Private equity is finally coming for the NFL: Here’s who’s making a play for a piece of the action

Irwin Kishner, co-chair of Herrick's Sports Law Group, was quoted in an article in Fortune that discusses a potential change to the NFL rules that would allow institutional investors to buy stakes in teams, and the timeline for any deals involving team sales. 

The article reports that NFL team owners and executives are expected to meet to discuss a framework that would allow private equity firms to invest, and potentially vote on allowing institutional investors to buy into teams. The NFL is reportedly considering a plan to allow private equity firms to own up to 30% of a single franchise, with no single firm owning a stake larger than 10%. 

“The NFL is taking a very considered path toward [private equity] investment which ultimately will be approved by the owners committee,” said Irwin. The article further reports that "Kishner, who has advised on M&A deals involving teams in the NFL, MLS, NBA, and MLB, expects the proposal to pass this year."

The article also notes that several private equity firms have met with the NFL, with varied levels of experience in investing in sport teams. While private equity investment could open up a world of buyers for these teams, there is a risk of disrupting current deals. The article reports that "[s]everal transactions involving the sale of minority NFL team stakes are in process right now, and the publicity is messing with timelines and expectations."

While a policy allowing private equity to invest may be imminent, "private equity deals are not."

Irwin "also believes it will likely take months before private equity begins investing." There are "[n]o guarantees on timing."

Read the full article in Fortune here. Access may require a subscription.