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Liverpool FC co-owner teases investment in three NFL franchises
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- Liverpool FC co-owner teases investment in three NFL franchises
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The Venn diagram of the Premier League and NFL is getting tighter. And with a handful of private equity companies now allowed to invest in the sport, expect even closer bonds soon.
It is now nearly two years since NFL owners voted to allow private equity (PE) firms – a type of investment business which pools individuals' and institutions' money to acquire companies and flip them for a profit – to take stakes in teams.
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In doing so, they became the last of the big North American franchise leagues to allow the $11 trillion private equity industry into their $500 billion-plus tent. There are caveats, though. Among other rules, PE firms cannot own any less than three per cent or any more than a 10 per cent stake in any single team, must hold their stake for at least six years and are not allowed to influence day-to-day operations.
What's more, only a small batch of elite private equity houses have been given the green light.
Among them is Dynasty Equity, the sports-specific investment company co-founded by industry veterans Jonathan Nelson and Don Cornwell which has partnered with another PE firm, $475bn Carlyle Group, with a view to buying into an NFL franchise.
Since its formation four years ago, Dynasty Equity has taken stakes in youth sports venue operator Unrivalled Sports and TMRW Sports, the sports media and investment company founded by golf royalty Tiger Woods and Rory McIlroy. Their highest-profile investment, though, has come across the Atlantic, where they acquired a small stake in Premier League soccer titans Liverpool for about $200m.
Photo by Chris Graythen/Getty Images
Since getting the nod from the NFL, the PE firms Arctos, Ares, Sixth Street have taken stakes in the likes of Buffalo Bills, Miami Dolphins, Los Angeles Chargers and New England Patriots.
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Dynasty and Carlyle, however, are yet to commit.
But rare comments from Cornwell shed some light on what their strategy might be in the long term.
"We look forward to [partnering] with an NFL franchise, two or three in the future," the former investment banker said in a wide-ranging interview with PE Hub, later adding, "we're not one to rush into something just because the door is open. We want to find the right situations, and that's what we're doing now."
Dynasty hosted their first Investment summit at the SoFi Center in Florida in May.
And while Cornwell clearly doesn't want to hurry into an NFL part-takeover for the sake of it, perhaps the topic of investment in American football will have been on the agenda.
