Exploring Potential Changes to NFL Ownership Rules: Opening the Door to Institutional Wealth and Private Equity

The NFL is considering a major shake-up in its ownership rules, potentially allowing institutional wealth, including private equity, to invest in teams for the first time ever. This move could open up a wider pool of candidates to purchase a stake in a franchise, ultimately changing the landscape of team ownership in the league.

According to ESPN’s Michael Rothstein, a select committee of NFL owners is exploring this possibility as a way to generate revenue and free up cash for owners to pursue projects like stadium renovations. With the league’s teams continuing to increase in value, the barrier for entry into NFL ownership has become higher than ever before.

While some see this as a lucrative opportunity for investors motivated by profit, others like Ted Leonsis, owner of multiple sports teams, are skeptical. Leonsis questions the appeal of being a passive investor with little to no control over the team, aside from having their name on a website.

Economics professor Brad Humphreys sees potential for private equity firms to be drawn to NFL teams as “profit-making machines,” but acknowledges that there are still many details to be worked out before this concept becomes a reality.

As the NFL explores this new frontier in ownership, it remains to be seen how this potential shift will impact the league and its teams in the long run. Stay tuned for more updates on this developing story.