CAPITAL BOOST FOR NFL TEAMS

Owners approve private equity investment plan in 'positive development' for US league

- 

National Football League (NFL) owners have voted to allow private equity investment in a landmark move that could see billions of dollars in new funding pumped into the sport, the United States-based league confirmed.

At a meeting in Milwaukee on Aug 27, the owners of the 32 teams gave the green light to a plan that would allow a group of handpicked private equity firms to purchase up to a 10 per cent stake in a team.

The vote represents a significant departure for the way NFL teams are funded. Historically, franchises have been run as family businesses or owned by wealthy individuals.

The move potentially puts billions of dollars of new cash on the table to help pay for new stadiums and other projects for the most popular sport in the US.

According to NFL documents setting out the parameters of the new funding deal, private equity firms must also retain their investment for a minimum of six years.

The NFL has approved three firms Arctos Partners, Ares Management and Sixth Street - as well as a consortium consisting of Blackstone, Carlyle, CVC, Dynasty Equity and Ludis, as the companies allowed to invest.