The NFL's investment arm teams up with General Atlantic to back sports companies
32 Equity, the NFL's investing vehicle with roughly $250 million in contributed capital, and General Atlantic, a $130 billion growth investor, will put in money and raise outside capital. The partnership's size wasn't disclosed.
By Robert Harrison ·
For information only, not investment advice.
The NFL wants a bigger slice of the sports business, and it's bringing a heavyweight. General Atlantic and 32 Equity, the league's strategic investment vehicle, announced a global strategic partnership on Oct 20 "to pursue growth investment opportunities across the sports industry." The clubs approved it by vote at the league's October meeting in New York, according to the release, and Bloomberg first reported the deal, per Sports Business Journal.
The structure is the interesting part. Both sides will contribute funds and raise outside capital, and the NFL will be the general partner, letting owners share in carry on top of equity upside, an NFL representative told Sportico. The rep declined to comment on the target size, and SBJ says terms weren't disclosed.
32 Equity started in 2013 with $1 million from each team and has grown to about $250 million through capital calls, not counting returns, according to SBJ. It has backed 42 companies, including Fanatics, On Location and Clear, per PitchBook data cited by SBJ. General Atlantic, founded in 1980, manages about $130 billion and counts Anthropic in its portfolio, Sportico reports. The pitch, in the company's words, is to back companies building "new technologies, platforms, and experiences." What that means in dollars is still unknown.
Sources
- General Atlantic and NFL’s 32 Equity Announce Global Strategic Partnership, General Atlantic
- NFL’s 32 Equity, General Atlantic launch investment fund, Sports Business Journal
- NFL's 32 Equity, General Atlantic Launch New Investment Partnership, Sportico
Tags: venture-capital