A few short weeks ago, the San Francisco 49ers made a strange but decisive move. So, they are selling a minority 6.2% of their collective ownership stake to three Bay Area families. This decision comes after a string of offers that the team has been seeing over the last few months. The York family controls 97% of the franchise, per team owner Jed York. As a result, they now get weekly calls from institutional investors who want in on the deal.
At the league meetings in March, Jed York dropped a bombshell. The family is selling a 5% to 10% ownership stake. This sale’s roster is the rockstars of the VC world. This trend points to the increasing importance of financial savvy in NFL ownership.
Due to the increased valuation, the Khosla family now will only acquire 3.1% of the team. Vinod Khosla, one of Silicon Valley’s most influential venture capitalists, co-founded Sun Microsystems and is now founder and managing partner of Khosla Ventures. The Deeter family stands to receive 2.1%, with Byron Deeter being a partner in the Bessemer Venture Partners. Finally, the Griffith family is buying a 1% stake through William Griffith, a partner at Iconiq Capital, which fits the model above. All three families have deep experience with venture capital, helping seed their new lives as part-owners of Virginia.
In other recent interview, partner Jed York has talked about the need to work with partners who make the organization better as a whole. He stated, “It’s just one of those things where if there’s an opportunity that makes sense, we would always explore that, but I’m not sure what we’re going to end up doing.” He added that with the family’s interest in selling additional stakes, they are seeking partners. These wonderful partners will provide tremendous support for the on-field and off-field efforts they have.
Yet the NFL landscape is not unfamiliar with ownership changes, as other teams are currently embroiled in their own negotiations and machinations. For example, the Los Angeles Chargers are currently looking for approval to sell an 8% stake to a private investment management firm.
As the San Francisco 49ers move forward with this sale, it reflects a growing trend among NFL teams to attract investors who can contribute not only financially but strategically to enhance the franchise’s future.
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