The NFL has joined the other major league sports in allowing for private equity firms to purchase ownership of its teams—at least partially. According to ESPN, this week's vote granted private equity firms to purchase up to 10% passive ownership in NFL teams.

Furthermore: "Funds are capped at investing in a maximum of six teams, and the minimum investment for institutional wealth in any franchise is 3%. If a fund buys into a team, it must hold onto the investment for a minimum of six years. Funds must have a minimum of $2 billion of committed capital to invest and a maximum of 20% of a fund's money can be invested into one team."

As CNBC reports, pending approval, Arctos may soon be the first firm to own equity in a team in each of the five major sports leagues.

“We are honored to be among the first private investment firms being considered by the National Football League as potential partners for their clubs and owners. …[We] look forward to contributing to the League’s continued success," a statement by the firm reads.

Greg Penner, owner of the Denver Broncos, told the Associated Press, that “the support today in the room was very strong for this decision. One thing that was really important was giving owners a different option for capital sources but at the same time maintaining how we operate.”

Sports Law

As Law.com writes, many Big Law firms are expanding opening or expanding their sports law division. Brad Karp of Paul, Weiss, Rifkind, Wharton & Garrison noted that the issues in Major League and NCAA sports "have become far more complex, the stakes far more significant, and the players far more global and institutional." He added that “corporate interests are playing an increasingly important and visible role, with private equity and sports investment funds becoming intensely engaged participants.” All this leads to an increased need for outside counsel, and a growing source of revenue for law firms.

Verdict

It was just a matter of time before NFL gave in and allowed private equity investment—the hold up seeming to be the details. Well, it appears the details have been considered, and attorney can step in to handle this burgeoning market.