The New England Patriots are now valued at $9bn following Robert Kraft’s decision to sell an 8% stake in the franchise for the first time.
Dean Metropoulos, a US financier, and private capital firm Sixth Street have acquired 5% and 3% stake, respectively..
Sixth Street already has a wide range of investments in sports teams in its portfolio. The company has stakes in the Boston Celtics and San Francisco Giants, as well as being an investor in Legends, an events and hospitality company formed by affiliates from the Dallas Cowboys and New York Yankees.
For Metropoulos, the founder of Metropoulos & Co., this marks his first investment into a US sports franchise. According to the company’s portfolio, the investment firm owns a variety of brands, such as a co-ownership in Nestlé Waters North America.
Both acquisitions are now under review and pending approval from the NFL.
New NFL funding rule
Kraft has been the sole owner of the Patriots since 1994, buying the franchise for $172m. Under his ownership, the team has won six Super Bowls under the steady hand of former Head Coach Bill Belichick and star quarterback Tom Brady.
In August 2024, the NFL confirmed it would be introducing new rules to franchise ownership and investment. This new rule enables sole owners like Kraft to sell up to 10% of the franchise to private equity firms, with each stake starting at a minimum of 3%.
The new rules state new investors must adhere to a six-year holding period and not exceed a maximum of six investments across multiple NFL franchises. Direct investment from sovereign wealth funds is prohibited.
This marks new territory for the NFL, which now enables franchises like the Patriots to gain additional capital to fund new initiatives and projects. Gillette Stadium, the Patriots home stadium, was renovated in 2023 at a cost of $250m.
Other NFL franchises which have leveraged the new investment rule includes the Miami Dolphins which sold a 10% stake to Ares last year, taking its valuation to $8.1bn. Arctos Partners acquired a 10% stake in the Buffalo Bills, while the Dallas Cowboys and New York Giants have also sold 10% stakes in their respective franchises.
The new investment rule will also see record franchise valuations across the league occur more frequently. The Cowboys are now valued at more than $13bn according to USA Today, with the Giants increasing its valuation to $10.1bn.
