The NFL is considering taking a share of private equity investment profits as a vote on the matter approaches.
- If the NFL approves private equity ownership of team stakes, the league plans to take a share of the profits from the sale.
- The NFL's decision may discourage future private equity investment.
- At the league meeting on Tuesday, the plan to vote on private equity ownership of up to 10% for its teams will be discussed.
According to sources, the National Football League has informed owners and investment firms that they plan to take a share of any future profits from private equity sales of ownership stakes.
NFL owners are currently holding a meeting to discuss a proposal that would allow private equity firms to own a maximum of 10% stake in teams.
Private equity investment has never been permitted in the league before. Major League Baseball, the National Basketball Association, and the National Hockey League allow up to 30% of teams to be owned by investment firms, with a cap for individual funds ranging from 15% to 20%.
The NFL wants a portion of the profits from private equity firms' investments to be returned to the league.
The NFL is considering taking a portion of profits, which may discourage private equity investment and impact the owners' vote on the matter. The league is currently reviewing potential buyers, including Blackstone Partners, Sixth Street, and CVC Partners.
The NFL declined to comment.
In the past 20 years, the league's value has increased by 710%, while the S&P 500 index has risen by approximately 660%.
This story is developing. Please check back for updates.
Business News
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