While the Philadelphia Eagles’ decisive 40-22 win over the Kansas City Chiefs in Super Bowl LIX is still grabbing headlines, the biggest winner of this year’s Big Game wasn’t a team — it was the National Football League (NFL) itself. Thanks to the recent adoption of a game-changing private equity rule, the NFL is set to cash in long after the confetti settles.

The NFL’s New Private Equity Playbook

Last August, the NFL approved new ownership rules that allow private equity funds (“Funds”) to purchase minority stakes in NFL franchises. The new Private Equity Policy (“Policy”), formally titled 2024 Resolution JC-7, was designed to expand team ownership to pooled investment groups. Under the new Policy, Funds:

  • May purchase up to 10% of an NFL team at a minimum equity stake of 3%;
  • Must hold the investments for at least six years as a passive owner (i.e., no voting rights or significant decision-making power); and
  • Must have at least $2 billion in committed capital but cannot invest more than 20% of fund capital into one franchise.

In connection with the Policy, the NFL selected a group of firms to kick off the private equity investments, including Arctos Partners, Ares Management, Sixth Street, and a consortium led by Curtis Martin comprised of Blackstone, Carlyle, CVC, Dynasty Equity, and Ludis.

This historic policy shift positions the NFL alongside other major U.S. sports leagues, such as the NBA, MLB, NHL, MLS, and NWSL, which have allowed private equity investments for years.

Why Private Equity is Betting Big on the NFL

The NFL is America’s most valuable sports league, with an average franchise valuation of $5.93 billion. Unlike other leagues, every NFL team is profitable and yields higher multiples when sold. Together with its record-breaking $111 billion media rights deal, the NFL’s profitability is expected to grow over the next decade.

In particular, private equity firms are drawn to sports as an asset class due to:

  • Recession-resistant fan loyalty – Despite on-field performance and economic uncertainty, NFL franchises maintain value
  • Steady growth in team valuation – Many experts believe that NFL franchises have consistently outperformed the S&P 500 for the last 20 years
  • Lucrative media rights – $111 billion and a Christmas Day doubleheader? Enough said.

Looking Downfield to the Future of Private Equity Plays

Despite suffering the second-largest blowout in Big Game history, Kansas City Chiefs’ owner and NFL Finance Committee Chair, Clark Hunt is open to leveraging private equity investments in the future, acknowledging that “having more options from a liquidity standpoint is beneficial to everybody, including the Kansas City Chiefs.” Hunt’s willingness to explore such investments comes on the heels of the NFL’s first two private equity investments in December 2024 with Arctos Partners and Ares Management joining the ownership groups of the Buffalo Bills and Miami Dolphins, respectively.