NFL bans franchise stakes in player contracts – but ban could be challenged

The NFL has banned the 32 teams from giving franchise stakes to players or staff in their contracts. But the league is overriding the collective bargaining agreement in the process.

It has never happened before that an NFL team also gives a player or employee shares in the franchise with their contract. Nevertheless, the NFL has now banned this possibility.

The decision was made by NFL franchise owners last week in the wake of the sale of the Washington Commanders.

In other US leagues, it is quite possible for players or employees to be offered shares of the franchise in the course of contract negotiations. Lionel Messi, for example, is said to receive shares in Inter Miami after his career ends.

In the NFL, rumours have recently surfaced that Aaron Rodgers would also have liked to receive franchise shares in addition to his mega-deal with the New York Jets, as “NBC Sports” reported with reference to a league source.

Also, USC quarterback Caleb Williams has reportedly already told his negotiating team that he would like to become a co-owner of the team that would select him in the 2024 draft should he declare for the talent draft, “NBC Sports” also reports.

The NFL and team owners are now putting a stop to that speculation ahead of time.

NFL ban not covered in collective bargaining agreement

The ban, however, is not covered in the current Collective Bargain Agreement between the league and the players’ union NFLPA. The current Collective Bargain Agreement was last negotiated in 2020 and is still valid until 2030.

The decision by the league and team owners was made without the consent of the players’ union and could thus be challenged.

The NFL cites possible complications with the salary cap, problems with franchise changes regarding the publication of internals and the protection of franchise owners as reasons for the ban.

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10 months ago
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