Private Equity's NFL Buying Spree Continues With Browns Deal At $9 Billion Value

The Cleveland Browns sold 10% of the club at a valuation of more than $9 billion to private equity firm Arctos Partners. The deal will be completed in three separate tranches, sources familiar with the matter told Bloomberg. NFL owners approved the first tranche, representing a 3% stake in the team, while approvals for the remaining two portions are expected at a later date. “The Cleveland Browns are one of the NFL’s most iconic and historic franchises, with a deeply loyal fan base and a leadership team committed to both the future of the organization and the surrounding community,” Chad Hutchinson, partner at Arctos said in a statement. “We are excited to join the Browns as a limited partner and support the organization’s long-term priorities.” Read Also: Federal Judge Calls US Crackdown On Anthropic 'Spectacular Overreach' The Cleveland Browns are valued at $6.1 billion, ranking them 23rd among the NFL's 32 franchises, according to Sportico, a digital content company that provides sports industry news. “Arctos brings deep and respected expertise across sports, and we welcome them as a limited partner,” said Dee and Jimmy Haslam, principal partners of the Browns and CEO and Chairman of Haslam Sports Group. “They share our long-term vision for investing in both the franchise and Northeast Ohio. We will continue working to build a championship-caliber organization, elevate the fan experience, and support transformative opportunities that create lasting impact for our region.” Private equity and venture capital in sports has been an accelerating investment trend, where firms are looking to acquire minority or majority stakes in professional teams, leagues and businesses, as company valuations grow. Major leagues such as the NFL, NBA, MLB, and NHL now permit private equity investment into their franchises. According to a report from Meketa, the global sports market reached $463 billion in revenue in 2024. It is projected to accelerate to just over $600 billion in revenue by 2028, and to nearly $863 billion by 2033. Drivers of this growth include "the rising value of media rights deals, increased fan engagement, the expansion of sponsorship and merchandising opportunities, and growth in sports-adjacent businesses," the report stated. Other private equity and venture capital firms have recently purchased sports franchises. Thrive Capital has bought a small stake in the San Francisco Giants through a new holding company called Thrive Eternal. In March, a consortium comprising Blackstone (NYSE:BX), Bolt Ventures, Aditya Birla Group, and The Times of India Group agreed to acquire the Royal Challengers Bengaluru (RCB) cricket franchise. Meanwhile, Ares Management Corp., Apollo Global Management (NYSE:APO) and Sixth Street Partners are reportedly having early-stage conversations regarding the National Basketball Association's (NBA) European expansion. Earlier this year, KKR & Co. (NYSE:KKR) entered into a definitive agreement to acquire Arctos Partners, an institutional investor in professional sports franchise stakes. Photo: Shutterstock Read Also: Private Equity's Big Four Are Starting To Crack As Exits Slow, Credit Stress Mounts