NFL’s Chosen Private Equity Investors Already Have Big Sports Ties

Eight U.S.-based private equity firms are set to benefit from the ever-growing valuation of NFL franchises after being exclusively approved to buy minority stakes in the league’s 32 clubs.

Most general sports fans may not recognize the names of the multibillion-dollar funds, but all except one have already made investments in other professional franchises, leagues, and other sports properties. The NFL has given the green light to Arctos Partners, Ares Management, and Sixth Street Partners, as well as a five-firm consortium of Blackstone Partners, Carlyle Group, CVC Capital Partners, Dynasty Equity, and Ludis, a firm founded by Pro Football Hall of Famer Curtis Martin. 

Blackstone and Ludis are the only firms without a prior known sports franchise investment.

Arctos

Arctos, founded as a sports-specific firm in 2019, is known to have more than 20 investments in professional entities. The most notable as it relates to the NFL is its investment in 76ers and Devils parent company Harris Blitzer Sports & Entertainment, founded by Commanders owner Josh Harris (above) and his business partner David Blitzer, who holds a minority stake in Washington.

Here’s a full list of Arctos sports investments:

• NBA: 76ers, Jazz, Kings, Warriors
• NHL: Devils, Lightning, Penguins, Utah HC, Wild
• MLB: Astros, Cubs, Dodgers, Giants, Padres, Red Sox
• Soccer: Liverpool, Paris Saint-Germain, Portland Timbers 
• Motor sports: Aston Martin Formula One team, Joe Gibbs Racing

Arctos is also invested in the Premier Lacrosse League. Its stakes in the Red Sox, Liverpool, and Penguins come by way of an investment in those teams’ shared parent company, Fenway Sports Group. The Jazz and Utah HC are both owned by Ryan Smith.

Ares

Ares Management was founded in 1997, but in 2022 raised $3.7 billion for a fund focused on sports, media, and entertainment finance. Its sports investments are mostly in soccer, holding minority ownership stakes in Atlético de Madrid, Chelsea, Inter Miami, and Eagle Football Holdings—the parent company of Crystal Palace and Olympique Lyonnais.

Outside of soccer, Ares has stakes in the Padres and McLaren Racing.

Sixth Street

Sixth Street’s biggest NFL tie comes by way of the majority stake it acquired in Legends in 2021. The sports hospitality agency was founded in 2008 by Cowboys owner Jerry Jones and the Steinbrenner family who owns the New York Yankees.

Additionally, Sixth Street is the lead investor in NWSL club Bay FC, and it has minority stakes in Barcelona, Real Madrid, and the San Antonio Spurs.

Best of the Rest

Three of the five firms partnering on a consortium that will invest in NFL franchises already have sports franchise investments.

Carlyle has a stake in the Seattle Reign, and the firm’s founder, David Rubenstein, bought the Orioles earlier this year. Carlyle was also reported to be in talks with Alex Rodriguez and Marc Lore to help fund their majority acquisition of the Timberwolves, which remains unsettled. 

CVC invested $150 million into the WTA last year, and it has been linked to a potential investment in the Big 12 Conference. The firm also has stakes in Indian Premier League franchise Gujarat Titans, as well as Spain’s LaLiga, France’s Ligue de Football Professionnel, and Premiership Rugby in the U.K.

Dynasty Equity was just founded in 2022, and it has only two investments, both in sports: Liverpool and TMRW Sports, the company founded by Tiger Woods and Rory McIlroy that is launching the TGL golf league next year.