NFL may approve private equity ownership; firms pledge $12 billion.

• On Tuesday, private equity firms may be granted up to 10% ownership stake in NFL teams by NFL owners.
• The initial firms involved in the deal are Ares Management, Sixth Street Partners, and Arctos Partners, Dynasty Equity, Blackstone, Carlyle Group, and CVC Capital Partners, according to sources.
• Private equity investment in the NFL is becoming increasingly difficult due to rising valuations, making it harder for owners to purchase a team.

The NFL's most exclusive club is about to let in new members.

In Eagan, Minnesota, on Tuesday, the National Football League's 32 owners are expected to vote on allowing private equity firms to buy up to a 10% stake of a team. Each fund or consortium will be able to do deals with up to six teams.

The initial approved firms for the project will consist of Sixth Street Partners, Arctos Partners, and a group known as "The Avengers," which includes Dynasty Equity and CVC Capital Partners, according to sources.

On average, each team that receives an investment will have $500 million of added capital, as four investor groups with a total of $2 trillion in assets plan to commit $12 billion of capital over time.

In July, CNBC reported that the NFL Commissioner, Roger Goodell, stated that the league had received significant interest from private equity firms.

The committee, established in September by the league, has been meeting with private equity firms to explore the possibility of funding.

Private equity investment is not yet allowed in the NFL, and the league is cautious about the issue, only allowing a limited number of participants at a lower rate compared to other professional sports leagues.

Up to 30% private equity ownership is permitted in the National Basketball Association, Major League Baseball, National Hockey League, and Major League Soccer.

In July, Goodell stated to CNBC that he believes the 10% is a complement to the current ownership structure and that it could be increased at some point in the future.

With rising NFL team valuations, the pool of potential owners who can afford to purchase teams has decreased.

During the sale of the Washington Commanders last year, the dynamic was evident as the franchise was sold for a record $6.05 billion to an ownership group comprising Apollo cofounder Josh Harris and 20 other investors.

In June, the NFL received a "wake-up call" due to the process that Harris described.

According to Harris, it is difficult for anyone to write a $5 billion equity check, except for the wealthiest 50 individuals in the world.

The NFL's new capital will provide funding for stadiums and related projects.

Currently, the Buffalo Bills and Tennessee Titans are constructing new stadiums, while the Cleveland Browns, Chicago Bears, and Washington Commanders are actively seeking new stadiums in the future.