The NFL overwhelmingly voted in favor of allowing private equity firms to buy stakes in franchises. Art Rooney II and the Pittsburgh Steelers also voted “yes” to the rule. In fact, it passed by a 31-1 vote, with only the Cincinnati Bengals dissenting.
As outlined by PFT’s Mike Florio, the Bengals dislike the direction the NFL is heading.
“As one source with knowledge of the dynamics remarked, the Bengals consistently oppose anything that contributes to modernizing the league’s financial infrastructure.”
But that meant Pittsburgh said yes. While the vote received little coverage, tucked away during a busy week of roster cutdowns and Brandon Aiyuk news, it’s a big shift for the NFL. To be clear, there are parameters for the change. Firms can only buy up to 10 percent and won’t have voting shares or control over teams.
Responding to criticism, commissioner Roger Goodell downplayed the change.
“This is 10 percent of a team,” Goodell said via NFL.com. “All it is is a silent position that would allow access to capital for those teams that wish to offer 10 percent of their team. They will not be in any kind of decision-making influence in any way. It was very important when we began this that we strengthen the ownership. … We think the single-owner structure has been very valuable … and this does not impact that at all.”
The concern isn’t where the NFL is at. The concern is where it could go. Instead of having a single name own a team, could the league eventually allow a firm to control an organization? The league is doing its best to tamp down that worry with its NFL.com post, pinky-swearing it won’t change how teams are run while being “an important move for the business side of football.”
The Steelers know better than nearly any team about the value of being family-owned. Pittsburgh has been in the Rooney’s control since the franchise’s founding in July 1933. And while it’s grown to include many other partners, would they ever consider allowing a firm to come in and buy a portion of the team? We know Josh Harris and David Blitzer recently sold their shares as part of the agreement to buy the Washington Commanders. And as far as I’m aware, we don’t know who was on the buying end. Many speculated it was Thomas Tull as his influence over the team grows, but there’s been no reporting to confirm.
While Pittsburgh is unlikely to become the first team to bring in a private equity firm, some team will soon enough. Eventually, it might become commonplace. The only question will be where the NFL draws a line. That is, if it decides to draw one.
