Capital Stack of Professional Sports Teams - What Type of Investors Can Own Team?

Here is a summary of the capital stack composition for major U.S. professional sports leagues (NFL, NBA, MLB, NHL, MLS), based on current ownership, private-equity, and governance rules as of 2025.

1. National Football League (NFL)

• Controlling Owner: Must hold ≥30% of total equity; must be an individual (not entity). Typical ownership 30–35%.

• Private Equity Funds: Approved in 2024, capped at ≤30% total equity, ≤10% per fund.

• Non-Controlling Individual Partners: Total ownership capped at 24 individuals (including control person). Typical share 35–45%.

• Family / Legacy Trusts: Permitted if non-controlling, typically 5–10%.

Capital Stack Summary:

> Typical NFL team:

Control 30% |

PE 25% |

Minority 35% |

Family 10%.

Total franchise valuation ≈ $4–10 billion; control owner’s equity exposure ≈ $1.3–1.5 billion.

2. National Basketball Association (NBA)

• Controlling Owner: Must own ≥15% and have operational control. Typical 15–25%.

• Private-Equity / Institutional Investors: Allowed since 2021; may collectively own ≤30% per team, ≤20% per fund.

• Individual / Family Investors: Ownership capped at 25 persons. Typical share 40–50%.

• Legacy / Trust Interests: Approved by Board; typically ≤5%.

Capital Stack Summary:

> Typical NBA team:

Control 20% | PE 25% |

Individual 50% |

Family 5%.

Total franchise valuations ≈ $4–10 billion; control owner’s equity exposure ≈ $800 million–$2 billion.

3. Major League Baseball (MLB)

• Controlling Owner: Must own ≥30% and be approved by Commissioner. Typical 30–40%.

• Private-Equity Funds: Allowed since 2019; capped at ≤30% aggregate per team, ≤15% per fund.

• Minority Individual Partners: No formal numerical cap; typical share 30–40%.

• Family / Legacy Entities: Common for long-standing ownership families, 5–10%.

Capital Stack Summary:

> Typical MLB team:

Control 35% |

PE 25% |

Minority 35% |

Family 5%.

Total franchise valuations ≈ $2–5 billion; control owner’s equity exposure ≈ $700 million–$2 billion.

4. National Hockey League (NHL)

• Controlling Owner: Must be a natural person; practical norm 25–35% for voting control.

• Private-Equity / Institutional Funds: Permitted since ~2021, aggregate cap near 30%.

• Minority Individuals / Local Groups: Must be approved; typical share 35–45%.

• Family / Legacy Entities: Permitted if non-controlling, up to 10%.

Capital Stack Summary:

> Typical NHL team:

Control 30% | PE 25% |

Minority 35% |

Family 10%.

Total franchise valuations ≈ $1–2 billion; control owner’s equity exposure ≈ $300–700 million.

5. Major League Soccer (MLS)

• Investor-Operator (Control Group): Holds club operating rights under single-entity structure; effective ownership 30–40%.

• Institutional / Fund Investors: Allowed with league-level approval, typically 20–30%.

• Minority Individuals / Local Groups: Participate through operator holding entity, 30–40%.

• MLS Central League Ownership: Retains governance and central rights, 10–15%.

Capital Stack Summary:

> Typical MLS club: Investor-operator 35% |

Institutional 25% |

Minority 35% |

League 5%.

Total team valuations ≈ $0.5–1 billion; investor-operator’s effective equity exposure ≈ $150–300 million.

Comparative Overview