NFL Approves Ownership Stakes: Arctos, Woodson Join Ranks

The ranks of minority equity holders in the NFL have again expanded. 

League owners approved four new team stake sales Tuesday, including Arctos Partners acquiring an 8% stake of the Chargers, which is the NFL’s third private equity deal since approving the entry of those investors last summer. Arctos also holds a 10% stake in the Bills. 

Also gaining approval from team owners, convening in Minnesota for their spring meeting, were:

• A sale of a roughly 6% stake of the 49ers to the families of Vinod Khosla, William Griffith, and Byron Deeter. The deal carried a valuation of $8.6 billion for the 49ers, the largest of any North American pro sports franchise. 

• A sale of 0.1% of the Browns to Pro Football Hall of Famer Charles Woodson. The former star defensive back will need to remove his name and likeness from alcohol brands he owns as part of the terms of joining an NFL team ownership group. A member of Fox NFL Kickoff, Woodson will also need to comply with similar broadcasting restrictions as Tom Brady, such as not participating in pregame production meetings. 
• A sale of 1.1% of the Dolphins by existing limited partner Joe Tsai, also the Nets owner, to a group of businessmen. Tsai, who became a limited partner of the Dolphins less than six months ago, will still own nearly 2% of the team.

The series of deals, while each carrying its own specific motivations, arrives as NFL team values continue to soar to unprecedented levels. That, in turn, has provided investors with new opportunities to gain liquidity from the valuable assets. 

“Arctos’ track record in major professional sports speaks for itself, and we are grateful for their alignment moving forward during this time for tremendous growth for our organization,” Chargers owner Dean Spanos said in a statement. 

Meanwhile, Blackstone and CVC have departed a consortium that was among the four league-approved private equity entities permitted to do team deals. That group will still include original members Carlyle Group, Dynasty Equity, and Ludis, founded and led by Pro Football Hall of Famer Curtis Martin. Separately, Arctos, Ares Management, and Sixth Street Group are also NFL-approved private equity investors.

Ares also has a stake in the Dolphins, the other private equity deal in the league along with the ones for the Chargers and Bills.

International Surge

NFL commissioner Roger Goodell, meanwhile, reiterated at a CNBC event that a 16-game slate of international games is arriving “in the very near future,” and perhaps within five years. That comment is entirely consistent with remarks he made last fall, and is a fundamental part of the NFL’s global vision that includes seven international games this season.

“International is an open market for us,” Goodell said. “We are excited about our potential.”

Along those lines, all 32 teams are now part of the league’s Global Markets Program after the Bills and Bengals gained rights to Canada and the Titans acquired rights to Ireland. Overall, the program spans 21 international markets.