By: Noah Pearson
Introduction
Since the National Football League’s (NFL) inception in 1920, the NFL has consistently resisted moving away from its tightly controlled ownership structure. Many of these franchises are either sold from one billionaire to the next or are passed down to the owner’s next of kin. But, in August 2024, NFL owners voted to modify its ownership rules to allow pre-approved private equity firms to buy a minority stake up to 10% of team ownership.[1] Furthermore, this minority ownership must be a passive ownership, which eliminates the abilities of investors to control or manage their teams.[2]
Why is the NFL Finally Allowing Private Equity Investment?
In 2010, the average NFL team had a valuation of about $1.1 billion.[3] As of 2025, that number rose to about $7.11 billion.[4] Now that NFL franchises values have increased more than 600% in the past decade and a half, it has become difficult for owners to sell franchises outright due to the hefty price tag of about $7 billion. Additionally, many owners have difficulty selling even small stakes to potential minority owners due to the strict NFL rules regarding ownership transfers.[5] With most team owners over the age of 70 years old, many would assume the franchise would simply get passed down to their son or daughter; that is not the case.[6] Due to the substantial estate tax liabilities heirs would face, many would lack sufficient liquidity to retain ownership of the teams. Absent the ability to sell minority stakes to private equity firms, these franchises can effectively function as illiquid assets.
Short-Term Profit v. Long-Term Consequences
Private equity firms are not only buying stakes of NFL teams due to the long-term success the franchises have had, but mainly due to the short-term profits they will likely turn. Now although the NFL has put strict restrictions on private equity firms having a controlling interest of its franchises, the NFL and its teams may face immense pressure from the private equity firms. This pressure from the private equity firms may consist of prioritizing revenue while hindering the fan experience. In England’s Premier League, this has already begun to occur. As private equity firms have started to take ownership of many European soccer teams, the fan experience has taken a turn for the worse.[7] This includes higher ticket prices, a greater emphasis on national and global commercialization, and increasingly debt-heavy ownership structures.[8] Because the private equity firms are focused on short-term successes, there are numerous long-term consequences that can affect each franchise such as the global monetization of its franchises and the potentially weakened local fanbase caused by this.[9]
Conclusion
Although it seems inevitable that private equity firms will eventually become involved in a majority of NFL franchises, many critics are concerned about the long-term effects this investment may have on fanbases and local communities. They argue that the league’s focus could gradually shift away from preserving the traditional fan experience and toward prioritizing profit maximization and commercial growth. Many NFL owners do not oppose private equity involvement so long as they retain operational control of their franchises while also benefiting from the increased liquidity and financial flexibility that institutional investment provides. Likewise, many fans may not object to private equity ownership as long as teams continue prioritizing their local communities and preserving the traditional fan experience over purely profit-driven objectives.
About the Author
Noah is a third-year regular division law student at Widener University Delaware Law School. He serves as the Web Editor for Volume 51 of the Delaware Journal of Corporate Law. Before law school, Noah earned his bachelor’s degree in finance from Indiana University’s Kelley School of Business in Bloomington, Indiana. During his time in law school, Noah interned for the Honorable Judge Craig Levin in the Pennsylvania Court of Common Pleas in Philadelphia and also worked as a law clerk at a Philadelphia firm. After Noah graduates and passes the bar, Noah will be working as an associate attorney at Margolis Edelstein in Philadelphia. In his free time, Noah enjoys biking on the Atlantic City Boardwalk, watching Philadelphia sports, and spending time with friends and family.
[1] Michael Rothstein, NFL Owners Approve Private Equity Investment, ESPN (Aug. 27, 2024, 10:49 AM), https://www.espn.com/nfl/story/_/id/41013650/nfl-owners-approve-private-equity-investment.
[2] Id.
[3] NFL Team Values, Fanancial Sports, https://fanancialsports.com/nfl-team-values (last visited Apr. 25, 2026).
[4] Id.
[5] Judy Battista, NFL Owners Vote to Allow Private Equity Funds to Buy Stakes in Teams, NFL (Aug. 27, 2024, 4:50 PM), https://www.nfl.com/news/nfl-owners-vote-to-allow-private-equity-funds-to-buy-stakes-in-teams.
[6] Michael Rothstein, How the NFL Treats Succession Plans When a Team Owner Dies, ESPN (May 22, 2025, 5:35 PM), https://www.espn.com/nfl/story/_/id/45272699/nfl-owners-irsay-colts.
[7] Aaron Timms, Cold, Ravenous and Predatory, Private Equity Is Slouching Towards the NFL, The Guardian (Oct. 2, 2024, 5:00 PM), https://www.theguardian.com/sport/2024/oct/02/cold-ravenous-and-predatory-private-equity-is-slouching-towards-the-nfl.
[8] Id.
[9] Id.
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