The NFL’s 32 owners approved an increase to the debt limit Wednesday at their spring meetings in Nashville that will make it easier to finance ownership transactions for the league’s teams, which are worth $5.1 billion on average.
The acquisition debt limit was raised $200 million to $700 million, which will push the total for new buyers to $1.4 billion, including the $700 million in financing already available to each team owner. In October, the league raised the cap on debt existing owners can have against a team from $600 million to $700 million; it raised the limit from $500 million to $600 million in the fall of 2022.
The new buyer debt limit was a central part of the $6.05 billion purchase of the Washington Commanders in 2023. Josh Harris’ group originally proposed a deal that included $1.1 billion of secured debt (the limit allowed) and then reportedly $1 billion of additional unsecured debt on which the NFL pushed back. It was eventually removed from the final deal, but the process left many owners wondering what might happen with the next team that hits the market.
The NFL has looked at different ways to address the challenges of rising franchise valuations. The last four teams to sell have all changed hands at big price step-ups, with the Buffalo Bills ($1.4 billion, 2014), Carolina Panthers ($2.28 billion, 2018), Denver Broncos ($4.65 billion, 2022) and Washington Commanders.
In addition to debt limit changes, other potential levers the league could pull to increase the pool of potential new owners include lowering the amount that control owners must hold (new controlling owners must hold 30% of the team), the cap on the number of minority owners in a group, and lift its prohibition on institutional investors.
The NFL is the last major U.S. sports league to restrict institutional ownership, but the league has retained investment bank PJT Partners to serve as a liaison between the league and private equity firms interested in buying stakes in teams.
Commissioner Roger Goodell addressed reporters Wednesday with updates on the league’s current private equity stance. "We didn't ask for a vote, but I think it's fair to say that [owners] agree with the direction we're going," Goodell said. “We're going to continue to be very deliberate, but I expect it to be something for the end of the year."
With assistance from Eben Novy-Williams.
