The National Football League (NFL) has officially opened the door to private equity investment, ending its longstanding resistance to institutional capital. In a move that mirrors trends seen in other major sports leagues such as the NBA, NHL, and MLB, the NFL has now allowed private equity firms to purchase stakes in individual teams. The decision marks a shift in how America’s most popular sport could be managed in the future, though league officials have stressed that strict limits have been put in place to mitigate drastic changes, at least for now.
One notable dissenter in the vote was Mike Brown, owner of the Cincinnati Bengals, who has long advocated for the financial viability of smaller franchises. His vote against the proposal reflects concerns that this shift may eventually widen the financial gap between the league’s wealthiest and smaller teams.
The league has been careful to limit the scope of private equity’s involvement, at least initially. Funds are only allowed to acquire a maximum of 10% in any franchise, with no voting rights or governance roles, and must hold their investment for a minimum of six years. Additionally, only four participating funds will be allowed to invest in this first wave, and other institutional investors such as sovereign wealth funds and pension funds remain excluded for now. However, many fear that this is just the beginning of a larger transformation.
“The pool of ultra-rich individuals able to afford to buy franchises of this size is getting smaller, even as the financial burden of maintaining them grows,” said one source, highlighting why the league has turned to private equity. The average NFL team is now valued at $5.9 billion, far surpassing the NBA’s $4 billion and Major League Baseball’s $2.6 billion. With soaring valuations, the NFL is in a bind—needing cash infusions without relinquishing too much control to Wall Street.
New England Patriots owner Robert Kraft sought to reassure fans, saying that private equity involvement would not compromise the community-based values that have traditionally guided NFL ownership. “Limiting private equity investment to 10% per team is a way to keep it under control from our point of view,” he told CNBC. But for many critics, this new era of ownership seems bound to shift the league’s priorities, emphasizing profit and commercialism over the community.
“Everything we deplore about the economy today—the precarity, the ruthlessness, the inhumanity—has found its own sad replica in modern sports ownership,” one industry analyst noted, drawing parallels to European football’s financialization. The Premier League, where new stadiums rise in cities where fans are often priced out of attending games, serves as a cautionary tale for how unchecked financial interests can disrupt the relationship between teams and their communities.
As the NFL opens its doors to institutional capital, some worry it risks following the same path. Investor-driven ownership, especially those focused on generating revenue rather than fostering team culture, could widen financial inequalities and shift the league towards a model that prioritizes revenue maximization over the well-being of its players and fans.
The league’s history of prioritizing team ownership by wealthy individuals and families is now on the verge of transformation. Many are concerned that the move to allow private equity investment will create a financial frenzy that drives up team valuations even further, and eventually push the NFL closer to the highly commercialized and transactional environment seen in other professional sports leagues around the world.
“We’ve seen this story before,” one commentator warned. “Private equity investors will start with passive stakes, but soon, as valuations continue to rise, the demand for greater involvement and a bigger share of the profits will follow. It’s only a matter of time.”
The NFL’s decision may seem cautious, but its long-term implications are anything but clear. As the league continues to evolve, the tension between maintaining its community-based roots and embracing the financial opportunities offered by Wall Street will shape its future for years to come.
