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NFL Spins Off Premium Hospitality
The NFL is bulking up its premium hospitality business by joining a venture with two private-equity firms to create an as-yet-unnamed company to expand on what is now known as NFL On Location, which provides travel, entertainment and on-field access to its biggest events.
Bruin Sports Capital, led by former IMG President George Pyne, and RedBird Capital Partners, led by form Goldman Sachs sports banker Gerald Cardinale, join the NFL as investors.
The goal is to expand on current offerings, including packages for the Super Bowl, NFL Draft and international games, and eventually sell those services to other sports entities, awards shows, and major events, according to the Wall Street Journal.
The venture marks the first time the NFL, which already collects some $10 billion in revenue yearly from league-related activity, has spun off part of a business or formed a company to service other sports or entertainment companies, according to the paper. Kevin LaForce, vice president of corporate development for the league, told the Journal that NFL On Location is a “nicely profitable business’ with revenue of more than $10 million annually.
“We feel there is a fair amount of growth that can be found,” he added. Super Bowl packages this year through NFL On Location cost $6,000 to $10,000 per person, depending on seat location. Packages generally include airfare and hotel accommodations and a game day reception.