At Tuesday’s meeting, NFL owners approved four new club minority shareholders , including the most decorated QB of all time. The same day, Sportico reported three celebrity athlete investors are in line for shares of the Bills. Meanwhile, the Dolphins are preparing to sell 10% to Ares Management, which would be the first of presumably several institutions to take NFL positions. We know of several other LP sales efforts afoot.
By historical standards, this is all highly unusual. Teams with diverse syndicate ownership have always been the exception, with most held closely by single individuals or their families. Newsworthy LPs -- either through size of their share or their personal prominence -- have always been rare. Not anymore. Why?
- Diversity. In March 2022, owners officially declared that going forward, potential ownership groups with racial minorities would be seen more favorably than those without. This alone incentivizes more LPs. The Broncos and Commanders’ new buyers both complied.
- Slower future growth. With so much NFL value growth in the rear-view mirror, some strategists conclude the next era of growth won’t be as robust in terms of percentage return. If that’s true, it makes less sense to own 100% of a team. That’s got people thinking about taking cash off the table.
- Tardiness. The NFL is simply late to the sports industry-wide trend of celebrity shareholders as marketing vehicle and realizes how valuable it can be.
