A potential stake sale in the Los Angeles Chargers signals a growing interest from private equity in the traditionally closed ranks of NFL ownership.
In 1977’s Semi-Tough, a satire of American football culture, ownership was caricatured as the domain of eccentric oil barons and swaggering showmen. Nearly fifty years on, ownership of NFL teams has changed—though perhaps not quite as much as the world around it.
Until recently, the league’s deep-rooted conservatism left little room for modern financial capital. But that’s starting to shift.
The Los Angeles Chargers are reportedly in advanced discussions with Arctos Partners, a Dallas-based private equity firm, over the sale of an 8% minority stake in the team. If finalised, the deal would mark one of the most high-profile examples yet of private equity entering the NFL. And it won’t be the last.
The Arctos move
Founded in 2019, Arctos has quickly built a portfolio spanning more than 20 professional sports franchises across the NBA, MLB, NHL and, more recently, the NFL.
Its existing minority stake in the Buffalo Bills, acquired in December 2024, was among the first deals approved under the league’s revised ownership rules.
The proposed Chargers deal would see Arctos take a passive 8% interest, with the Spanos family retaining controlling ownership. While relatively modest in scale, the deal could be significant; the NFL, once a fortress of family-held ownership, is now opening the gates to institutional capital.
The move follows the NFL’s August 2024 decision to allow private equity firms to own up to 10% of a franchise. As reported by the Financial Times, the decision was backed by all but one of the league’s 32 team owners and came with guardrails—firms must commit to holding their stakes for at least six years and are barred from gaining governance rights.
Why Private Equity wants in
Private equity has long circled professional sports. Steady revenue, rising franchise valuations, and the scarcity of team assets make ownership a compelling proposition.
Unlike many industries, sports leagues enjoy collective bargaining advantages and lucrative national broadcast deals. According to Forbes, the average NFL franchise is now valued at $6.9 billion—up nearly 25% year-on-year.
What PE firms see is reliable capital appreciation in a limited-competition environment. In short, NFL teams are rare assets with built-in inflation hedges. For Arctos and its peers, minority stakes offer a foothold without the complications of full control or operational risk.
At the same time, franchise owners increasingly face liquidity constraints, particularly as team valuations outpace the personal wealth of founding families. Minority stake sales to PE offer a means to raise capital—whether to finance stadium projects, succession planning, or international expansion—without ceding control.
Los Angeles Chargers players run out of the tunnel before an NFL football game against the Miami Dolphins, Sept. 10, 2023.
A conservative League opens the door
Until recently, the NFL had been the last major US sports league to allow private equity ownership. The NBA, MLB, and NHL have all gradually adopted structures to facilitate PE entry, albeit with limits. Firms such as Dyal HomeCourt, Arctos, and Ares Management now hold positions in multiple franchises across these leagues.
By contrast, the NFL has traditionally preferred buyers with local ties and deep pockets. That conservatism began to strain under the weight of modern economics. When the league’s finance committee recommended allowing minority PE ownership in early 2024, it reflected a recognition that long-term sustainability required broader capital access.
To mitigate risk, the NFL imposed strict limits. PE firms must be pre-approved, hold no more than 10% per team (and no more than holdings in five teams total), and refrain from any influence on football operations. These constraints help protect the league’s tightly held balance of power.
The broader landscape
The Chargers are not alone. The Miami Dolphins recently sold a 10% stake, including interests in Hard Rock Stadium and related properties, to Ares Management. The San Francisco 49ers are also pursuing a minority sale valuing the franchise at over $8.5 billion—a record for an NFL stake.
Beyond football, private equity is now embedded across the major North American leagues. Arctos holds interests in the Golden State Warriors (NBA), the Los Angeles Dodgers (MLB), and the Pittsburgh Penguins (NHL). Each of these leagues has benefited from PE-backed innovation in fan engagement, technology, and international outreach.
For the NFL, the stakes are both financial and cultural. While the money is welcome, the league is careful to preserve its image as a family-run enterprise. It’s telling that even in this new model, ownership control remains out of reach for outside investors.