NFL owners have reportedly made the decision to dramatically increase their ownership stake in On Location Experiences, the hospitality company that controls much of the Super Bowl ticket market as well as many other high profile events. The Athletic reports that the league’s owners have decided to more than triple their share of the company, from 13.5 percent to nearly 45 percent.

Endeavor owns the majority of On Location Experiences, having purchased most of it for $660 million in 2018. The league’s owners, who had established the company in the first place as a hospitality arm, retained a share in the business, with the right to buy additional points if they wished before a deadline in April 2022.

From The Athletic:

TFL and ATBS for ticketing professionals

That sale granted call options (financial instruments that give the holder the right to buy into an asset — in this case, OLE) to 32 Equity, the NFL’s investment arm. According to Endeavor’s most recent quarterly report in November: “At any time on or prior to April 1, 2022, 32 Equity has the right to purchase … common units of OLE … that would result in 32 Equity having an aggregate ownership percentage interest in OLE Parent of 32%.

“Between April 1, 2022, and April 1, 2024, 32 Equity has an additional right to purchase that amount of additional common units of OLE Parent from the Company that would result in 32 Equity having an aggregate percentage interest in OLE Parent equal to 44.9%.”

Asked how much of On Location the NFL would own, one source replied 45 percent, suggesting the December owners’ votes envisioned exercising the next call option, too.

On Location Experiences core value is in its Super Bowl inventory, which consists of thousands of tickets to the NFL’s signature event each year, which are packaged for sale by the company rather than sold to the general public directly at anything resembling a “face value.”

Super Bowl LVI is scheduled for February 13 at SoFi Stadium in Los Angeles, though rumors have swirled that AT&T Stadium in Arlington has been lined up as a potential alternative site should California officials introduce capacity restrictions due to COVID-19 concerns. Currently, the “get-in” price for the game is $5,950 plus fees for upper level seats, which comes out to just over $7,000 after the $1,071 service fee tacked on. That is more than $500 higher than the “get-in” price available for a member of secondary marketplace site TicketClub.com – indicating that the league has no issues with pricing beyond where independent ticket brokers see the market. (See Super Bowl LVI ticket prices at TicketClub)

Beyond the Super Bowl, On Location Experiences sells package deals for the Ryder Cup, NCAA Final Four, Grand Slam tennis events and much more. The company consolidated much of the premium ticket market with the 2017 purchase of PrimeSport.