Why Private Equity is Eyeing the NFL – and Why It Matters
October 23, 2024 – ArticleCorporate attorneys Eric Perlmutter-Gumbiner and Alexa Steinberg authored, "Why Private Equity is Eyeing the NFL – and Why It Matters" in Professional Sports and the Law.
Excerpts:
The recent surge in private equity (PE) interest in the NFL stems from the league’s decision in 2021 to allow PE investors to purchase up to a 10% stake in a team. For the first time, institutional investors now have access to one of the most valuable asset classes in professional sports—a privilege previously reserved for individuals and small groups.
This article explores how this investment opportunity benefits both PE investors and team owners, highlights the rapid rise in team valuations, and discusses potential challenges these new partnerships may present. It also speculates on the future impact of PE majority ownership and offers guidance to team owners on selecting the right outside counsel to navigate these evolving dynamics.