The Kraft family, well-known owners of the New England Patriots, are opening up the team’s ownership to new investors for the first time. Dean Metropoulos is set to acquire a 5 percent stake, while the Sixth Street investment firm is purchasing an additional 3 percent stake. This move will be subject to approval by the other NFL owners during next month’s league meetings.
Robert Kraft acquired the Patriots in 1994 for $172 million, and despite these new investments, the Kraft family plans to retain full control over the team’s business operations. The deal, if finalized, will not affect the family’s ownership of the New England Revolution, their Major League Soccer franchise. Currently, the proposed transaction would represent the second-highest valuation for an NFL franchise, trailing only the New York Giants’ recent 10 percent ownership sale valued at over $10 billion.
The newly involved investor, Dean Metropoulos, is a noted figure in the business world with experience in revitalizing companies such as the Pabst Brewery and Hostess Brands. Concurrently, Sixth Street, a private-equity firm that gained approval last summer to invest in NFL franchises, is also partaking in the transaction. Sixth Street has interests across various sports leagues, holding investments in the Boston Celtics, Bay FC of the National Women’s Soccer League, and the San Francisco Giants of Major League Baseball.
The NFL’s decision to allow private equity into its ownership not only follows the precedent set by other major North American sports leagues but also reflects the increasing valuations of these teams. Forbes recently valued the Patriots at $9 billion, making them one of the most valuable franchises in the league.
As the league evolves, these partnerships with private-equity firms are anticipated to provide financial flexibility while helping to maintain the strong market position of NFL franchises. If approved, this deal could signal a broader trend in how sports franchises manage their financial and ownership structures.