The owners of the National Football League (NFL) have allowed some private equity firms to buy up to a 10% stake in a team, the NFL said Wednesday.
Firms initially approved by the NFL include Ares Management , Arctos Partners and Sixth Street in addition to a consortium comprising Blackstone, Carlyle, CVC and Dynasty Equity.
The NFL's 32 owners were to vote at a special league meeting in Eagan, Minnesota, according to CNBC, and the private equity firms intend to commit $12 billion, to be raised inclusive of leverage.
The NFL is the only major North American sports league that prohibits private equity ownership in a franchise. The NBA, NHL, Major League Baseball and Major League Soccer allow their teams to sell a maximum of 30% of equity to a fund.
The NFL formed a committee last year to explore changes in its ownership rules. Commissioner Roger Goodell said in March the league was "very close to sort of outlining an approach," with "a lot of work to do to take that approach into reality."
The Washington Commanders was the most recent NFL team to be sold, in a record-breaking $6.05-billion deal.
With team valuations on the rise, private equity could turn out to be an alternative avenue for future league franchise sales.