The NFL has more to gain from the Super Bowl than ticket sales and broadcast deals as it increasingly invests in the hospitality business surrounding its major events.
Last month, league owners reportedly voted to grow its stake in On Location Events from 13.5% to nearly 45%.
The Endeavor-owned company packages tickets, hotels, and other offerings for the Super Bowl, Pro Bowl, Olympic and Paralympic Games, Rose Bowl, the NCAA Final Four, and tennis’ Grand Slam events.
- On Location’s Super Bowl bundles start at $5,950. Pro Bowl packages have a minimum price of $2,020.
- The NFL licenses 9,500 Super Bowl tickets to the company.
The NFL is exercising call options that reportedly value On Location at $482 million, based on a previous deal.
The On Location Shuffle
Launched in 2004, the events company was originally a division of the NFL. In 2015, it was taken over by a private equity consortium of RedBird Capital Partners, Bruin Sports Capital, the Carlyle Group, and the NFL’s investment arm 32 Equity.
Endeavor took a majority stake in the company in 2020 at a valuation of $660 million. The company paid $366.4 million in cash and acquired debt.
With its renewed investment, the NFL is buying back into the company it spun off seven years ago.