Roger Goodell says NFL is open to private equity team ownership | Wilnesh News

The National Football League is considering allowing minority private equity ownership of up to 10% of its 32 teams, Commissioner Roger Goodell said in an exclusive interview with CNBC on Thursday.

“As the movement grows, we want to make sure that our policies reflect that,” Goodell told CNBC’s Julia Boorstin in an interview at Allen & Co.’s annual Sun Valley conference. “We’ve had tremendous interest[from private equity firms]which we believe is probably limited to us, probably no more than 10% of the team. We think it’s complementary to our business.” Ownership and support our Ownership Policy.

Goodell said the NFL hopes to have a new ownership policy in place by the end of the year. He said a 10 percent cap would be a starting point and the league was willing to raise the cap in time.

Although other major sports leagues in the United States, including the National Basketball Association, Major League Baseball, National Hockey League and Major League Soccer, allow private equity holdings of up to 30%, the NFL has always refused to obtain funds from institutional funds such as private equity. , like limited partners are individuals or families.

WATCH: NFL Commissioner Roger Goodell discusses ownership policy and international expansion

But as the NFL signs lucrative media deals, franchise valuations have steadily risen, meaning fewer and fewer people can afford team ownership. In 2023, a group led by Josh Harris, co-founder of private equity firm Apollo Global Management, paid $6.05 billion to acquire the Washington Commanders, a record-breaking deal. The highest amount ever spent on an American professional sports franchise.

“Unless you’re one of the 50 richest people[in the world],” Harris told CNBC “Squawk Box” co-host Andrew Ross Sorkin at the CNBC CEO Council Summit. Writing a $5 billion equity check is pretty difficult for anyone.

Harris found 20 people to help him raise money, including former NBA star Magic Johnson, former Google CEO Eric Schmidt, and Blackstone Group executive David Blitzer ), who worked with Harris to acquire the NBA’s Philadelphia 76ers and NHL’s New Jersey.

“Raising that amount of money is unique; it’s never been done before,” Harris said. “I think it might cause people to reconsider whether to have private equity or institutional investors in the NFL.”

Unlike other professional sports leagues in the United States, the National Women’s Soccer League allows private equity firms to acquire majority control of franchise teams. Private equity incentives around meeting investment targets and exit thresholds could alter ownership incentives to the discomfort of larger sports leagues.

Minority owners often have little or no decision-making power over the team. It might be a relief if the NFL allowed private equity investors, but it would also limit the number of individuals interested in taking smaller stakes in a team.

“These people are really rich and successful. They’re used to being the center of the universe. Now you’re gone and I need $2.5 billion. Great, what do I get? Nothing,” said store owner Ted Leon Ted Leonsis said. washington capitals, wizard and mystic, told ESPN in May. “Do you have any control? What’s the role? No, you’re a passive investor. You’re going to have your name on some website, and then you can tell people I own part of an NFL team.”

Private equity firms, tasked with finding investment vehicles to generate returns from the assets they manage, may be better suited to minority stakes.