American football’s NFL owners have approved minority stake sales in the New York Giants and San Francisco 49ers, while the New England Patriots reportedly also had their stake sale confirmed at yesterday’s league meeting.
Pete Briger Jr., the executive chair of investment firm Fortress Investment Group, and the Briger family have picked up a 3.2% stake in the 49ers, valuing the team at about $8.6 billion.
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The league also approved the purchase of a 10% stake in the Giants by Julia Koch and her family in a deal that values the team at $10.3 billion – the highest valuation placed on an NFL team for a sale.
The Giants are currently owned by the Mara and Tisch families, with John Mara serving as president and chief executive, while Steve Tish remains executive vice president and chairman of the board.
In a statement, Mara said: “It was clear during our discussions that Julia and her family understood the importance of this franchise to the Mara and Tisch families and the relationship we have with our fans and community. Our discussions were productive, and we are pleased to have them as a part of the New York Giants.”
The deal adds to the sports portfolio of Koch, the widow of billionaire and former Koch Industries president David Koch, who secured a 15% stake in BSE Global, the parent company of basketball’s Brooklyn Nets and New York Liberty, and the Barclays Center arena, in 2014.
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By GlobalDataThe NFL owners also reportedly approved the sale of an 8% stake in the Patriots to billionaire investor Dean Metropoulos and private equity firm Six Street Partners, in a deal that values the team at $9 billion.
Citing a league source, the New York Times said 5% of the stake was purchased by Metropoulos, while the remaining 3% was bought by Sixth Street Partners.
Metropoulos is perhaps best known as an investor-flipper that has owned numerous prominent US consumer businesses over the years, including Pabst Brewing Company (sold in 2014 for $700 million) and Hostess Brands.
In addition to its new minority stake in the Patriots, Sixth Street holds interests in the NBA’s Boston Celtics and San Antonio Spurs, as well as Major League Baseball’s San Francisco Giants. It is also the majority owner of NWSL’s Bay FC and has commercial partnerships with Spanish soccer clubs Real Madrid and Barcelona.
All three minority sales had to be approved by at least three-quarters of the NFL’s owners.
The stake sales come after NFL franchise owners voted to allow the entry of private equity into NFL ownership last August, albeit a small list of firms. These companies, of which Sixth Street is included, are only allowed to buy stakes of up to 10% in NFL sides and are prohibited from intervening in club operations.
Other private equity groups approved to invest in NFL teams include Ares Management, Arctos Partners, and a consortium of five funds — Blackstone, Carlyle, CVC, Dynasty Equity, and Ludis.
Alongside the 10% cap, other regulations include each purchase being held for a minimum of six years, each fund being able to invest in a maximum of six teams each, and no more than 20% of a fund being allocated to any one NFL franchise.
Private equity was voted in to allow the league’s owners to benefit from minor stake sales as the valuations of NFL franchises skyrocket, reducing opportunities for these owners to sell up entirely.
In May, the NFL owners approved the sale of minority stakes in the 49ers, Los Angeles Chargers, and Cleveland Browns.
The high team values, meanwhile, come with the expectation that the NFL will secure much more lucrative media rights deals for the next cycle, with NFL commissioner Roger Goodell last month suggesting the league could begin renegotiating its 11-year, $111 billion agreements as soon as next year.
The league’s current rights deals are reportedly significantly undervalued, given its dominant television ratings and the new deals secured by basketball’s NBA and ice hockey’s NHL.
