NFL owners approve changes during Minneapolis meeting
MINNEAPOLIS (FOX 9) - NFL owners voted Tuesday to allow select private equity firms to invest up to 10% of a team stake.
The NFL is the last major sports league to allow private equity investment, as rising valuations make it harder for owners to buy in.
Who can buy in?
NFL Chief Finance Officer Joe Sinclair said there are only 4 permitted funds, all "blue chip":
- Arctos Partners, LP; Ares Management
- Ares Mangement Corporation
- Sixth Street
- Consortium group consisting of: Blackstone, Carlyle, CVC, Dynasty Equity, and Ludis – a platform founded and led by Curtis Martin, retired NFL running back & Pro Football Hall of Fame member
Who led the change?
The Special Committee on Ownership Policy members include Falcons owner Arthur Blank, Browns owner Jimmy Haslam, Broncos owner Greg Penner, and Chiefs owner Clark Hunt.
What else?
- The terms of the proposed policy include that investments are common equity and the maximum aggregate fund investment in the club is 10%. The minimum investment by one fund in a club is 3% ownership.
- The maximum number of clubs invested by any fund or related funds is a default of 6. The minimum hold period for fund transfer restrictions is 6 years.
- Permitted ownership by league owner and immediate family in a fund is 3%. The ownership threshold for investor disclosure reps and warranties is also 3%.
- The minimum committed capital of funds is $2 billion. The cap on single investor ownership of funds is 7.5%, while the maximum % of fund invested in one club is 20%.
NFL Commissioner Roger Goodell gave public credit to Curtis Martin for showing tremendous leadership in bringing together several blue-chip firms to create the four permitted funds. Martin will be invested personally and through his company which is "primarily focused on getting people of color into ownership positions."
Goodell added that is something the NFL has long fought for and has been trying to find ways to encourage diversity in ownership.