For the first time in his 30-plus years of owning the Patriots, Robert Kraft is divesting a part of the franchise.
Kraft has a deal in place to sell 8 percent of the Patriots, with 3 percent going to private equity firm Sixth Street and 5 percent going to Dean Metropoulos of the Metropolous & Co. investment firm, according to Sports Business Journal’s Ben Fischer.
According to Fischer, the deal values the Patriots as being worth over $9 billion, the second-highest valuation for an NFL team behind the Giants at over $10 billion.
While the deal will present an influx of cash to the 84-year-old Kraft — to the tune of around $720 million — the story noted that “Kraft has no intention of relinquishing control of the team.”
The deal — which will be voted on by owners in October — is the logical progression from last year’s institution of a private equity policy, which officially allowed owners to sell parts of their franchise to investment groups.
NFL.com’s Judy Battista reported after that policy was adopted that it would be very unlikely for “any changes in the way franchises run that are noticeable or meaningful to fans” to take hold after such a deal takes place.
“Access to cash should allow greater owner spending on franchises, which should theoretically allow greater financial stability for those teams,” Battista explained. “But an executive from a private equity firm is not going to be sitting in the draft room choosing the next quarterback.”
What Kraft intends to do with the cash was not reported. He recently invested $250 million into major renovations at Gillette Stadium, ensuring the 23-year-old building is updated to play host to the Patriots — as well as concerts and other entertainment events — for the next quarter-century.
Sixth Street was also a major investor in Bill Chisholm’s ownership acquisition of the Boston Celtics, while also investing in Legends Hospitality (founded by the New York Yankees and Dallas Cowboys), the San Antonio Spurs and Bay FC (of the NWSL) in North America, as well as FC Barcelona in Europe.
