Patriots owner Robert Kraft is planning to divest 8% of the franchise, selling a 3% minority ownership stake to Sixth Street, a San Francisco-based private equity firm, and 5% to Dean Metropoulos, principal of the Metropoulus & Co. investment firm, according to Sports Business Journal.
Kraft is selling minority stakes at a time the Patriots are valued at more than $9 billion. Sixth Street is also invested in the Celtics, whose sale for $6.1 billion was approved earlier this year.
The NFL allowed owners to sell minority stakes to private equity firms last year. Shortly after the policy passed, Kraft hinted he might one day divest part of the franchise he’s owned since 1994.
“We’ve come up with a program that both satisfies the needs of the private equity firms but also supports the culture that we want to keep going,” Kraft told Forbes. “A win-win all around. I never thought I would sell anything out, but I’m considering it.”
Both sales are subject to approval next month at NFL owners meetings on Oct. 21-22. The Patriots are the second team to reach terms on a minority stake sale, following the Giants who agreed to sell 10% of their franchise to Julia Koch. That deal will also be subject to approval.
Kraft does not intend to hand over control of the team, per Sports Business Journal. Kraft’s son, Jonathan, president of the Kraft Group, is expected to be his successor as principal owner, chair and CEO of the Patriots.
Kraft bought the Patriots for $172 million from previous owner James Orthwein and presided over the most successful run in NFL history. Under his ownership, the Patriots have won six Super Bowls, made 10 Super Bowl appearances and earned 23 playoff berths.
A team spokesperson declined to comment when asked about the team’s reported minority sales.
Story by Andrew Callahan, Boston Herald.
