In a new wave of private equity investment in the NFL, billionaire Josh Harris, the new controlling owner of the Washington Commanders, reflects on the pressure and excitement of owning a professional football team. Harris, who paid $6 billion for the Commanders last year, assembled a 23-person ownership group that includes high-profile figures like Magic Johnson and Eric Schmidt. With a background in private equity and a successful track record in sports ownership, Harris is focused on delivering results for the Commanders after a disappointing season.
Harris, who also owns the Philadelphia 76ers and other sports teams, sees the value in investing in professional sports franchises, despite the high costs involved. With NFL team values skyrocketing and private equity firms entering the game, Harris is part of a select group of buyout-fund owners looking to capitalize on the lucrative sports industry. The NFL recently opened its doors to private equity firms, paving the way for more investments and potential buyouts in the future.
The appeal of owning an NFL team lies in the league’s financial stability, with revenue streams from media rights deals ensuring profitability even in times of economic uncertainty. NFL teams are considered low-risk investments for private equity firms, offering steady returns and the potential for long-term growth. With private equity funds like Blackstone, Carlyle, Arctos, and Ares Management having significant capital to invest, franchise values are expected to continue rising.
Harris’ background in private equity and sports ownership has prepared him for the challenges and opportunities of owning an NFL team. His success with the Philadelphia 76ers, despite initial hurdles, demonstrates his ability to navigate the competitive sports industry and drive performance. With a focus on improving infrastructure and fan experience, Harris is committed to building a successful franchise with the Commanders.
As more private equity firms enter the NFL ownership space, the landscape of team ownership is evolving. With restrictions on ownership percentages and regulations in place, the NFL is adapting to the influx of capital from Wall Street. As established team owners like Robert Kraft consider selling their franchises, the involvement of private equity firms presents new opportunities for investment-minded sports fans and financial players alike.
Overall, the intersection of private equity and professional sports ownership is changing the dynamics of the NFL. With billionaire owners like Josh Harris leading the way, the league is witnessing a shift towards a more diverse and financially savvy ownership group. As private equity firms continue to invest in NFL teams, the future of the league looks to be shaped by a new wave of owners with deep pockets and a strategic approach to building successful franchises.
