The NFL is requiring that bids for the Denver Broncos be fully capitalized to restrict buyers from raising money after an offer has already been made.
The club announced it was for sale on Feb. 1.
The league is looking to prevent a similar situation to the 2018 sale of the Carolina Panthers, which received investor-heavy offers from businessmen Ben Navarro and Alan Kestenbaum, but was only completed after billionaire David Tepper stepped up with a winning bid of $2.2 billion.
- The Broncos are expected to sell for a record price between $3.5 billion and $4 billion.
- The NFL will allow $1 billion of acquisition debt.
Currently, the Broncos are owned by the Pat Bowlen Trust, and its trustees have a fiduciary duty to get the most money possible from the sale, which must be approved by the NFL to be finalized.
BuyTheBroncos, a decentralized autonomous organization (DAO), is looking to raise over $4 billion to purchase the team. However, the DAO faces an uphill battle, as NFL bylaws require every ownership group to have a principal owner with a 30% stake and caps groups at 24 people.
Prospective minority owners Byron Allen and venture capitalist Robert Smith have expressed interest, along with a group that includes Peyton Manning and John Elway. Philadelphia 76ers and New Jersey Devils co-owner Josh Harris and Amazon founder Jeff Bezos could also bid.