Private equity owners are making a splash in the world of NFL team ownership, with billionaires like Josh Harris leading the way. Harris, the new controlling owner of the Washington Commanders, paid a record $6 billion for the team and assembled a 23-person ownership group that includes well-known names like Magic Johnson and Eric Schmidt. Despite the high price tag, Harris is confident in his investment and has already made changes to the team in hopes of turning their fortunes around.
Harris, a private equity titan with a portfolio that includes the Philadelphia 76ers and the New Jersey Devils, is part of a new wave of Wall Street investors entering the NFL ownership club. The league recently opened its doors to private equity firms, allowing them to buy up to 10% of each team. With private equity firms like Blackstone, Carlyle, and Arctos having billions of dollars in dry powder, the landscape of NFL team ownership is changing, with values continuing to rise.
For Harris, owning an NFL team is a dream come true. Growing up near Washington, D.C., he experienced the passion of fans firsthand and is determined to deliver a winning team to them. With NFL teams reaping huge profits from media rights deals, owning a team is seen as a safe investment, even in a turbulent economic climate. The NFL’s unique revenue-sharing model ensures that every team makes money, regardless of their on-field performance.
Harris’ success in turning around the Philadelphia 76ers serves as a blueprint for his approach with the Commanders. By focusing on building a competitive team and investing in the fan experience, he believes that he can replicate his success in the NBA in the NFL. With the NFL’s media rights deals set to increase in the coming years, the league’s financial outlook remains strong, further enticing investors like Harris to enter the fray.
As more NFL owners approach retirement age, the league is expected to see a major transfer of ownership in the coming years. Should owners like Robert Kraft of the New England Patriots decide to sell, private equity firms are likely to step in as buyers. This development could democratize NFL team ownership, allowing more investors, including everyday sports fans, to have a stake in the league.
Overall, the entrance of private equity firms into the world of NFL team ownership is changing the game. With billions of dollars in investment capital at their disposal, these firms are driving up team values and reshaping the financial landscape of the league. While the traditional model of lone billionaire owners may be shifting, the prospects for the future of NFL team ownership are looking bright for investors and fans alike.
