Haynes and Boone, LLP Counsel Errol Brown was quoted in a Daily Mail article after NFL owners voted to approve limited stakes in NFL teams for private equity firms in a move that could permanently alter the league's financial landscape.
"We should expect teams' valuations to soar even further," Brown told Daily Mail. "Fan engagement continues to increase and every year the majority of the top 50 primetime telecasts are NFL games."
As Brown explained to Daily Mail, private investments will open up opportunities for a wider range of investors as opposed to the narrow few who can afford to buy entire teams.
And that, in turn, should drive those valuations even higher.
"The reality is there exists a small group of individuals who could afford the price tag of these teams, and that limits the demand pool, even if interest is high," Brown told Daily Mail. "That's why we're seeing private equity enter with literally trillions of dollars in dry powder competing for lucrative and accretive assets in tight supply, and it's hard to think of a scenario that would hurt valuations going forward."
To read the full article from Daily Mail, click here.
