Haynes and Boone, LLP Partner Dan Malone and Counsel Errol Brown were quoted in a PE Hub article on the new intersection between private equity and professional football, as firms are hoping the National Football League will soon allow them to take minority ownership stakes in NFL franchises.
“Everybody wants to be a part of [the NFL],” said Malone. “There’s a ton of dry powder. We all know that people are looking for new investment opportunities and ways to take limited partner funds and turn that into revenue sources.”
Scarcity plays a role. “There are only so many limited partners that are going to be able to say that they are a minority partner within one of the few NFL teams in the world,” said Brown. “It’s almost like a Picasso. It’s so scarce.”
Traditional PE deals usually involve some form of debt leverage, said Malone. But in an NFL franchise investment, there would be a need for more equity. That means a potential investor would need to provide significant capital.
To read the full article in PE Hub, click here.
