NFL Set To Take On Private Equity Investment
The National Football League is set to receive another infusion of cash, as if the country's most powerful sports league needed more.
NFL Commissioner Roger Goodell spoke to CNBC recently from the Sun Valley Conference in Idaho, an event featuring extremely wealthy people discussing ways to become even wealthier. And during the interview, Goodell revealed that the league will soon be opening itself up to investment from private equity companies, a departure from the current restrictions.
"We believe that would be something that could make sense for us in a limited fashion," Goodell said. "That would be something we think could complement our ownership and support our ownership policies."
Private equity money may soon become a requirement for new ownership groups, as franchise valuations reach unheard of heights. Even the wealthiest owners may need outside support from institutions that have billions in equity available to invest.
Goodell also spoke about the league's partnership with Netflix, and why the famously accessible sports league was willing to put more games on a platform with more limited reach.
READ: Streaming Platforms Continue To Snatch NFL Games, Forcing Fans To Make A Cost Decision
LAS VEGAS - NFL Commissioner Roger Goodell listens to a question during a news conference ahead of Super Bowl LVIII at Allegiant Stadium on February 5, 2024. (Photo by Ethan Miller/Getty Images)
NFL Continues Trying To Expand International Footprint
When speaking about the Netflix partnership, Goodell explained that it's part of a strategy to grow viewership in global markets. Instead of ending their longstanding practice of providing the vast majority of games on free to view broadcast channels, the Netflix deal is primarily designed to increase their international reach.
"I think we're going where the fans are," Goodell said. "Netflix has close to 300 million subscribers on a global basis, which was really attractive for us in being able to reach that global fan. International is a huge initiative of ours."
Sure, international might be a "huge initiative" for the NFL, but is Netflix the best way to reach those audiences? How many of Netflix's 300 million subscribers are based in the US? Wouldn't partnerships with broadcast networks in local markets be better, even if they're more complicated?
Maybe Goodell is right and Netflix is where the fans are; but with streaming service costs ever rising, the league is risking some of the goodwill it has with fans by pushing games onto yet another format. Amazon Prime was a risk, Netflix is too. Though given the league's dominance, maybe it'll be able to pull even more viewers away from the NBA on Christmas Day.