The NFL has opened the floodgates for private-equity funds to acquire minority interests in its franchise. One firm, which currently has a piece of two teams, is poised to add a third.
Via Jonathan Jones of CBS Sports, owners are expected to vote today on the proposed sale of three percent of the Cleveland Browns to Arctos.
Arctos is one of the firms with advance approval to invest in teams. Already, Arctos owns a piece of the Chargers (eight percent) and Bills (10 percent).
It’s an odd dynamic, to say the least, for the same group to have an ownership stake in multiple competing businesses. Ultimately, however, they only compete on the field. When it comes to the relentless pursuit of cash, they’re all in it together.
The valuation isn’t currently known. To use a round number, a three-percent chunk at a $10 billion valuation would result in a $300 million payment.
The sale provides the Browns with a nice infusion of cash at a time when they’re getting ready to build a new stadium. The private contribution for the facility exceeds $1.755 billion.
