Who Will Own the NFL in the Years Ahead? (hockey, pro, leagues)
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Who Will Own the NFL in the Years Ahead is the subject of my morning email from the NY Times Dealbook, a business newsletter.
The issue is whether or not to let passive investors buy part of all of NFL teams. Passive investors could be Wall Street hedge funds, private equity, foreign nation sovereign wealth funds, pension funds, fat cats, etc.
Some excerpts:
Quote:
The biggest upcoming football event for many of the N.F.L. owners and business executives who will populate luxury boxes at the Super Bowl this weekend is not, perhaps surprisingly, the game. It actually won’t take place until six weeks later, in Orlando, Fla., when football executives gather for the National Football League’s annual meeting — an event that has particular significance this year.
At the meeting, the league is expected to address a long-simmering question: whether to allow passive investment from private equity firms, which work with money sourced everywhere from sovereign wealth funds to pension funds to wealthy individuals.
Major League Baseball, the National Basketball Association and the National Hockey League have already relaxed their ownership rules. But the N.F.L. both prohibits private equity money and has some of the strictest rules for investing, requiring general partners to buy at least a 30 percent stake in the team and limiting the use of debt to $1.2 billion. Allowing institutional investors to own teams could vault already high-flying valuations higher and change the culture of team ownership.
Soon after the N.B.A. allowed pension and sovereign funds to invest in its leagues, the Qatar Investment Authority bought a 5 percent stake in three Washington, D.C., teams. Saudi Arabia’s wealth fund, which struck a splashy (though far from certain) deal with the PGA Tour last year, has also been eyeing tennis.
I don't want ANY foreign money buying up NFL teams, whether in part or in full. I don't like what the Saudi sovereign wealth fund is doing to pro golf. I don't like dark money, be it in politics or anything else. There's an old saying along the lines that "bad money drives out the good" and IMO this is bad money.
The NFL last year set up a committee to assess whether to allow institutional capital to invest directly into franchises, and is expected to put forward recommendations before the league’s annual meeting in March.
In July, the Washington Commanders were bought by Josh Harris for $6 billion, the largest ever sale of an NFL team. The co-founder of Apollo Global Management, with a net worth of more than $8 billion, Harris bought the team with a large consortium of investors with Wall Street connections.
Bloomberg reported last year that a group of National Football League owners pushed to allow private equity firms and institutional investors to buy stakes in clubs.
So, maybe it's a done deal since some NFL owners think it's worth doing, maybe all that's left is for the NFL to write the rules for it, but I still don't like it.
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Last edited by Mike from back east; 02-10-2024 at 11:20 AM..
In theory, it's helpful for our trade gap if foreign money buys our real estate, teams, etc. These are things that remain in the US regardless. It's purely money-in.
Ok, will they remain in the US regardless, with maybe a Canadian team someday, and limited games elsewhere? The risk would be if some cities lose teams. It's hard to imagine adding value to a team by cutting spending....?
We didn't lose when Japanese money bought the Mariners. Actually the Mariners gained another fan base, even before the Ichiro hysteria.
I wouldnt be surprised to see more foreigners buying not just NFL but all the other american pro sport franchises as well. If it can happen to English premier league teams (ironically, Americans are the ones buying the soccer clubs) then I dont see why it wouldnt happen here.
In that case they can do away with team doctors and when hurt just Shake It Off.
There's too much money floating around the world, too much money looking for investible opportunities which bids up the price of housing, stock markets, corporate assets, etc. But at 76 maybe I shouldn't care so much.
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I'm for the NFL sticking to their current rules and not changing. I do realize that many not happen.
I think some might have to do with how long Roger Goodell stays commissioner and/or who replaces him. But I think he is all about growing the business, so probably the highest paying bidder?
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