National Football League owners approved Tom Brady as minority owner of the Las Vegas Raiders on Tuesday.
The seven-time Super Bowl champion bought about 10% of the Raiders together with his business partner, the founding father of Knighthead Capital Tom Wagner.
Brady and Wagner are buying into the Raiders at a valuation of about $3.5 billion, with an equity investment of about $220 million as a part of the partnership, based on people aware of the negotiations. In addition to that quantity, Brady and Wagner needed to pay a ten% “flip tax,” the proceeds of which could be divided among the many league’s 31 other owners.
Separately, former NFL player Richard Seymour acquired lower than a 1% stake within the Raiders, also at a valuation of $3.5 billion, the people said.
The NFL's 32 team owners unanimously signed the deal on the league meeting in Atlanta, the person told CNBC. Brady and Wagner didn’t attend the meeting, based on an individual aware of the matter.
In CNBC's official 2024 NFL team valuation, the Raiders were ranked the NFL's fifth Most worthy franchise at $7.8 billion, meaning Brady and Wagner received a reduction of over 50%. According to sports bankers, the everyday discount for a limited partner who has no say in how the team is run and no ability to regulate ownership is 20% to 25%.
The Raiders' value has increased for the reason that team moved from Oakland in 2020. Before the move, the team ranked in the underside half of the league's 32 teams.
Since the team moved to Las Vegas and its recent stadium, its revenue has increased significantly. According to CNBC estimates, the Raiders generated $780 million in 2023 revenue, third-highest within the league, and EBITDA of $115 million.
While the 65,000-seat Allegiant Stadium is among the many smallest within the NFL, the Raiders compensated by charging the best ticket price within the league, CNBC previously reported. The average general ticket price was $169 last season.
Allegiant Stadium, operated by the Raiders, hosts quite a few non-NFL events all year long, providing additional revenue for the franchise. In 2023, the Raiders took in over $50 million from concert events and other events resembling college football.
Brady's bid for a part of the team began in May 2023, but was held up because some owners felt they couldn't do it The original offer was too low-cost.
After retiring from the NFL for the primary time, Brady signed a 10-year, $375 million broadcast take care of Fox Sports in 2022. Brady's recent owner will come with restrictions about how he covers the team.
For example, Brady could be allowed to broadcast Raiders games but wouldn’t be allowed to take part in in-person or online production meetings. He also may not have access to team facilities, players and coaches.
Brady can be subject to league rules that prohibit public criticism of officials and other clubs.
The five-time Super Bowl MVP isn’t any newcomer to the Las Vegas sports scene. He can be a minority owner of the Las Vegas Aces of the Women's National Basketball Associationwhich, just like the Raiders, belongs to Mark Davis.
Brady will grow to be only the third former NFL player to grow to be a team owner.
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