Terry Pegula’s decision to sell 25 percent of the equity in the Bills is not a coincidence. The NFL is moving towards allowing private equity firms to invest in NFL teams, and private equity firms are gearing up to take advantage of this opportunity. According to the Financial Times, private equity firms are quietly preparing funds to invest exclusively in NFL teams. These funds would be specific to NFL franchises, with no investment in teams from other sports leagues. The NFL is still finalizing the details of how private equity investment will work, including the maximum percentage that can be sold to such funds.
This move by the NFL allows owners to raise significant capital from readily available pools of cash. As the value of franchises continues to rise, this provides an avenue for owners to cash in on their investment. Pegula’s decision to sell a portion of the Bills is likely tied to this new opportunity. It is expected that more owners will follow suit and take advantage of private equity investment in the NFL. This shift in ownership structure could change the landscape of team ownership in the league.