Sale of Minority Interests in NFL Teams

By Martin J. Greenberg and Harly Johnson

The perception of National Football League (“NFL”) franchise ownership is changing. It has become a highly attractive investment strategy, drawing interest from top private equity firms.[1] In fact, seven of the last ten NFL franchises sold have outperformed the S&P 500 in percentage gains since their purchase.[2]

According to Forbes, NFL franchises make up six out of ten of the most valuable North American Sports franchises.[3] Over the past three decades, it has been reported that NFL franchise valuations have soared. In 1989, the Dallas Cowboys were purchased for a reported $150 million — a price that was considered staggering at the time.[4] Today, the reported team value is $11 billion.[5] The latest NFL team sale occurred in 2023 with the sale of the Washington Commanders to Josh Harris and a collection of limited partners, including Magic Johnson, for a reported $6 billion.[6] According to Forbes[7], the three most valuable NFL franchises are the Dallas Cowboys: $11 billion, the Los Angeles Rams: $8 billion, and the New England Patriots: $7.9 billion, while the three least valuable teams are the Buffalo Bills: $5.35 billion, the Arizona Cardinals: $5.3 billion, and the Cincinnati Bengals holding the lowest reported value of $5.25 billion.[8]

Average NFL Franchise Value (2020-2024)[9]

European Football pioneered the practice of allowing private equity firms to fully own teams in 2006, igniting a surge of interest in fund investments in sports franchises.[10] North American sports leagues followed suit in 2019 by permitting private equity involvement.[11]

The NFL was the last professional North American sports league to allow private equity investment after a vote was passed by the NFL owners on September 1, 2024.[12] With the passage of Resolution JC-7, the NFL owners stipulated that a total of 10% of a team can be owned by private equity funds.[13] This 10% ownership can be made up of multiple funds, with each stake being no less than 3% of team ownership.[14] A fund may hold stakes in up to six teams at one time; however, there is no voting power attached to such ownership stakes.[15] Moreover, no more than 20% of the fund’s assets can be invested in any one club and no one person can account for more than 7.5% of the assets of any investing fund.[16] The list of permitted funds consists of Arctos Partners, LP; Ares Management Corporation; Sixth Street; and a consortium group including Blackstone, Carlyle, CVC, Dynasty Equity and Ludis.[17]

After resisting private equity investment for so long, the question for the NFL becomes, “why now?” The answer is simple: even the wealthiest individuals need liquidity to cover operating expenses.[18] Many league owners have net worths in the billions, but a significant portion of their wealth is often tied up in the NFL franchise they own.[19] It is reported that it took multi-billionaire Josh Harris months and a group of approximately twenty limited partners to be able to purchase the Washington Commanders for $6 billion.[20] Josh Harris, with a reported net worth of approximately $11.2 billion as of January 31, 2025, ranks among the wealthiest NFL owners.[21] In contrast, Mike Brown, owner of the Cincinnati Bengals, has a reported net worth of about $3.9 billion.[22] This places Brown in the lower tier of NFL owners in terms of net worth.[23] Most ownership groups could benefit from the capital influx provided by private equity investments to strengthen their rosters. The NFL employs a “hard cap” system to maintain competitive balance across the league.[24] Over the past decade, the cap has increased by $131,720,000, nearly doubling in size.[25]

[26]

However, most of the NFL community considers the cap a “soft cap” because teams are able to exceed it by giving players bonuses which do not count toward their cap limitation.[27] Owners with lower net worths could use this new source of capital to keep their teams competitive on the field. Additionally, NFL owners are likely to invest this capital in offsetting the rising costs of building or upgrading their team’s stadium.[28] For example, “the recently built SoFi stadium cost over $5 billion and took almost four years to build. Many of the NFL owners do not have, or are unwilling to put up if they do, the necessary capital to fund such projects.”[29] In recent years, owners have faced increasing difficulty securing funding from local governments for new stadium developments. With private equity now involved, owners can rely on their new investors to assist in public-private partnerships for the construction costs of lavish new stadiums, rather than depending on reluctant local governments for financial support.

The first two NFL teams to sell minority interests to private equity funds were the Buffalo Bills and the Miami Dolphins.[30] Arctos officially became part of the Buffalo Bills ownership group by acquiring a 10% stake in the team.[31] Additionally, asset management firm Ares Management received approval to purchase a 10% stake in the Miami Dolphins, including Hard Rock Stadium and the Formula 1 Miami Grand Prix.[32] The Miami Dolphins sale to Ares set the franchise at a valuation of $8.1 billion.[33]

The NFL’s decision to embrace private equity investment marks a significant shift in the financial landscape of professional football. After years of resistance, the League has acknowledged the increasing costs of franchise operations, player salaries, and stadium development, making outside capital a necessity rather than a luxury.[34] The ability for private equity firms to hold minority stakes provides owners with much-needed liquidity while preserving the league’s traditional ownership structure.[35] As the reported valuations of NFL franchises continue to soar, private equity investment is likely to become an essential tool for sustaining competitiveness both on and off the field. The sales of minority stakes in the Buffalo Bills and Miami Dolphins signal the beginning of this new era, and it is expected that other franchises will follow suit.[36] While the long-term impact remains to be seen, one thing is clear, the NFL has entered a new phase of financial evolution, ensuring that the business of football remains as dynamic as the game itself.

