Nationwide Soccer League homeowners authorised 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 companion, 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 response to folks aware of the negotiations. On prime of that quantity, Brady and Wagner additionally needed to pay a ten% “flip tax,” the proceeds of which might be divided among the many league’s 31 different homeowners.
Individually, former NFL participant Richard Seymour bought a lower than 1% stake within the Raiders, additionally at a $3.5 billion valuation, the folks stated.
The NFL’s 32 group homeowners signed off on the deal unanimously on the league assembly in Atlanta, the individual informed CNBC. Brady and Wagner didn’t attend the assembly, in response to an individual aware of the matter.
“I’m wanting to contribute to the group in any means I can, honoring the Raiders’ wealthy custom whereas discovering each attainable alternative to enhance our providing to followers…and most significantly, WIN soccer video games,” Brady stated in an announcement.
CNBC’s Official 2024 NFL Group Valuations pegged the Raiders because the NFL’s fifth-most precious franchise, value $7.8 billion, that means Brady and Wagner acquired over a 50% low cost. The everyday low cost for a restricted companion with no say in how the group is run and no path to manage possession is 20% to 25%, in response to sports activities bankers.
The worth of the Raiders has climbed because the group relocated from Oakland in 2020. Previous to the transfer, the group was valued among the many backside half of the league’s 32 groups.
Because the group 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 response to CNBC’s valuations.
Whereas Allegiant Stadium is among the many smallest within the NFL at 65,000 seats, the Raiders compensated by charging the very best ticket worth within the league, CNBC beforehand reported. The common basic ticket worth 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 group started in Could 2023 however has been held up as a result of some homeowners felt the preliminary supply was too discounted.
After he first retired from the NFL, Brady signed a 10-year, $375 million broadcasting take care of Fox Sports activities in 2022. Brady’s new possession will include restrictions on how he covers the group.
For instance, Brady can 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 group amenities, gamers and coaches.
Brady may also be topic to the league guidelines that prohibit public criticism of officers and different golf equipment.
The five-time Tremendous Bowl MVP is just not new to the Las Vegas sports activities scene. He’s additionally a minority proprietor of the Girls’s Nationwide Basketball Affiliation’s Las Vegas Aces, which, just like the Raiders, is owned by Mark Davis.
Brady might be simply the third former NFL participant to turn out to be a group proprietor.