NFL Rule Could Open Door For Big Money Investors: Will Your Team Go Up For Sale?
Portfolio Pulse from Chris Katje
The NFL is considering a rule change to allow teams to sell up to 30% of their franchise to private equity, potentially opening investment opportunities in NFL teams. The Green Bay Packers are currently the only publicly traded NFL team, offering a ceremonial investment. A special committee is reviewing the rule change, with a decision expected by October. Private equity firms would need NFL approval and possibly a dedicated fund for team ownership. This change could help teams capitalize on rising valuations and fund new ventures. NFL team valuations are increasing, with recent sales setting records. Private equity firms like RedBird Capital Partners, Ares Management Corp., and Arctos Partners have shown interest in sports team investments. Blue Owl Capital (NYSE:OWL), owning Dyal Homecourt, could benefit from this rule change by potentially investing in NFL teams, similar to its NBA team investments.
May 08, 2024 | 6:56 pm
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Blue Owl Capital, through its Dyal Homecourt sports investment subsidiary, could potentially invest in NFL teams if the NFL approves the rule change allowing private equity investments. This could mirror its strategy in the NBA, where it has invested in multiple teams.
The potential for Blue Owl Capital to invest in NFL teams is based on the NFL's consideration of allowing private equity investments up to 30% in teams. Given Blue Owl's history of investing in NBA teams through Dyal Homecourt, a similar strategy could be applied to the NFL if the rule change is approved. This could provide Blue Owl with new investment opportunities and possibly enhance its portfolio's value, assuming they leverage their experience in sports team investments effectively.
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