 

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Harly Johnson is a law student at Marquette University Law School, on track to earn his Juris Doctor degree and a Sports Law Certificate from the National Sports Law Institute by May 2026. Originally from San Francisco, he is an avid bay area sports fan. He earned his bachelor’s degree in history with a minor in interdisciplinary writing from Wake Forest University in 2023. As a student intern for Wake Forest Athletics, Harly worked in the communications department, drafting articles for the athletic department’s website, and helping plan content while managing six social media accounts for NCAA Division I teams. In the summer of 2024, he interned at the District Attorney’s Office in Colorado Springs, CO, where he developed legal research skills, corresponded with Deputy District Attorneys, and wrote legal briefs for case filings. Beyond his professional experience, Harly contributes to the law school community as a member of the Marquette Sports Law Review. His education, legal experience, and background in athletics provide him with a unique perspective on sports law and management.

 

Thank you to Danelle Anderson Welzig for assistance in revising and editing this article. Danelle holds a Bachelor of Science in Psychology from the College of Charleston, as well as an Associate Degree in Criminal Justice and Certificates in Paralegal Studies, Law Enforcement, and Corrections. Danelle has been a paralegal for 20 years in the areas of complex construction litigation, real estate and sports law. She has been a paralegal with The Law Office of Martin J. Greenberg, LLC since 2013.

[1] 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/.

[2] Id.

[3] Jon Hoefling, Who are the most valuable sports franchises? Forbes releases new list of top 50 teams, USA Today, (December 12, 2024), https://www.usatoday.com/story/sports/2024/12/12/forbes-2024-list-50-most-valuable-sports-franchises/76947858007/.

[4] Michael Ozanian, The Cowboys are worth $11 billion. Here’s how Dallas went from losing $1 million a month to topping the NFL in value, CNBC, (September 5, 2024). https://www.cnbc.com/2024/09/05/dallas-cowboys-most-valuable-nfl-team.html.

[5] Brendan Coffey, NFL Private Equity Ownership Rules: PE Can Now Own Stakes in Teams, Sportico, (August 28, 2024), https://www.sportico.com/feature/nfl-private-equity-ownership-rules-1234784167/.

[6] Judy Battista, NFL owners vote to allow private equity funds to buy stakes in teams, NFL.com, (August 27, 2024), https://www.nfl.com/news/nfl-owners-vote-to-allow-private-equity-funds-to-buy-stakes-in-teams.

[7] Forbes, The NFL’s Most Valuable Teams 2024, Forbes, (August 29, 2024), https://www.forbes.com/sites/justinteitelbaum/2024/08/29/the-nfls-most-valuable-teams-2024/.

[8] Id.; Fisher, supra note 1.

[9] Forbes, supra note 7.

[10] Brendan Coffey, Asli Pelit, Global Soccer Private Equity Ownership Rules: Can PE Own Teams?, Sportico, (June 24, 2024), https://www.sportico.com/feature/global-soccer-ownership-rules-private-equity-1234784490/.

[11] Coffey, supra note 5.

[12] Battista, supra note 6.

[13] Michael Rothstein, NFL owners approve private equity investment, ESPN, (August 27, 2024), https://www.espn.com/nfl/story/_/id/41013650/nfl-owners-approve-private-equity-investment.

[14] Battista, supra note 6.

[15] Coffey, supra note 5.

[16] Id.  

[17] Battista, supra note 6.

[18] Id.

[19] Fisher, supra note 1.

[20] Alex Kirshner, The NFL Does Not Need to Fear Private Equity, Slate, (December 12, 2024), https://slate.com/business/2024/12/nfl-eagles-valuation-minority-stake-buffalo-bills-miami-dolphins-private-equity-ownership.html.

[21] Forbes, Profile: Josh Harris, Forbes, (February 4, 2025), https://www.forbes.com/profile/josh-harris/.

[22] Forbes, Profile: Mike Brown, Forbes, (February 4, 2025), https://www.forbes.com/profile/mike-brown-1/.

[23] Alex Kennedy, NFL’s Richest Owners Ranked From 32 to 1, Pro Football Network (August 14, 2024), https://www.profootballnetwork.com/nfl-richest-owners-net-worth-ranked/.

[24] Dallas Robinson, How Does the NFL Salary Cap Work? NFL Salary Cap Explained, Pro Football and Sports Network, (February 23, 2024), https://www.profootballnetwork.com/how-does-nfl-salary-cap-work/.

[25] Spotrac, NFL Cap History, Spotrac.com (January 30, 2025), https://www.spotrac.com/nfl/cba.

[26] Id.

[27] Kirshner, supra note 20.

[28] Id.

[29] Id.

[30] Eric Jackson, NFL’s First Private Equity Deals Approved for Bills, Dolphins, Sportico, (December 11, 2024), https://www.sportico.com/business/team-sales/2024/nfl-private-equity-deals-approved-bills-dolphins-1234819983/.

[31] Fortune, Arctos Partners enters NFL with 10% stake in Buffalo Bills amid growing private equity interest, PE Insights, (January 23, 2025), https://pe-insights.com/arctos-partners-enters-nfl-with-10-stake-in-buffalo-bills-amid-growing-private-equity-interest/#:~:text=Arctos%20Partners%2C%20through%20its%20%249.9,to%2010%25%20stakes%20in%20franchises.

[32] Jackson, supra note 30.

[33] Id.

[34] Kirshner, supra note 20.

[35] Id.

[36] Fortune, supra note 31.