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4:42Now PlayingThe New England Patriots are set to sell a stake to Sixth Street Partners and billionaire Dean Metropoulos at a valuation above $9 billion, according to people familiar with the deal.
Sixth Street will buy 3% while Metropoulos will purchase 5%, the people added, asking not to be named discussing private information.
Sixth Street declined to comment. Spokespeople for Metropoulos and the New England Patriots did not immediately respond to requests for comment. The Sports Business Journal was first to report the news.
The valuation would make the Patriots the second-highest valued NFL team, surpassed only by the New York Giants, which sold a stake to the Koch family for over $10 billion.
The transaction makes Sixth Street the third approved institutional investor to buy into an NFL team. Ares Management bought 10% of the Miami Dolphins and Arctos Partners has stakes in the Bills and Chargers.
The Kraft family will still own over 90% of the team when the deal is approved. Robert Kraft originally bought the Patriots for $175 million in 1994, and the team has won the Super Bowl six times under his ownership.
Sixth Street Partners is among the most active private equity groups in the sports world this year. The firm was part of the Bill Chisholm-led group that bought the Boston Celtics at a $6.1 billion valuation and bought a piece of the San Francisco Giants as well. The team also owns stakes in the San Antonio Spurs and the NWSL’s Bay FC.
Kurt Badenhausen Sportico's Sports Valuation reporter breaks down what this means for the franchise.
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