Why the NFL Isn’t a Sure Bet for Private-Equity Firms

Irwin Kishner, co-chair of Herrick's Sports Law Group and co-chair of Herrick's Corporate Department, spoke with Front Office Sports about private equity investment in the NFL.

As noted in the article, two private equity firms that were part of a consortium that represented one of four league-approved buyers under a policy that allows specified PE investors to buy up to 10% of an individual team’s equity have stepped away from NFL investment. The article further discusses the appeal of investing including that it is the most popular professional sport in the United States and the ballooning of team valuations. 

“I did find it somewhat unusual that CVC and Blackstone decided not to pursue the route, even though they went through all the brain damage of getting approved,” said Irwin. 

According to the article, a source indicates that the firms chose not to move forward because of an NFL policy that requires what’s known as “joint and several unlimited indemnification” from investors, including minority stakeholders. Whether it is an indemnification issue, or something else, Irwin stated that he was not, "completely shocked to see the news that the two firms dropped out."

“One could certainly come up with a reason why not to invest,” Kishner tells FOS. “Those are usually easy to find if you want to spend the time, effort, and energy to look at things.”

Read the full article in Front Office Sports here. Access may require a subscription.