Arctos, a private equity firm, will purchase a 3% stake in the Cleveland Browns, according to multiple reports.
Private equity firms’ entry into NFL ownership represents a recent trend. The league approved the sale of such small stakes in August of 2024. Such a move allows owners to tap into almost instant cash liquidity.
While it’s difficult to know what the Browns are currently worth, recent valuations from Forbes – $6.4 billion – and CNBC – $7.15 billion – could provide $192 million-$214.5 million in cash.
Given the investment the team is making in a new facility in Brook Park and a degree of uncertainty that surrounds a portion of the financing courtesy of a lawsuit tying up the use of unclaimed funds, the move could prove significant.
The Browns previously sold a 0.1% ownership stake in the team to Pro Football Hall of Fame member Charles Woodson. It was later undone due to Woodson’s ownership of a liquor company.
Arctos owns parts of more than 30 professional sports teams, including the Los Angeles Chargers and the Buffalo Bills in the NFL.
George M. Thomas covers a myriad of things including sports and pop culture, but mostly sports, he thinks, for the Beacon Journal.
This article originally appeared on Akron Beacon Journal: Arctos private equity firm set to buy stake in Cleveland Browns