The NFL team owners have opened themselves up to investment from private equity funds. This measure is intended to help the franchises achieve even more financial stability

Tuesday saw a significant change to the NFL’s ownership rules. The team owners voted in favor of allowing private equity funds to acquire shares in the franchises.

These investments by private equity funds, which are to remain on a small scale for the time being, will give team owners access to hundreds of millions of US dollars in cash.

Up to ten percent of the team shares can be sold to a private equity fund. The sale of shares to several funds is also permitted, whereby each sale must include at least three percent of the team shares.

Conversely, a fund can also acquire the shares of several NFL franchises; up to six teams are permitted.

In addition, private equity funds are obliged to hold potential shares in teams for at least six years before a sale is possible.

“We chose this private equity very consciously. I think it’s an access to capital that has been of interest for a long time. Other leagues have done it, we’re doing it with a ten percent cap,” said NFL commissioner Roger Goodell.

The list of approved funds includes Arctos Partners, LP, Ares Management Corporation, Sixth Street and a consortium that includes Blackstone, Carlyle, CVC, Dynasty Equity and Ludis. However, direct investment by state or pension funds is not permitted.

However, fans need not fear that their general managers or presidents will lose control of the franchises. This opening up to investments by private equity funds is only about making it easier for the teams to access money, thus giving them greater financial stability.

However, this does not mean that private equity fund managers will be involved in draft decisions in the future. The investment of a private equity fund in an NFL team is not associated with voting rights.