Carolina Panthers will be sold for record $2.2 billion
Jerry Richardson, the founding owner of the Carolina Panthers, has agreed to sell the team to David A. Tepper, a billionaire hedge fund owner, for a record-setting amount of at least $2.2 billion.
The sale price was confirmed by two people with knowledge of the deal.
The sale, which must be approved by at least three-quarters of the NFL’s owners, comes five months after Richardson said that he would sell the team. The announcement came shortly after an article in Sports Illustrated linked him to allegations of sexual harassment. The NFL continues to investigate those allegations.
The owners could vote on Tepper’s application as early as next week when they meet in Atlanta.
Richardson initially sought at least $3 billion for his team, but trimmed his expectations when no potential buyers emerged at that price. At least one potential buyer, Michael Rubin, the founder of the online sports merchandise retailer Fanatics, dropped out of the process when he was told he would have to pay substantially more than $2.5 billion for the team, according to two people with knowledge of the process.
Another bidder, Ben Navarro, who owns a financial investment group, was unable to raise the estimated $2.6 billion he was said to have offered. Questions were also being raised about his holdings in companies that offer credit cards to low-income consumers.
Tepper offered several hundred million dollars less than Navarro, but was favored by more owners because of his substantial wealth, estimated at $11 billion, and because he was vetted when he became a minority owner of the Pittsburgh Steelers. Tepper will have to sell his stake in the Steelers as part of his deal to purchase the Panthers.
“If he’s good enough for Art Rooney, he’s good enough for me,” one owner said, referring to the owner of the Steelers.
Tepper, who has already submitted much of the required paperwork to the league, is unlikely to face much opposition when the NFL owners on the finance committee review his application before sending it to the full ownership to vote on.
The proposed sale price will set a record for the highest-priced sale for any North American team.
