The National Football League is now accepting funding from private equity companies. The course of was a really very long time throughout the making, after peer leagues like Major League Baseball and the National Basketball Association began doing so starting in 2019.
“This is something that we’ve been considering as a league for five years, when some institutions started investing in other sports leagues,” acknowledged Kansas City Chiefs proprietor Clark Hunt. “We just felt it was the right time for the NFL.”
In newest years valuations {{of professional}} soccer teams have skyrocketed, boosted partly by hovering media rights packages. The widespread NFL franchise is valued at $6.5 billion, in line with ‘s Official NFL Valuations, whereas the NBA’s widespread franchise is worth about $4.4 billion, in line with Forbes.
“A lot of teams in the NBA have been at a cash-loss position every year, some in a nine-figure cash loss. But the valuations have increased much more than that,” acknowledged Sportscorp co-founder Marc Ganis. “It has been a way to create liquidity without having to borrow money and without having to do capital calls.”
Watch the video above to be taught further about how the NFL’s new pointers for private equity will work and the best way they could affect the league shifting forward.
