Seven-time Super Bowl champion Tom Brady wants to become part owner of a National Football League franchise. Eli Manning, who led the underdog New York Giants to two Super Bowl victories over Brady and the New England Patriots, also wants to buy the team.
Rival retired quarterbacks are emerging as likely bidders just as the NFL overhauls its strict ownership rules.
For years, the NFL has been brutalizing private equity firms that wanted a seat at the table. He also banned state-owned corporations and sovereign wealth funds. And this required that the team’s primary owner own at least 30% of the franchise.
When NFL Commissioner Roger Goodell asked the committee to vote on changing those rules last month, a “Who’s Who” of NFL owners gathered in Nashville, Tennessee: Clark Hunt of the Kansas City Chiefs, Robert Kraft of the Patriots, Arthur Blank of the Atlanta Falcons, Jimmy Haslam of the Cleveland Browns and Greg Penner of the Denver Broncos.
But the voting took a long time. Goodell subsequently cryptically confirmed that the group expected “something” by the end of 2024.
Details are yet to be finalized. How much stock can a private equity firm buy? How many teams can one firm invest in? How many firms could invest in one team? The answers are not yet known.
Several firms were reportedly involved in the discussions: Arctos Partners, Ares Management, Avenue Capital Group, Carlyle Group and CVC Capital Partners.
The private equity industry, including Manning’s Brand Velocity Group, has about $4 trillion in so-called dry powder at its disposal. Supporters of the rule change argue that the new money could support major projects such as new stadiums.
Owners also believe that selling minority stakes to private equity firms (common in other sports) could mean a quicker exit and lower taxes. However, the NFL has kept a number of wealthy private investors on the sidelines in recent years, including Josh Harris, who offered to buy the Washington Commanders for $6 billion; Clearlake Capital Group, which lost the Broncos auction to Walmart heir Rob Walton for $4.65 billion; and Ben Navarro, who lost to the Carolina Panthers to billionaire David Tepper’s $2.3 billion bid.
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