NFL May Allow Private Equity Firms to Invest in Teams
Irwin Kishner, co-chair of Herrick's Sports Law Group, was quoted in an article in The Dallas Morning News discussing the NFL's review of whether allowing private equity firms to invest in its franchises would be beneficial to the league. The article notes that the move "would allow millions of dollars to flow into the pockets of owners to free up capital and bring in a new group of individual minority owners."
"While leagues like the MLB, NBA, NHL and MLS have warmed to institutional wealth in team ownership over the past five years, the NFL is the last major U.S. sports league that hasn't given in to private equity investment." The article notes that Kisher believes that "private equity and the NFL are a seamless match."
"I think this is actually a natural evolution of [the] use of private equity dollars," said Kishner. "I think, with the right mindset, the right partners, it makes a lot of sense. It provides liquidity, an ability to finance purchases, ownership, expansions, new buildings, new arenas [and] enhances the fan experience."
Because of the money it could bring owners, Kishner noted that October could bring the beginning of private equity in the NFL. "As quickly as ownership wants it to happen, it's going to happen," he said. "I think professional sports investing at the right underwriting is a very profitable way of running a business. And I think this is going to be something that should be met with immediate welcome."
Read the full article in The Dallas Morning News here. Access may require a subscription.