What is the story about?
What's Happening?
The New England Patriots, owned by Robert Kraft, are selling 8 percent of the team to two investors, valuing the franchise at $9 billion. Billionaire Dean Metropoulos is acquiring a 5 percent stake, while Sixth Street Capital is purchasing a 3 percent stake. The sale, pending NFL approval, does not include the New England Revolution. The Kraft family will retain over 90 percent ownership of the Patriots. This transaction marks one of the highest valuations for an NFL team, second only to the New York Giants.
Why It's Important?
The sale of minority stakes in the Patriots at such a high valuation reflects the growing financial strength and market value of NFL franchises. This move could influence future transactions and valuations within the league. For the investors, acquiring a stake in a prestigious team like the Patriots offers significant potential for financial returns and strategic partnerships. The deal also highlights the increasing interest from private equity firms in sports franchises, indicating a trend towards more diversified ownership structures in professional sports.
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