The NFL is partnering with General Atlantic on a new vehicle that will dramatically accelerate the league’s investing efforts.
The plan, approved Tuesday at owners meetings in New York, would see the new venture invest in businesses on the frontline of fandom, sports, media and technology, the two sides said in a joint statement. The league’s 32 Equity and the private equity giant will both contribute funds to the endeavor, according to a source with direct knowledge of the of the plan, with outside capital also likely on the horizon.
The move could set NFL owners up for a brand new revenue stream. The NFL will be a general partner (GP) in the new vehicle, the source said, allowing owners to reap both equity upside and share in carry on the investments. That carry currently doesn’t exist in the NFL’s $22+ billion business.
Sportico reported last month that the NFL was speaking with multiple potential partners about the creation of a bigger fund to sit either inside or alongside 32 Equity, its current investing arm. The motivation from a number of owners was to give the league more capital, deal flow and operational heft.
The league created 32 Equity in 2013 with an initial backing of $32 million—$1 million from every owner. The NFL added $64 million in 2019 and $160 million in 2022, bringing the total at the time to $256 million. Late last year, owners authorized a $32 million investment from 32 Equity to help seed a new flag football league.
Other leagues have since started their own investment arms. The NBA has its own equity investment platform that includes stakes in startups like Nextiles and Sorare, MLB is invested in Jomboy Media, and MLS’ Emerging Ventures division has equity in companies such as Sorare, Nobull, SeatGeek and Fanatics. None, however, have grown to the scale of the NFL’s efforts.
32 Equity’s investments include Fanatics, On Location and DAZN, via its prior partnership of EverPass. There have been a handful of exits in the past dozen years—Appetize, a point-of-sale software company, was sold in 2021 for $450 million; Skillz, a mobile gaming company the fund bought into in 2019, went public via SPAC deal in 2020—but for the most part the investments have appreciated in value that has yet to be fully realized by owners.
While 32 Equity allowed owners to capture more upside on businesses that profit off the popularity of American football. It also gave owners a revenue stream that they did not have to share with players. 32 Equity profits are divvied up by owners outside of the revenue that’s shared with players under the salary cap, making it different from commercial arrangements like sponsorships or media deals.
Founded in 1980, General Atlantic has about $130 billion under management. Its portfolio includes AI giant Anthropic, sports apparel brand Vuori and nonalcoholic drink maker Athletic Brewing. Earlier this year the fund bought a 49% stake in Mexican soccer giant Club América.