Sports franchises are considered part of the entertainment industry. Any purchase of stock or bonds or equity or ownership of any entertainment industry (MSNBC, CBS, FOX, Sony, etc.) or even royalties to entertainment property rights would qualify.
No. According to the law the proceeds have to be converted into property similar or related in service or use to the property so converted. Similar or related in services or use would be another sports franchise. I'm sure he could buy the entire Lingerie Football League and still have money left over for a foreign soccer team and that would take care of it.
And you’re still stuck with the fact that it wasn’t a forced sale so the tax law in question doesn’t apply anyway.