preclude them from investing in sports teams from other leagues.” The concept “would mirror an existing fund” set up by Blue Owl, the asset manager of Dyal HomeCourt Partners, to invest exclusively in NBA teams. The NFL is “also considering whether it will only allow minority common-equity investments,” and “not a more senior security that has a higher priority or receives a special coupon or dividend.” The percentage stake that a team can sell to outside investors is “still under discussion” (FINANCIAL TIMES, 4/18).
