Private equity investment in NFL teams is coming, Washington Commanders owner Josh Harris says

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As the cost of buying a pro sports team grows, private equity investors are looking at this new asset class, and leagues like the NBA and MLB are open to it.

Josh Harris, owner of several professional sports teams and a co-founder of Apollo Global Management, said at the CNBC CEO Council Summit that he expects to see more and more private equity and institutional investor deals for sports teams.

Harris, who owns several other sports teams including the NBA's Philadelphia 76ers, the NHL's New Jersey Devils and the English Premier League's Crystal Palace — and has struck hundreds of deals as one of the founders of Apollo Global Management — said the deal to acquire the Commanders "was one of the hardest deals" he's ever been a part of.

"Raising that amount of capital was unique; it had never been done before," Harris said. "I think it may be leading to some rethink into the consideration of letting private equity, as an example, or institutional investors into the NFL."As the business that surrounds sports has continued to grow, so too have team valuations, in some cases 10% to 15% annually. In 2018, hedge fund manager David Tepper set the then-NFL record for a team purchase when he spent $2.

While U.S. pro sports leagues had prohibited private equity investors previously, they've largely softened their stances in recent years, aside from letting any firm be a controlling owner of a team. Ross Sorkin asked Harris if allowing private equity investors into sports would have any negative impacts on the teams or the league's overarching strategy as those investors look toward an exit.

 

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Private equity investment in NFL teams is coming, Washington Commanders owner Josh Harris saysAs the cost of buying a pro sports team grows, private equity investors are looking at this new asset class, and leagues like the NBA and MLB are open to it.
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