In a bid to compel better team succession planning, the NFL is seeking owners’ approval to dramatically increase penalties for teams that don’t comply with league rules about ownership structures. The measure, first debated at the Oct. 12-13 league meeting, reflects a growing concern that the league has insufficient power to enforce requirements that a single person have at least 30% equity and autonomy on all team matters.
This debate comes as five longtime controlling owners have passed away in the last three years, in some cases generating difficult legal battles. League insiders expect more teams to transfer to younger generations or new owners in the coming decade. Stricter enforcement of the controlling ownership rules would not necessarily prevent family disputes, but would act as a cudgel to force owners and their families to develop clear plans and address problems promptly.
The resolution would give NFL Commissioner Roger Goodell the power to fine teams up to $5M at first, and up to $10M annually, if they remain out of compliance after given a “reasonable opportunity” to fix the problem. Individual owners could be fined $2M to start and up to $5M annually. Today, possible sanctions are limited to the low six figures. “The drumbeat has been beating louder and louder, with several older owners looking to pass the torch,” a source familiar with the debate said.
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