A New Play In Alternatives

You might own more than a jersey and season tickets to your favorite NFL team. Your retirement plan could now own a slice of it, too.

In 2024, the National Football League loosened ownership rules, allowing vetted private-equity firms to buy up to 10% stakes in teams.

Institutional investors, including pension funds, can invest in those PE funds and gain indirect exposure.

Some already have.

The Kentucky County Employees Retirement System committed about $100 million to Arctos American Football, run by Arctos Partners, which holds minority stakes in the Los Angeles Chargers and Buffalo Bills.

Oregon’s Public Employees Retirement Fund also has indirect exposure to franchises including the Bills through investments with Arctos, Sixth Street $TSLX ( ▼ 2.62% ), and Clearlake.

This month, KKR $KKR ( ▼ 0.45% ) agreed to acquire Arctos in a $1.4 billion deal, signaling growing institutional interest.

The appeal is scarcity and performance.

Across the five major US leagues, there are only about 150 teams available for partial ownership. The average NFL team is valued at $7.1 billion, roughly 20% higher than a year ago and double the average four years ago, per Sportico.

Franchise values have historically outpaced the S&P 500 and are considered relatively uncorrelated to public markets.

For pension funds seeking diversification, sports franchises now sit alongside private equity, real estate, and infrastructure. The game on Sunday may feel the same. The ownership box is quietly changing.