NFL owners approve rule change allowing private equity investments, with reportedly $12 billion already committed

NFL owners have officially approved another way to receive money.

The league’s owners voted in favor of a rule change that allows private equity firms to buy up to a 10% stake in a team, according to Sportico, freeing up billions in committed and potential investment dollars. The NFL is a latecomer to the change, as the NBA, MLB, NHL, MLS and NWSL had all already made the switch.

Reportedly, 31 of the 32 owners voted in favor of the change, with Mike Brown of the Cincinnati Bengals being the one to vote against it.

The details of the arrangement include a minimum stake of 3% for the private equity firm, funds allowed to invest in up to six teams per team and a minimum holding period of six years. All funds must have $2 billion in total capital to buy in.

The league is making the change amid a continued explosion in franchise values, which has made it harder for owners to profit from franchises that are now worth billions of dollars each. Previous rules required that an ownership group have no more than 25 people, but majority owners now have more flexibility to find minority partners willing to inject cash in exchange for a share of the profits.

And it looks like NFL teams won’t be waiting long to do just that. According to CNBC, a number of firms, including Ares Management, Sixth Street Partners and Arctos Partners, have committed to raising $12 billion in capital to invest in NFL teams.