On Monday, the Colts announced an “[ownership transition](https://www.colts.com/news/colts-announce-ownership-transition-carlie-irsay-gordon-casey-foyt-kalen-jackson-jim-irsay)” that has the three daughters of the late Jim Irsay serving as owners of the franchise.
Despite the potential perception that the three sisters will lead the organization together, league rules are unambiguous. Principal owner Carlie Irsay-Gordon, who has been named the principal owner, must act as the person with ultimate authority to speak for the club and make decisions unilaterally.
Thus, while Irsay-Gordon and her sisters, Casey Foyt and Kalen Jackson, each carry the title of “owner,” Irsay-Gordon is and must be in charge.
Although she could agree to accept the input of the other owners, Irsay-Gordon is running the show — the same as every other principal owner in the NFL. That’s what the league requires, from all teams.
The rules were amplified after the passing of Oilers/Titans founder Bud Adams. He divided ownership of the team among the three branches of his family, but he failed to put any specific person in charge of the team upon his passing. It led to a protracted battle with the league office that quietly simmered (and at times boiled) behind the scenes until Amy Adams Strunk emerged as the principal owner.
As PFT explained at the time, Strunk’s sister, Susie Adams Smith, was poised to sell her 33-percent share of the team (the contract was signed) when Commissioner Roger Goodell [brokered a resolution](https://www.nbcsports.com/nfl/profootballtalk/rumor-mill/news/roger-goodell-helped-resolve-titans-ownership-issue) that had Strunk and her nephew, Kenneth S. Adams IV, buying out Smith.
That won’t happen for the Colts, because the league now mandates all owners to file an annual succession plan that puts one person in charge of the team if the current principal owner dies or becomes incapacity. Moving forward, Carlie Irsay-Gordon will have to do it. She’ll presumably name one of her two sisters.
There are two other wrinkles that must be considered regarding the new Colts ownership structure. First, estate taxes need to be properly handled. Over the years, multiple teams have been sold due at least in part to estate taxes. With franchise values mushrooming, it’s a critical consideration for any team that hopes to keep control in he family after the passing of the person who held most or all of the equity. (Most of the maneuvering is done in advance of the primary owner’s passing, with for example significant portions of franchise equity being transferred to family members.)
Second, any of the three sisters presumably have the ability to sell all or part of their equity. While the best approach would entail having a right of first refusal for the remaining owners, any of the sisters could sell.
Still, Irsay-Gordon has the most valuable share. Her third of the team (presuming ownership was divided equally among the sisters) carries control. Even if Foyt and Jackson sell to the same person (giving the new owner 66.6 percent), Irsay-Gordon would still have ultimate authority over the franchise.
For now, there’s no reason to think they’ll do anything other than effectively and harmoniously operate the franchise. However, the three-owner approach is unusual. And the one basic truth — which applies to all NFL teams — is that one and only one person must hold the decision-making authority.