Robert Kraft to sell 8% of Patriots to Sixth Street, Dean Metropoulos

Valuation and Deal Structure - New England Patriots is selling approximately 10% stake to private equity firms [1] - The valuation of the deal is at $9 billion [1] - The revenue multiple is a little over 11 times revenue, similar to the Commanders' sale two years ago [2] - The deal involves the issuance of primary shares, meaning the funds will go to the Patriots' balance sheet [3] Financial Implications - The Patriots will receive several hundred million dollars in cash from the deal [3] - The cash can be used for investments in Gillette Stadium, operations, and debt reduction [3] - The cash can be used to put money in escrow for guaranteed player contracts [4] Revenue and Value Drivers - NFL teams share approximately two-thirds of revenue equally, reducing the correlation between performance and revenue [5] - The Patriots own their stadium, generating revenue from concerts and other events [6] - The Patriots also own the New England Revolution of Major League Soccer, but this is not included in the deal [6] - The Patriots have loyal fans and the highest premium club seat prices in the NFL, at around $630 [6][7]