The NFL opens its doors to private capital, redefining franchise ownership.

The recent decision by the NFL to open its doors to private capital marks a milestone in the history of American football, following the footsteps of the NBA in the search for new forms of financing and economic growth. The league's owners voted in favor of allowing the sale of stakes of up to 10% to institutional investors, a move that could radically change the landscape of team ownership and its operations. With the approval of these new ownership rules, the Miami Dolphins and the Buffalo Bills will become the first NFL teams to sell shares to investment firms, specifically Ares Management and Arctos Partners, respectively. This move not only reflects the growing influence of private capital in professional sports but also underscores the owners' intention to maximize the value of their franchises, which were already on an upward trajectory. The incorporation of institutional investors is seen as a strategy to finance ambitious infrastructure projects, such as stadium renovations that, in many cases, have become outdated in light of current entertainment demands. The capital injection that these new partners will bring to the league could facilitate not only improvements in facilities but also enhancements in the fan experience, a crucial aspect for the sustained growth of the NFL. Additionally, the league has begun to allow individual investors to also acquire stakes. A notable example is Joe Tsai, co-founder of Alibaba and owner of the Brooklyn Nets, who will buy a 3% stake in the Dolphins. Such transactions not only diversify the ownership base but also attract influential personalities from other sectors, which could result in greater media and commercial interest in the league. The interest in acquiring stakes in NFL franchises is not limited to the Dolphins and the Bills. The Philadelphia Eagles have decided to sell an 8% share of their team to a diverse group of investors, highlighting the growing trend among owners to seek external capital to strengthen their financial positions. This transaction elevates the team's valuation to a staggering $8.3 billion, placing it among the most valuable in sports. One of the reasons behind this openness to private capital is the tax burden faced by many NFL owners. Most of them are of advanced age and wish to pass their teams to the next generation. However, this process can be burdened by high estate taxes. By selling a portion of their franchises, owners not only gain liquidity but also reduce potential tax burdens, a maneuver that could save some hundreds of millions of dollars. The possibility of each owner allowing the entry of private capital could trigger a boom in transactions within the league, as the NFL has authorized other firms to explore these opportunities. Unlike owners who have restrictions on investing in only one team, private equity investors have the flexibility to acquire stakes in multiple franchises, up to six at a time, which could lead to greater competitiveness and dynamism in the market. The economic fundamentals of the NFL remain robust, with an average franchise valuation surpassing that of other professional sports in the United States. This is complemented by a media rights agreement worth an astounding $100 billion, ensuring the league's financial viability for a considerable period. This favorable context makes the NFL an attractive destination for both institutional and individual investors. As a result of these new regulations, the NFL is expected to experience significant growth, not only in terms of franchise value but also in the teams' ability to invest in infrastructure and talent. The arrival of private capital could transform the league's dynamics, making the NFL not only a leader in American sports but also a model for other leagues worldwide. At a time when the intersection between sports and capital is more present than ever, the NFL has made a bold decision that could define its future. With the opening to new ownership models and the entry of investors with significant resources, American football is poised for a new era of growth and evolution. The question now is how these changes will influence the fan experience, the league's competitiveness, and the legacy of its teams.