NFL house owners authorized Tom Brady as a minority proprietor of the Las Vegas Raiders on Tuesday.
The seven-time Tremendous Bowl champ purchased a couple of 10% stake within the Raiders together with his enterprise associate, Knighthead Capital founder Tom Wagner.
Brady and Wagner are shopping for into the Raiders at a couple of $3.5 billion valuation, with an fairness funding of about $220 million as a part of the partnership, in keeping with individuals accustomed to the negotiations. On prime of that quantity, Brady and Wagner additionally needed to pay a ten% “flip tax,” the proceeds of which will likely be divided among the many league’s 31 different house owners.
Individually, former NFL participant Richard Seymour bought a lower than 1% stake within the Raiders, additionally at a $3.5 billion valuation, the individuals stated.The NFL’s 32 crew house owners signed off on the deal unanimously on the league assembly in Atlanta, the individual advised CNBC. Brady and Wagner didn’t attend the assembly, in keeping with the individual.
The worth Brady is paying for his stake is unclear. However CNBC’s Official 2024 NFL Team Valuations pegged the Raiders because the NFL’s fifth-most useful franchise, value $7.8 billion.
The worth of the Raiders has climbed for the reason that crew relocated from Oakland in 2020. Previous to the transfer, the crew was valued among the many backside half of the league’s 32 groups.
Because the crew moved to Las Vegas and its new stadium, its income has elevated considerably. The Raiders earned $780 million in income in 2023, the third highest within the league, and generated EBITDA of $115 million, in keeping with CNBC’s valuations.
Whereas Allegiant Stadium is among the many smallest within the NFL at 65,000 seats, the Raiders compensated by charging the best ticket value within the league, CNBC beforehand reported. The common common ticket value final season was $169.
Allegiant Stadium, which is operated by the Raiders, additionally hosts quite a few non-NFL occasions all year long, which brings in extra income for the franchise. In 2023, the Raiders took in over $50 million from live shows and different occasions like school soccer.
Brady’s bid for a chunk of the crew started in Could 2023 however has been held up as a result of some house owners felt the initial offer was too discounted.
After he first retired from the NFL, Brady signed a 10-year, $375 million broadcasting cope with Fox Sports activities in 2022. Brady’s new possession will come with restrictions on how he covers the crew.
For instance, Brady could be allowed to broadcast Raiders video games, however he wouldn’t be permitted to attend in-person or on-line manufacturing conferences. He additionally could not have entry to crew amenities, gamers and coaches.
Brady can even be topic to the league guidelines that prohibit public criticism of officers and different golf equipment.
The five-time Tremendous Bowl MVP shouldn’t be new to the Las Vegas sports activities scene. He’s additionally a minority proprietor of the Women’s National Basketball Association’s Las Vegas Aces, which, just like the Raiders, is owned by Mark Davis.
Michael Ozanian, CNBC
Michael Ozanian is the senior sports activities reporter for CNBC.
