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Dallas-based Arctos Partners LP is reportedly among the firms meeting this week with the NFL as the league considers allowing institutional investors to acquire stakes in teams.
A "handful" of private equity firms are involved in the meetings, Sportico reported, citing multiple unnamed sources "familiar with the process." Others include Carlyle, Blackstone, CVC and Dynasty Equity.
It's the latest due diligence by the only one of the country's four biggest professional sports leagues that still prohibits PE stakes in teams. Topics of discussion include the possible size of the stakes, likely 5-10%, and the potential for call options to buy back stakes from PE firms if needed, according to Sportico.
Arctos did not respond to Sportico's request for comment. The NFL and others either declined to comment or did not respond. A Dallas Business Journal request for comment from Arctos was also not immediately returned.
Arctos specializes in sports team investments. It's taken minority stakes in teams such as the Golden State Warriors and the Sacramento Kings of the NBA, and announced in April the close of a $4.1 billion fund.
The NFL has been studying the possibility of PE investments in teams for more than a year. Kansas City Chiefs owner and Dallas resident Clark Hunt is part of a committee of team owners tasked with examining the issue.
While nothing has been finalized, a lot of league insiders "consider it a foregone conclusion that owners will vote to allow some sort of institutional option," Sportico reported. It would likely increase team valuations, although there are big questions about who might actually be interested in these investments.
The average NFL team is worth more than $5 billion, according to Sportico. The Dallas Cowboys top Sportico's list of pro sports teams valuations at $9.2 billion.
The league could hold an Aug. 27 meeting to consider the matter, Sportico reported.
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