As NFL team values surge into the billions, aging team owners are facing new challenges in managing their estates and ensuring smooth transitions to the next generation. The average age of NFL team owners is now over 72, which means many are grappling with the twin burdens of estate taxes and succession planning. Without careful strategy, these transitions can lead to hefty tax bills and even family disputes over control of the teams.
Stephen Amdur, a mergers and acquisitions expert who advises wealthy team owners, notes that sports teams, once small parts of owners’ portfolios, have become their most significant assets. Owners must now decide how to pass on their teams, either by selling them while alive and paying capital gains taxes, or by transferring them to their families, potentially incurring estate taxes and risking internal conflict.
A number of high-profile NFL families have faced these challenges. Pat Bowlen, former owner of the Denver Broncos, laid out a detailed succession plan before his death in 2019, but the team was sold to Walmart heir Rob Walton in 2022 after a family dispute. Tennessee Titans founder Bud Adams’ estate was divided among family members, leading to a public power struggle. Joe Robbie, legendary owner of the Miami Dolphins, saw his family forced to sell the team in 1994 after struggling to cover estate taxes.
Currently, U.S. tax law subjects estates worth more than $13.6 million for individuals (or $27.2 million for couples) to a 40% tax rate, meaning owners of billion-dollar teams could be on the hook for hundreds of millions in taxes. With estate tax levels set to expire in 2025, owners are taking steps to minimize tax impacts.
Many are using tools like family limited partnerships, which allow them to reduce their taxable estate by splitting ownership with family members while maintaining control. Trusts are another popular strategy, as exemplified by Chicago Bears owner George Halas, who passed ownership to his grandchildren.
While some owners may plan to keep teams in their families, others may opt to sell all or part of their stake, especially with a fresh pool of buyers available. The NFL has recently allowed private equity firms to purchase minority stakes, giving owners more flexibility to access liquidity while retaining control.
As NFL Commissioner Roger Goodell noted, this move provides owners with an opportunity to reinvest in their teams and the broader league, ensuring the long-term health of their franchises while addressing personal financial goals.
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