Private Equity Interest Propels NFL Franchise Valuations to Record Levels

In a landmark update to CNBC Sport’s annual NFL franchise valuations, team values across the league have surged, fueled indirectly by private equity interest. The Dallas Cowboys remain the most valuable franchise in American sports at $12.5 billion, while the New York Giants climbed to third place at $10.5 billion—a 34% increase from last year.

The Cowboys, owned by Jerry Jones, held the top spot for the second consecutive year and were the only NFL team to generate over $1 billion in revenue last year. Dallas reported $577 million in EBITDA, thanks to sponsorships and naming rights deals that underscored its financial dominance. The Los Angeles Rams maintained their No. 2 ranking, with their valuation rising from $8 billion to $10.7 billion, also a 34% increase.

The Giants’ jump from fourth to third reflects a broader trend: the introduction of private equity cash has driven up team valuations even without direct investments. CNBC Sport’s Mike Ozanian reported that the Giants are in talks to sell a 10% stake at a $10.5 billion valuation. The potential buyer is not expected to be a private equity fund. Julia Koch and members of the Koch family reportedly reached an agreement to purchase a minority stake, according to Bloomberg.

San Francisco 49ers football field | Source: Pexels

While there have been only three private equity transactions for minority stakes in the past year—Arctos Partners acquiring 10% of the Buffalo Bills, Ares Management purchasing 10% of the Miami Dolphins (including Hard Rock Stadium and the Formula 1 Miami Grand Prix), and Arctos buying 8% of the Los Angeles Chargers—these deals have had an outsized impact. Approved in December and May, respectively, these sales signaled confidence in the NFL’s growth trajectory.

Individual and family investors have also driven valuations higher by paying premium prices to outbid institutional capital. For example, the Chicago Bears’ valuation surged nearly 40% year-over-year. A pending deal for the McCaskey and Ryan families to purchase a 2.3% stake at an $8.9 billion valuation set a record for an NFL minority transaction. The San Francisco 49ers sold a 6.2% stake for about $8.6 billion in May, pushing their valuation up from $7.4 billion last year. Similarly, the Philadelphia Eagles sold an 8% stake for $8.3 billion in December, raising their valuation by 21%.

This shift marks a departure from past practices, where minority stakes traditionally sold at steep discounts—about 25%—due to limited voting rights. With private equity interest and rising valuations eliminating those discounts, investors now see even small stakes as smart long-term investments.

Dallas Cowboys football field | Source: Pexels

The NFL’s ability to attract high-net-worth buyers is bolstered by its media rights landscape. The league holds an opt-out clause on its current deals after the 2029–30 season, with expectations of significant new partnerships. Deep-pocketed media companies, including Netflix and YouTube, are anticipated to compete aggressively for rights, offering another potential windfall for team owners.

The ongoing negotiations, soaring valuations, and evolving ownership landscape suggest that even indirect private equity influence has transformed the market for NFL teams. The trend points to sustained growth for America’s most popular sport and sets the stage for record-breaking transactions in the years ahead.