Aman Sankineni
The National Football League (NFL) has operated within strict ownership rules and tight control for decades. Yet a rule change was announced in March 2023 that is bringing stark change to the world of NFL ownership, with institutional investors such as private equity funds being allowed to purchase and hold minority stakes in teams.[1] This represents a significant shift from rules that had historically only allowed teams to have limited partners but never allowed institutional investment. Under the new rule changes, a total of 10% of a team can be owned by institutional investors like private equity funds, with independent stakes representing a minimum of 3% ownership and a list of permitted funds.[2] Soon after the rule change was announced, teams moved ahead with the process, with the Buffalo Bills and Miami Dolphins both confirming private equity investment in December 2024.[3] More recently, the San Francisco 49ers are reportedly weighing a sale of up to 10% of the team.[4]
The rule change comes with specific limits. No voting power is attached to minority ownership, and controlling owners still must own at least 30% of the team.[5] The NFL’s commissioner, Roger Goodell, even came out and told reporters that “this won’t change a thing”.[6] Yet underneath this surface, this move has sparked a larger debate about the role that private equity has in sports, and the positive and negative consequences that accompany the move.
Critics point to the Premier League as an example of its failures, a symbol of a sport that has turned from a fan favorite into a corporate shill, prioritizing revenue and profits over the fan experience.[7] Protests have erupted over ticket prices, stadium quality has diminished in the chase to cut costs, and fans are being priced out of games that have turned into networking events rather than embracing the true spirit of the game.[8] In a league that has already faced criticisms for these issues, with NFL ticket prices increasing, gambling commercials and advertising at every turn, and the Super Bowl becoming increasingly transactional and impossible for true fans to attend, many fear that private equity’s entrance to the NFL only signifies the beginning of the end.
On the flip side, proponents of private equity point to the specific limits imposed on the firms entering the NFL landscape, and the limited amount of influence they will have. Supporters argue that the increased revenue and profits can go towards things that will improve the fan experience, such as new NFL stadiums, increased money for teams to spend on players and their rosters, and improved amenities for both fans and players alike.[9] The vision is for private equity to turn the NFL into an attraction beyond just the sport, with new stadiums attracting tourists to cities, fan experiences and renovations improving the facilities for both fans and players, and increased sponsorship deals with other organizations and companies.[10]
The true effects of private equity remain to be seen, as the rule change is still too recent to see any large effects. But one way or the other, fans should prepare for new experiences as private equity takes on the gridiron.
[1] Judy Battista, NFL owners vote to allow private equity funds to buy stakes in teams, NFL (August 27, 2024), https://www.nfl.com/news/nfl-owners-vote-to-allow-private-equity-funds-to-buy-stakes-in-teams [https://perma.cc/S2DU-KQKE] [https://web.archive.org/web/20250220221542/https://www.nfl.com/news/nfl-owners-vote-to-allow-private-equity-funds-to-buy-stakes-in-teams].
[2] Id.
[3] Alex Donaldson, 49ers weigh up private equity sale as Rangers investment rumors mount, Sportcal (February 20, 2025), https://www.sportcal.com/news/49ers-weigh-up-private-equity-sale-as-rangers-investment-rumors-mount/?cf-view [https://perma.cc/5DAM-CCE4] [https://web.archive.org/web/20250221230951/https://www.sportcal.com/news/49ers-weigh-up-private-equity-sale-as-rangers-investment-rumors-mount/].
[4] Id.
[5] Id.
[6] Id.
[7] Aaron Timms, Cold, ravenous and predatory, private equity is slouching towards the NFL, The Guardian (October 2, 2024), https://www.theguardian.com/sport/2024/oct/02/cold-ravenous-and-predatory-private-equity-is-slouching-towards-the-nfl [https://perma.cc/TG7L-S7BG] [https://web.archive.org/save/https://www.theguardian.com/sport/2024/oct/02/cold-ravenous-and-predatory-private-equity-is-slouching-towards-the-nfl]
[8] Id.
[9] Colin Fisher, There’s A New Player In The NFL – Private Equity, Michigan Journal of Economics (October 26, 2024), https://sites.lsa.umich.edu/mje/2024/10/26/theres-a-new-player-in-the-nfl-private-equity/ [https://perma.cc/52TV-H23A] [https://web.archive.org/web/20250222010145/https://sites.lsa.umich.edu/mje/2024/10/26/theres-a-new-player-in-the-nfl-private-equity/].
[10] Randall Williams & Ira Boudway, Business of Sports: Private Equity in the NFL, Good or Bad? (August 30, 2024),
https://www.bloomberg.com/news/newsletters/2024-08-30/will-nfl-s-private-equity-investment-approval-benefit-the-league [https://web.archive.org/web/20250222010455/https://www.bloomberg.com/news/newsletters/2024-08-30/will-nfl-s-private-equity-investment-approval-benefit-the-league]