As Panthers owner Jerry Richardson prepares to sell the team, it’s as good a time as any to review the rules that apply to the ownership of a franchise.
Per the NFL, an ownership group may consist of up to 24 owners, with one serving as the controlling owner.
As of 2015, the Panthers had 15 total owners. Richardson reportedly holds 48 percent; it’s unclear whether only his 48-percent share or the full equity is being put up for sale.
However it shakes out, and according to the NFL, a new controlling owner must personally own at least 30 percent of the equity. In nearly all cases, however, new owners have owned substantially more than that.
This comes from the reality that the prospective controlling owner must be able to demonstrate the financial ability to acquire the equity and to run the team. In other words, the NFL doesn’t want a prospective owner who has the financial wherewithal only to acquire 30 percent of the team. The owner must be able to fund the activities of the team, with a debt limit of $250 million per club.
Regardless of financial standing, all owners must be approved via 24 votes of current NFL owners. Which means that it takes only nine votes to block a controlling owner or a specific member of an ownership group.
All of this means that, in the end, only someone with a ton of money will be able to pull of a transaction like this, personally acquiring at least 30 percent of the total equity and demonstrating the ability to make payroll and otherwise satisfy the obligations that arise throughout the course of doing business.
