The New England Patriots have made headlines as the latest NFL team to negotiate the sale of a minority stake to external investors, underscoring a growing trend among franchises to engage private investment. Reports from Sportico and the Sports Business Journal indicate that the Patriots have agreed to offload an eight percent stake in a deal valuing the team at over $9 billion. This move follows in the footsteps of the New York Giants, who recently completed a comparable transaction pushing their overall valuation to a league-high of $10 billion.
Robert Kraft, the current owner of the Patriots, originally acquired the team in 1994 for a then-record $172 million. Considering the new valuation, the eight percent stake now under negotiation would be priced at approximately $720 million, a testament to the massive financial growth of sports franchises over the past decades.
Of the eight percent ownership being sold, five percent is slated to be acquired by billionaire investor Dean Metropoulos, while the remaining three percent will go to the private equity firm Sixth Street Partners. Notably, Sixth Street was among the firms sanctioned to invest in NFL franchises following a decision by NFL ownership last year to permit private equity capital investments into teams.
The deal is pending approval from NFL owners, with a vote likely to occur during the upcoming league meetings set for October 21 and 22. This sale not only emphasizes the escalating value of major league teams but also highlights the increasing involvement of private equity in the sports industry. Such investments offer a lucrative opportunity for expanding the economic footprint of professional sports franchises, showcasing their robust marketability and global appeal.