In a groundbreaking move, the National Football League (NFL) has announced that it intends to take a percentage of potential private equity profits on future sales of ownership stakes. This decision comes as the league prepares to vote on allowing private equity firms to own up to 10% of NFL teams at a scheduled meeting on Tuesday.

While other major sports leagues, such as Major League Baseball, the National Basketball Association, and the National Hockey League, already permit investment firms to own a portion of their teams, the NFL has never before allowed private equity investment. If approved, the new policy will be a significant development for the league.

The specific details of the NFL's profit-sharing plan are yet to be revealed. It remains uncertain whether the league will apply the plan to all private equity firms or only some, and the percentage of profits the NFL would claim is also unknown. However, multiple sources have confirmed that the league has informally indicated a desire to receive a portion of any profits gained by investment firms from their partnership with the NFL.

Although the implications of such a profit-sharing arrangement are still uncertain, it raises questions about the impact on future private equity investment in the league. Some speculate that this new policy could potentially deter investment, while others believe it might not have a significant influence on the owners' vote.

As the NFL owners engage in the ongoing meeting, discussions surrounding the potential private equity ownership of NFL teams are at the forefront. Investment firms such as Blackstone Partners, Sixth Street, and CVC Partners are currently being considered as potential buyers. The NFL's decision to allow private equity ownership reflects the league's dedication to exploring new avenues for growth and attracting diverse sources of capital.

Over the past two decades, the NFL's total value has skyrocketed from $23.46 billion to an astonishing $190 billion, marking a remarkable 710% increase, as reported by Sportico. This exponential growth is evidence of the league's enduring popularity and market performance, surpassing even the impressive 660% rise of the S&P 500 index during the same period.

While the NFL declined to comment on the matter, it is clear that this is an evolving story with potentially far-reaching implications. As the league continues to navigate this decision and the vote on private equity ownership looms, industry watchers are eagerly awaiting further updates.