NFL set to vote on bombshell ownership proposal
A big change could be coming to the NFL as the league will vote on Tuesday on a proposal that would allow owners to sell a percentage of their team to private equity firms. This would certainly be a big change, and NFL owners are expected to vote in favor of this proposal.
“A new NFL world: NFL owners will vote today on a proposal that will allow teams to sell up to a total of 10 percent of each team to a list of permitted private equity firms,” Adam Schefter said in a post.
The word “permitted” is extremely important there. When it comes to private equity firms and sports, a lot of people think about Saudia Arabia’s PIF. Saudi Arabia is very involved with the sports world, with soccer and golf being two of the biggest sports that they are involved with. In fact, a big story recently dropped involving a former Colorado football coach traveling to Saudi Arabia for NIL purposes. There is definitely some controversy there, but the Saudi Arabia PIF could be blocked in this proposal.
“The initial approved firms will include Ares Management, Sixth Street Partners and Arctos Partners, in addition to a consortium nicknamed ‘The Avengers’ that includes Dynasty Equity, Blackstone, Carlyle Group, and CVC Capital Partners,” A report from CNBC said.
If this proposal does get voted into place, it will give NFL teams a lot of money for new projects like new stadiums. There are a few different teams that are hoping to build new stadiums in the near future, but we have seen some of them run into financial barriers. If they are able to work with private equity firms, it would make things on the financial side much easier.
The ownership that teams would be allowed to sell is 10%. The NFL is currently the only major professional sports league that doesn’t allow private equity investment as the NBA, MLB and NHL all do. In fact, all three of those leagues allow up to 30% ownership to be sold.
The NFL is the last league to make this move, but it sounds like it will likely happen. They are easing into things by just going with 10%, but it wouldn’t be a surprise to see that number go up in the near future because of the 30% that is allowed in the MLB, NHL and NBA. Big changes could be coming to the NFL soon, and we should know more about the results of the vote shortly.
The post NFL set to vote on bombshell ownership proposal appeared first on ClutchPoints.
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