Roger Goodell addresses potential sovereign investment in NFL teams
© Kirby Lee-USA TODAY Sports
The NFL witnessed its most recent franchise sale earlier this week and the league remains in a position where (with the exception of the Green Bay Packers) only private individuals are allowed to hold a stake in its teams. Commissioner Roger Goodell was recently asked about the possibility of that model changing.
Sovereign investment in North American and European sports franchises has become in increasingly common in recent years, with Saudi Arabia’s Public Investment Fund (PIF) representing one of many examples of the power of foreign money. The proposed merger involving the rival PGA and LIV golf tours is one instance of the PIF’s expanding reach, something which prompted a question to Goodell about the NFL’s stance on the matter.
“We haven’t made the move as other leagues have to any kind of public investment,” Goodell said during an appearance on CNBC (via Nicki Jhabvala of the Washington Post, on Twitter). “It’s something we’ll contemplate at some point in time, but we really like our basic model now where we have private ownership. Those owners are in the meeting room, they’re part of the league and they’re part of our success.
The level of interest shown in football by the PIF or similar entities remains unclear, so the NFL has little urgency to explore foreign investment for the time being. Developments in that regard could be worth watching closely in other North American pro leagues, however, given the fact that many NFL owners also have a controlling stake in other franchises.
The exploding value of NFL teams has been a notable trend recently and finances were a potential issue raised with the $6.05 billion purchase of the Commanders from the group led by Josh Harris. He assembled 20 minority partners to help fund the deal, but all majority owners are required to provide 30 percent of the sales price up front upon purchase. With the cost of doing so set to continue increasing considerably, the idea of foreign investors joining the league could remain a talking point for the foreseeable future, though Goodell’s remarks point to an acceptance of that being unlikely to take place soon.
The NFL witnessed its most recent franchise sale earlier this week and the league remains in a position where (with the exception of the Green Bay Packers) only private individuals are allowed to hold a stake in its teams. Commissioner Roger Goodell was recently asked about the possibility of that model changing.
Sovereign investment in North American and European sports franchises has become in increasingly common in recent years, with Saudi Arabia’s Public Investment Fund (PIF) representing one of many examples of the power of foreign money. The proposed merger involving the rival PGA and LIV golf tours is one instance of the PIF’s expanding reach, something which prompted a question to Goodell about the NFL’s stance on the matter.
“We haven’t made the move as other leagues have to any kind of public investment,” Goodell said during an appearance on CNBC (via Nicki Jhabvala of the Washington Post, on Twitter). “It’s something we’ll contemplate at some point in time, but we really like our basic model now where we have private ownership. Those owners are in the meeting room, they’re part of the league and they’re part of our success.
The level of interest shown in football by the PIF or similar entities remains unclear, so the NFL has little urgency to explore foreign investment for the time being. Developments in that regard could be worth watching closely in other North American pro leagues, however, given the fact that many NFL owners also have a controlling stake in other franchises.
The exploding value of NFL teams has been a notable trend recently and finances were a potential issue raised with the $6.05 billion purchase of the Commanders from the group led by Josh Harris. He assembled 20 minority partners to help fund the deal, but all majority owners are required to provide 30 percent of the sales price up front upon purchase. With the cost of doing so set to continue increasing considerably, the idea of foreign investors joining the league could remain a talking point for the foreseeable future, though Goodell’s remarks point to an acceptance of that being unlikely to take place soon.
ESPN spoke with NBA, NFL about 'strategic partnership,' potential ownership stakes
By Jason Clinkscales | Last updated 7/21/23
NBA commissioner Adam Silver.
By Jason Clinkscales | Last updated 7/21/23
NBA commissioner Adam Silver.
Kirby Lee-USA TODAY Sports
Leaders at ESPN had early talks with the NBA and NFL about a "strategic partnership," which could lend to potential ownership stakes in the network, per Alex Sherman at CNBC.
Last week while joining other media leaders at the Allen & Company Sun Valley Conference, Walt Disney CEO Bob Iger told CNBC's David Farber that the company is considering selling some of its media operations but charted a different path for ESPN.
Iger said that he would be looking for a "strategic partner," but offered few details at the time other than stating that the union "could take the form of a joint venture or offloading an ownership stake."
Sherman reports that he and ESPN president Jimmy Pitaro have spoken with sports leagues about bringing them into the fold as minority owners, namely the NBA and NFL, which both have heavy presences on the network.
Whether anything comes from those conversations in the immediate future is hard to determine, but Sherman notes that any further partnership between ESPN and either or both leagues would be a boost for Disney:
The move would be a logical one for Disney as it tries to move past the traditional cable subscriber model and underscores how badly the company wants to find a solution for the sports network as its linear subscribers decline. Still, ESPN ratings have climbed in recent years on major sporting events. There’s no better partner for sports content than the leagues, themselves.
Superficially, it may make less sense for the NBA and NFL, which sign lucrative media rights deals with many media partners that fuel team revenue and player salaries with a range of media companies.
As with just about every television channel, ESPN has been greatly impacted by cord-cutting as consumers continue to give up on typically large cable packages (or cable, period) for streaming options.
Sports have been propping up live viewership for traditional media owners, yet they are also the most expensive properties in their offerings, and those costs have generally been passed down to consumers through higher subscription fees and to cable & satellite operators through affiliate fees.
Disney is also in the negotiation window with the NBA as its broadcasting rights agreement is due to expire after the 2024-25 season. The NBA is no stranger to deeper partnerships with a broadcaster as Warner Bros. Discovery manages NBA TV. The NFL is also looking for a way to offload some equity in its media properties, notably the NFL Network.
Leaders at ESPN had early talks with the NBA and NFL about a "strategic partnership," which could lend to potential ownership stakes in the network, per Alex Sherman at CNBC.
Last week while joining other media leaders at the Allen & Company Sun Valley Conference, Walt Disney CEO Bob Iger told CNBC's David Farber that the company is considering selling some of its media operations but charted a different path for ESPN.
Iger said that he would be looking for a "strategic partner," but offered few details at the time other than stating that the union "could take the form of a joint venture or offloading an ownership stake."
Sherman reports that he and ESPN president Jimmy Pitaro have spoken with sports leagues about bringing them into the fold as minority owners, namely the NBA and NFL, which both have heavy presences on the network.
Whether anything comes from those conversations in the immediate future is hard to determine, but Sherman notes that any further partnership between ESPN and either or both leagues would be a boost for Disney:
The move would be a logical one for Disney as it tries to move past the traditional cable subscriber model and underscores how badly the company wants to find a solution for the sports network as its linear subscribers decline. Still, ESPN ratings have climbed in recent years on major sporting events. There’s no better partner for sports content than the leagues, themselves.
Superficially, it may make less sense for the NBA and NFL, which sign lucrative media rights deals with many media partners that fuel team revenue and player salaries with a range of media companies.
As with just about every television channel, ESPN has been greatly impacted by cord-cutting as consumers continue to give up on typically large cable packages (or cable, period) for streaming options.
Sports have been propping up live viewership for traditional media owners, yet they are also the most expensive properties in their offerings, and those costs have generally been passed down to consumers through higher subscription fees and to cable & satellite operators through affiliate fees.
Disney is also in the negotiation window with the NBA as its broadcasting rights agreement is due to expire after the 2024-25 season. The NBA is no stranger to deeper partnerships with a broadcaster as Warner Bros. Discovery manages NBA TV. The NFL is also looking for a way to offload some equity in its media properties, notably the NFL Network.
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