Key Takeaways
- • The NFL and General Atlantic approved a new investment partnership at owners meetings in New York on Tuesday, targeting businesses across fandom, sports, media and technology.
- • The NFL will serve as general partner of the new vehicle, allowing owners to share in both equity upside and carried interest, a revenue stream that does not currently exist in the league's $22+ billion business.
- • 32 Equity and General Atlantic will both contribute capital and raise outside funds; the NFL declined to disclose the target fund size.
- • 32 Equity, launched in 2013 with $32 million, has grown to $256 million in committed capital through 2022 and includes stakes in Fanatics, On Location and DAZN.
Summary
The National Football League has partnered with General Atlantic on a new investment vehicle designed to significantly expand the league's investing activity, according to a joint statement from the two parties. The plan was approved Tuesday at owners meetings in New York. The new venture will invest in businesses on the frontline of fandom, sports, media and technology. Both 32 Equity, the NFL's existing investing arm, and General Atlantic will contribute funds and will also raise capital from outside sources, according to an NFL representative.
A structural element stands out for institutional observers. The NFL will act as general partner in the new vehicle, allowing owners to capture both equity upside and carried interest on investments. The NFL representative said carry does not currently exist within the league's business. Sportico had reported last month that the league was in talks with multiple potential partners about a larger fund that could sit inside or alongside 32 Equity, with owners seeking more capital, deal flow and operational capacity. The NFL declined to comment on the target size of the new vehicle.
32 Equity was created in 2013 with an initial $32 million, contributed at $1 million per owner. The NFL added $64 million in 2019 and $160 million in 2022, bringing total capital to $256 million at that time. Late last year, owners authorized a $32 million investment from 32 Equity to seed a new flag football league. Its portfolio includes Fanatics, On Location and DAZN, the latter via the prior EverPass partnership. Exits have been limited: Appetize, a point-of-sale software company, sold in 2021 for $450 million, and Skillz went public via a SPAC in 2020. Most holdings have appreciated, though that value has not been fully realized by owners. Unlike sponsorships or media deals, 32 Equity profits are distributed to owners outside the salary cap revenue shared with players.
Other leagues have also built investment arms, including the NBA's platform with stakes in Nextiles and Sorare, MLB's investment in Jomboy Media, and MLS Emerging Ventures' holdings in Sorare, Nobull, SeatGeek and Fanatics. None has reached the scale of the NFL's program.
General Atlantic, founded in 1980, manages about $130 billion. Its portfolio includes Anthropic, Vuori and Athletic Brewing, and earlier this year it acquired a 49% stake in Mexican soccer club Club América. The NFL's $22+ billion business is the basis for the vehicle's expected scale, though the fund's size has not been disclosed.
A structural element stands out for institutional observers. The NFL will act as general partner in the new vehicle, allowing owners to capture both equity upside and carried interest on investments. The NFL representative said carry does not currently exist within the league's business. Sportico had reported last month that the league was in talks with multiple potential partners about a larger fund that could sit inside or alongside 32 Equity, with owners seeking more capital, deal flow and operational capacity. The NFL declined to comment on the target size of the new vehicle.
32 Equity was created in 2013 with an initial $32 million, contributed at $1 million per owner. The NFL added $64 million in 2019 and $160 million in 2022, bringing total capital to $256 million at that time. Late last year, owners authorized a $32 million investment from 32 Equity to seed a new flag football league. Its portfolio includes Fanatics, On Location and DAZN, the latter via the prior EverPass partnership. Exits have been limited: Appetize, a point-of-sale software company, sold in 2021 for $450 million, and Skillz went public via a SPAC in 2020. Most holdings have appreciated, though that value has not been fully realized by owners. Unlike sponsorships or media deals, 32 Equity profits are distributed to owners outside the salary cap revenue shared with players.
Other leagues have also built investment arms, including the NBA's platform with stakes in Nextiles and Sorare, MLB's investment in Jomboy Media, and MLS Emerging Ventures' holdings in Sorare, Nobull, SeatGeek and Fanatics. None has reached the scale of the NFL's program.
General Atlantic, founded in 1980, manages about $130 billion. Its portfolio includes Anthropic, Vuori and Athletic Brewing, and earlier this year it acquired a 49% stake in Mexican soccer club Club América. The NFL's $22+ billion business is the basis for the vehicle's expected scale, though the fund's size has not been disclosed.
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