Where this was said
Private Equity Enters the NFL (2024)
At 4:06:35 · chapter starts 3:57:51
The Washington Commanders' forced sale under Dan Snyder — triggered by sexual harassment scandals, financial improprieties, and ultimately a US congressional investigation — was the first domino. The NFL needed a buyer who could quickly produce $1.8 billion in liquid cash equity (30% of a $6 billion asset), find 20 additional limited partners to cover the rest, and fit the narrow profile of someone who both wanted to own a D.C. football team and could pass league vetting. Josh Harris of Apollo, already an NBA and NHL owner, fit the bill. But the experience exposed how fragile the ownership rules had become in a world of $6 billion valuations and billionaire-level liquidity requirements. [1] — David Rosenthal "The NFL approved only 4 private equity firms to own up to 10% of any franchise — and stipulated that when they exit, a portion of their ret…" 4:02:50 The NFL's response, in summer 2024, was characteristically genius: approve only four large private equity firms (Ares, Sixth Street, Carlyle, and one other), cap PE stakes at 10%, make them fully silent limited partners with zero operational control — and then, in the most audacious move of all, mandate that a portion of any PE firm's investment returns flows back equally to all 32 ownership groups. David Rosenthal calls it the 'ultimate pinnacle' of the NFL's collective capitalism ethos. Forbes now estimates average team values at $7.1 billion (up 60% in three years), total franchise valuation at $228 billion, and the revenue multiple at 10.7x — up from 6.4x just five years ago.
From 2019 to 2023, flag football participation grew 16% for younger age groups while tackle football participation declined 5%, making flag football the fastest-growing youth sport in America.
The NFL approved only 4 private equity firms to own up to 10% of any franchise — and stipulated that when they exit, a portion of their returns flows back to all 32 teams equally. It's the most audacious application of collective capitalism in sports history: the NFL turned PE desperation into a parity mechanism.
The NFL negotiated a rule where a portion of private equity returns from team investments gets redistributed equally among all 32 team ownership groups — an unprecedented 'carry' mechanism in sports.
Forbes estimates the average NFL team value at $7.1 billion in 2026, up from $4.5 billion when the original episode was recorded in January 2023 — a 60% increase.
