Owning an NFL is most people’s dream right? I mean it’s a fan’s dream to run a multi-billion dollar team of their choosing. What factors are determined in the process of purchasing a team and what truly is the process for buying one?
The league’s ownership rules say that only individuals can buy a team, no corporate partnerships or funds. The potential buyer has to put up at least 30 percent of the purchase price, which would run into the hundreds of millions of dollars. The NFL also places limits on how much debt can be used to acquire a team; it recently increased that amount from $500 million to $1 billion. But even if you have the capital to make a bid for a team, you will need approval from other owners.
“When you’re buying a team, you’re not only making a deal between you and the seller, you also have to get the blessing from the NFL.,” said Anthony Di Santi, Global head of sports finance and advisory at Citi Private Bank.
“The buyer and seller can agree on price, but if the league doesn’t like the buyer or doesn’t like the price, it’s not going to happen.”
The NFL ownership group seems to look like an exclusive country club right? That’s because it basically is. With inflation and how much teams values continually increase, owners and sellers are very picky with who they allow owning a team. But with the social climate today involving race, a lot of people wonder why there are no black NFL owners. One person can tell you about their experience, Entrepreneur and record executive Dame Dash.
Recently, the entrepreneur was on Shannon Sharpe’s podcast, Club Shay Shay. There, Dash talked about his motivation to buy an NFL franchise. “They don’t look like us.” Dash claims. He later states, “They’re paying us. They’re laughing at us. That’s the way I see it.”
Eventually, the mogul asked a question to Shannon, “How many black men have tried to buy football teams and a white board said, ‘No?,’ I know Ray Lewis tried.” Of course, the Hall of Famer then inquires about the required capital.
Following Sharpe’s funding questions, Dash continues to sound off about being truly independent. He responds quickly with, “How many people, in general, put up their own money in the first place?” Then, he says, “We all have to come together…. put our money together ….. make a fund and go make it.”
Nevertheless, the legendary music executive simply states, “That’s the difference between us and them. They know how to leverage.” He unsuccessfully tried to purchase the Raiders. There might be other wealthy African American businessmen looking to do the same but the public might never hear about it. However, that situation is arousing even more opportunities for more people.
Be that as it may, Dame’s relentless drive is still apparent. If you’ve followed him over the years, you’d know he’ll just do it on his own. With that being said it is only natural that he pivots and chooses to create his own football league right? Dash gives details about what he wants the league to be like, “We look forward to making sure that every single game feels like a Super Bowl.” On the positive side, he boasts that including the cultural elements will elevate the experience.
Now the question is, “Will we ever see more diverse ownership in the most profitable league ever?”