San Francisco 49ers’ No. 13 Brock Purdy prepares during the first quarter against the Kansas City Chiefs during Super Bowl 58 at Allegiant Stadium in Las Vegas on February 11, 2024 Team.
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The National Football League has notified owners and investment firms that it intends to take a percentage of potential private equity profits from future sales of ownership stakes, people familiar with the matter said.
NFL owners plan to vote on a proposal Tuesday that would Allow private equity firms to hold up to 10% of shares In the team. The owners meeting was held on Tuesday afternoon.
The league has never allowed private equity investment before. Major League Baseball, the National Basketball Association and the National Hockey League have all allowed up to 30% of teams to participate owned by investment companybut the upper limit for individual funds is between 15% and 20%.
No other alliance charges all private equity firms a percentage of the so-called spread (a percentage of a fund’s investment profits that managers typically receive as compensation), though it’s unclear whether the program applies to all private equity firms or just some. Private equity firms, or to which private equity firms. The NFL has informally told investment firms that if they get a return on their investment, it wants to give some of the profits back to the league.
It’s unclear whether the NFL’s plan to capture some of its profits would deter future investments from private equity or influence owner votes. The alliance is approving specific funds as potential buyers, including Blackstone Partners, Sixth Street and CVC Partners.
The NFL declined to comment.
According to Sportico, the total value of the league has increased by 710% from US$23.46 billion to US$190 billion in the past 20 years. The S&P 500 Index rose approximately 660% during the same period.
This story is developing. Please check back for updates.
