NFL Owners Approve Joint Venture With General Atlantic to Expand 32 Equity Investing

NFL owners approved a joint venture Tuesday between 32 Equity, the league's in-house investment arm, and General Atlantic, a private equity firm with about $130 billion under management. The vote came at the league's October meeting in New York. The 32 clubs vote as members of 32 Equity.

The parties have not disclosed financial terms. PJT Partners advised 32 Equity.

In a joint statement, the two sides said they "aim to advance new ways for people to experience and engage with sports, broaden access across markets around the world, and back innovative companies developing new technologies, platforms and experiences shaping the industry's future."

How the new vehicle is structured

An NFL representative told Sportico that 32 Equity and General Atlantic will both put in money and will also raise capital from outside investors. The rep declined to comment on a target size.

The NFL will be the general partner, according to the same representative. That role lets owners collect equity upside and a share of profits on investments known as carry.

Sportico reports that carry does not currently exist anywhere in the NFL's $22 billion-plus business. That is the piece that changes the economics for owners.

Sportico also reports that 32 Equity profits are split among owners outside the revenue shared with players under the salary cap. That separates it from sponsorships and media deals.

The track record so far

The NFL launched 32 Equity in 2013 with $1 million from each team, or $32 million. Capital calls of $64 million in 2019 and $160 million in 2022 brought the total to $256 million at that point. Late last year, owners authorized a further $32 million from 32 Equity to help seed a new pro flag football league.

The fund's holdings include Fanatics, On Location and Clear. Sports Business Journal, citing Pitchbook, counts 42 portfolio companies. SportCal and another outlet put the number at 46. The sources do not reconcile the figures.

Sportico lists a handful of exits over the dozen years. Appetize, a point-of-sale software company, sold in 2021 for $450 million. Skillz, a mobile gaming company the fund bought into in 2019, went public through a SPAC in 2020.

Most holdings have appreciated without being fully realized, according to Sportico. In August, 32 Equity sold its stake in EverPass Media to DAZN, per SportCal.

Why the league moved

NFL Chief Financial Officer Christine Dorfler told Sports Business Journal last November that the league was exploring changes to the fund. "It's been very successful, but is there a different structure that can help us scale it even further?" she said.

Some owners and executives had been pushing the league to be more aggressive, according to a source familiar with the deal who spoke to Sports Business Journal. Sportico reported last month that the NFL was talking with multiple potential partners about a larger fund. The stated motivation among a number of owners was more capital, deal flow and operational heft.

32 Equity is run by Sumit Varshney, senior vice president of corporate strategy and strategic investments. He reports to Dorfler.

Who General Atlantic is

General Atlantic was founded in 1980. Its sports holdings include a 49% stake in Mexican soccer club Club América, according to Sports Business Journal. SportCal lists a $2 billion investment in Authentic Brands Group, the owner of Reebok, and a 2024 investment in Brazilian sports marketing and rights firm LiveMode.

It is also one of several funds that together acquired a 20% stake in the commercial rights of Brazil's Liga Forte União, a deal SportCal says runs 50 years. Brazil is a target foreign market for the NFL.

Outside sports, its portfolio includes Anthropic, Vuori and Gymshark, according to Sportico and another outlet. The new venture is aimed at sports, media, fan engagement, ticketing, hospitality, consumer products and supporting technology.

Other leagues

The NFL is not alone. Sportico notes the NBA has its own equity platform with stakes in Nextiles and Sorare. MLB is invested in Jomboy Media. MLS's Emerging Ventures arm holds equity in Sorare, Nobull, SeatGeek and Fanatics. According to Sportico, none has reached the scale of the NFL's effort.

What remains open

The NFL has not said how large the new vehicle will be or how much each side will commit. It also has not said how outside capital will be raised or how carry will be divided among the 32 clubs. Those details will determine how much new money this creates for owners and how big a swing the league is taking.