Wednesday September 27, 2023
The Best Employers in Sports Survey is Now Open!

Changing Market Forces NFL To Reevaluate Ownership RulesĀ 

  • As franchise values grow, new ownership purchases have become more difficult.
  • Private equity could become a solution for franchise investment.
NFL ownership
Corey Perrine/Florida Times-Union
Front Office Sports Today

Writer’s Strike End a Boon for Sports Networks, Agencies

We delve into the potential long-term impact of the five-month strike.
Listen Now
September 26, 2023 | Podcast
Linkedin
Copy Link
Link Copied
Link Copied

The NFL created a new committee that will study ā€œall aspects of ownership policy,ā€ including rules related to liquidity requirements for purchasing teams and opening up investments currently limited to individuals. 

“The league detailed the ‘Special Committee’ in a memo it sent to teams last month, of which Front Office Sports obtained a portion on Thursday.

ā€œFollowing the Denver and Washington transactions, the Finance Committee agreed that it would be appropriate to look at the full range of ownership policies, including permitted debt levels, minimum equity requirements and holding periods, eligible categories of investors, and expanding opportunities for more diverse ownership,ā€ the memo stated. 

As NFL teams have increased in value, those with the means to purchase an NFL team have increasingly shrunk. That liquidity requirement has been cited as a significant factor why the NFL only has one non-white controlling owner, Jacksonville Jaguars owner Shad Khan. 

In a lawsuit filed Tuesday by former NFL Network reporter Jim Trotter relayed a conversation he had with Dallas Cowboys owner Jerry Jones in 2020. 

ā€œIf Blacks feel some kind of way, they should buy their own team and hire who they want to hire,ā€ Jones allegedly said.

The Sports Business Journal was the first outlet to report on the committee’s creation. 

The Denver Broncos sold for $4.65 billion last year, and the Washington Commanders commanded $6.05 billion. Under the 30% liquidity rule in the NFL’s Bylaws and Constitution, that meant Rob Walton needed nearly $1.4 billion cash for the Broncos, and Josh Harris had to fork over $1.8 billion for Commanders as part of the worldwide record purchase price for a sports team. 

The NFL ā€œis running out of billionaires,ā€ a sports banker told FOS after the Commanders were put up for sale last November.  

New England Patriots owner Robert Kraft, Atlanta Falcons owner Arthur Blank, Cleveland Browns owner Jimmy Haslam, and Denver Broncos co-owner/CEO  Greg Penner are on the new committee. According to the memo, Kansas City Chiefs owner Clark Hunt, the head of the Finance Committee, will oversee the new committee. 

Harris had to assemble a massive ownership group, and reviewing the assets under the league’s current rules led to a drawn-out process that insiders expect will only get more burdensome as team valuations continue to climb. 

ā€œThe deal was hard,ā€ Harris recently told Front Office Sports. ā€œIt was all stressful. I had to put together a group of 20 investors, raise capital, and then convince the NFL that we were going to be good stewards. So, it was a really complicated deal.ā€

Private equity, pension, and sovereign wealth funds cannot invest in NFL teams. Leagues like the NBA and NHL now allow PE investments, and sovereign fund investments have increasingly seeped into U.S. sports. 

Saudi Arabia’s PIF has invested heavily in sports in the U.S. and elsewhere in recent years, and the Qatar Investment Authority became an inventor earlier this year in Monumental Sports, the parent company of the Washington Capitals, Wizards, and Mystics.  

The Special Committee is expected to complete its work early next year and will present it at the league’s annual meeting scheduled for Orlando in late March.

Linkedin
Copy Link
Link Copied
Link Copied

What to Read

A Chicago Bears helmet.

Arlington Heights Looks To Break Stadium Logjam With Bears

Village board cites striking Bears deal as its top priority

NFL's Swift Mania Starting To Show Impact Through Merch Sales, Viewership

Taylor Swift stole the NFL's spotlight by attending Sunday's Chiefs game.
Cincinnati Bengals quarterback Joe Burrow throws a pass in the first quarter of the NFL game between the Cincinnati Bengals and Los Angeles Rams at Paycor Stadium.

NFL Fans Can Now Bet On Games While Streaming

BetVision will allow users to bet while watching NFL games.

Commanders Still Face Legal Fight Over Former Name

Team, owner accused by non-profit of defamatory conduct
podcast thumbnail mobile
Front Office Sports Today

Writer’s Strike End a Boon for Sports Networks, Agencies

0:00
0:00

Featured Today

First Take vs. FS1

Sharpe: 'First Take' Would Still Beat 'Undisputed' Without Stephen A.

Even if Smith leaves, Sharpe said he will still beat Skip Bayless in the ratings.
Rob-Manfred-MLB
September 25, 2023

Oakland-MLB Relationship Devolves Into Next-Level Toxicity

Commissioner, mayor have very different accounts of July meeting
Jacksonville Jaguars Team President Mark Lamping addressed community members at Strings Sports Brewery on Main Street for the first of 14 planned town hall sessions to present the team's plans for the new "stadium of the future" complex and address the public concerns.
September 25, 2023

Jacksonville Jaguars President Walks Back Stadium ā€˜Threat’

"Viewing those comments as a threat to leave Jacksonville isn't correct."
Chatri Sityodtong
September 25, 2023

ONE Championship's Quest To Challenge Rival UFC Through U.S. Expansion

Leveraging its Amazon deal, ONE Championship seeks to expand in U.S.

Careers

Powered By

Careers in Sports

Looking for a new job? Check out these featured listings and search for openings all over the world.
Chicago Cubs
Chicago
Fanatics
New York
Tri Star Sports and Entertainment Group, Inc.
USA - Multiple Locations

Miami Is A New Soccer Hub With FIFA, Argentina Moves

FIFA is moving 100+ employees to a new South Florida office.
September 25, 2023

NFL Owners' Debt Limit Could Increase To $1.6B

Currently, new NFL owners can use $1 billion of debt.
September 25, 2023

NFL's Next International Goal: Games in Spain, Brazil

A league executive says the games could take place in 2024.
September 25, 2023

LIV, PGA Tour Schedules Likely Clashing Despite PIF Deal

In 2024, LIV is reported to go head-to-head with the PGA Tour.
Sponsored

NHL’s Chris Foster on Amplifying Content Distribution With Automation

Learn how the NHL is using WSC Sports to increase fan engagement.
Teams without secured venue situations could be left out of a potential XFL-USFL merger.
September 21, 2023

XFL-USFL Merger Could Drop Teams, Change League Name

Teams without secured venues could be cut from a XFL-USFL merger.
September 20, 2023

U.S. Cricket Ambitions Get Big-Time Boost

ICC to stage major tournament in New York, Dallas, and Miami
Cristiano-Ronaldo
September 19, 2023

Saudi Pro League Has Long Way To Go Despite Spending Spree

The league's revenue still trails far behind its European counterparts.