Pro Football Rumors
In August of 2024, NFL owners voted to permit private equity firms to purchase up to 10-percent stake in NFL teams with a minimum purchase of at least three percent for each stake. Back in May of this year, at the Orlando owners meeting, a vote was passed to approve the Browns’ sale of three percent of the team to Arctos Partners, LP, per Mary Kay Cabot of Cleveland.com.
Arctos, based out of Dallas, is one of only a few private equity firms permitted by the league to purchase a stake in NFL teams, alongside “Ares Management Corporation, Sixth Street, and a consortium group including Blackstone, Carlyle, CVC, Dynasty Equity, and Ludis, led by Hall of Fame running back Curtis Martin.”
The firms are able to hold stake in up to six teams but won’t hold voting power in any of them. Arctos owns eight percent of the Chargers and 10 percent of the Bills, along with minority stakes in the Boston Red Sox, Chicago Cubs, and Golden State Warriors.
According to Forbes magazine, the Browns hold the 18th-highest valuation in the NFL and 28th-highest of all sports franchises in the world. The publication valued the team at $6.4 billion, meaning Arctos’ stake should be worth $190MM. The team’s value recently saw a boost after the team committed another $200MM to their new plans for a $2.6 billion indoor stadium that broke ground in Brook Park at the end of April and is set to open in 2029.
The Haslam Sports Group originally committed to a $1.2 billion contribution which would have represented half of the proposed budget at the time of $2.4 billion. After initially upping only their contribution, the latest $200MM influx is intended to increase both the percentage of contribution to 67.5 percent and the budget for the project to $2.6 billion.
