Mark Davis, the owner of the Las Vegas Raiders, leaves the field alongside former NFL quarterback Tom Brady prior to the preseason game between the Dallas Cowboys and the Las Vegas Raiders at AT&T Stadium in Arlington, Texas, on August 26, 2023.
Matthew Pearce | Icon Sportswire | Getty Images
According to a source familiar with the situation, NFL owners are anticipated to give their approval for Tom Brady to become a minority owner of the Las Vegas Raiders on Tuesday, CNBC reports.
The seven-time Super Bowl winner is aiming to acquire approximately a 10% ownership stake in the Raiders alongside his business partner, Tom Wagner, founder of Knighthead Capital.
The agreement requires the support of 24 out of the 32 NFL team owners during the league meeting scheduled in Atlanta. However, it is reported that neither Brady nor Wagner will attend this meeting.
Details regarding the purchase price for Brady’s stake remain unclear. Nevertheless, CNBC’s Official 2024 NFL Team Valuations estimates the Raiders as the fifth-most valuable franchise in the league, with a valuation of $7.8 billion.
The franchise’s value has increased since the team’s relocation from Oakland in 2020. Prior to this move, the Raiders ranked among the lower half of the league’s 32 teams in terms of valuation.
Following the relocation to Las Vegas and the opening of their new stadium, the team’s revenue has seen substantial growth. In 2023, the Raiders generated $780 million in revenue, making it the third highest in the league, according to CNBC’s valuations.
Despite Allegiant Stadium being one of the NFL’s smaller venues, with a capacity of 65,000, the Raiders have managed to charge the highest ticket prices in the league, as reported by CNBC. The average general ticket price last season was $169.
Additionally, Allegiant Stadium regularly hosts a variety of non-NFL events throughout the year, contributing further to the franchise’s revenue.
Brady’s pursuit of ownership began in May 2023 but has faced delays due to concerns from some owners who believed the initial proposal was overly discounted.
After his first retirement from the NFL, Brady entered into a 10-year, $375 million broadcasting contract with Fox Sports in 2022. If he receives approval for ownership, he will face certain restrictions regarding his coverage of the team, according to the source who spoke with CNBC.
For instance, Brady will be permitted to broadcast Raiders games but will not be allowed to participate in in-person or virtual production meetings. Additionally, he may have limited access to team facilities, players, and coaches.
The league’s regulations also prohibit him from publicly criticizing officials and other teams.
The five-time Super Bowl MVP is already familiar with the Las Vegas sports landscape, as he owns a minority stake in the WNBA’s Las Vegas Aces, which is also owned by Mark Davis.
If approved, Brady will become just the third former NFL player to enter the ranks of team ownership.
Tom Brady’s Bid for Minority Ownership in the Las Vegas Raiders Set for NFL Approval
Overview of Tom Brady’s Ownership Bid
In a groundbreaking development within the NFL, legendary quarterback Tom Brady is close to obtaining minority ownership of the Las Vegas Raiders. This move has created a buzz in the sports community, given Brady’s iconic status and the Raiders’ rich history. With the NFL’s approval on the horizon, many are curious about what this means for the league, the Raiders, and Brady himself.
Why Tom Brady? The Impact of His Status
Tom Brady, often hailed as the greatest quarterback of all time, has transformed the NFL landscape not only as a player but now as a prospective owner. His exceptional career includes:
- 7 Super Bowl Championships
- 5 Super Bowl MVP Awards
- Numerous NFL records, including career touchdown passes
Brady’s involvement as an owner could attract more fans, engage younger audiences, and bring unique marketing opportunities to the Raiders organization.
The Las Vegas Raiders: A Brief History
The Raiders, originally founded in 1960, have undergone various transformations over the decades:
- 1960: Founded in Oakland, California
- 1982: Moved to Los Angeles
- 1995: Returned to Oakland
- 2020: Relocated to Las Vegas, Nevada
With a passionate fan base and a commitment to excellence, the Raiders are now positioned in one of the most vibrant markets in the NFL, making Brady’s potential ownership all the more significant.
Benefits of Tom Brady’s Minority Ownership
Brady’s bid for minority ownership in the Raiders comes with several potential benefits:
- Increased Media Attention: Brady’s presence is likely to draw more media coverage, enhancing the Raiders’ visibility.
- Marketing Expertise: With years of branding experience, Brady could help elevate the Raiders’ marketing strategies.
- Fan Engagement: Brady’s status can foster stronger connections with fans and younger demographics.
The NFL Approval Process
The approval process for minority ownership in the NFL is comprehensive and involves several steps:
- Submission of ownership proposal to the NFL
- Background checks and financial evaluations by the NFL
- Review by the NFL Finance Committee
- Final approval from NFL owners in a vote
As Brady’s bid is set for review, he must demonstrate both financial stability and a commitment to the league’s values.
Potential Challenges and Concerns
While Brady’s ownership bid is largely seen as a positive development, there are potential challenges:
- Conflict of Interest: Brady’s ongoing relationship with the Tampa Bay Buccaneers may raise questions about dual allegiances.
- Expectations and Pressure: As a high-profile owner, Brady may face immense scrutiny and expectations from fans and media alike.
What Other NFL Legends Have Done
Brady is not the first former player to transition into an ownership role. Historical examples include:
| Player | Team | Role | Years |
|---|---|---|---|
| Eli Manning | New York Giants | Part Owner | 2021-Present |
| Michael Jordan | Charlotte Hornets (NBA) | Owner | 2010-Present |
| Magic Johnson | Los Angeles Dodgers (MLB) | Owner | 2012-Present |
These examples highlight how former athletes can leverage their fame and experience in new roles within sports management.
The Future of NFL Ownership
Brady’s bid could signify a shift in how former players engage with the league after their playing days. Potential implications of this trend include:
- Increased Participation: More former players may seek ownership roles, bringing diverse perspectives to the table.
- Innovative Strategies: Ex-players could implement unique strategies informed by their firsthand experiences.
Case Study: The Miami Dolphins’ Ownership Transition
Another interesting case in NFL ownership transitions is the Miami Dolphins. The team has seen former players and celebrities involved in ownership and management roles. Notably:
- Stephen Ross purchased the team in 2008, bringing significant investment and a vision for modernization.
- The Dolphins have engaged former players in various capacities, enhancing community involvement and fan engagement.
This model exemplifies how integrating former players can enrich team culture and outreach.
First-Hand Experiences: Perspectives from NFL Owners
Many current and former NFL owners have shared insights on the responsibilities and challenges of ownership:
“Owning a team is about more than just the game; it’s about building a community.” – Jerry Jones, Owner of the Dallas Cowboys
“It’s crucial to stay connected with the fans and understand what they want.” – Robert Kraft, Owner of the New England Patriots
Practical Tips for Aspiring NFL Owners
For those interested in pursuing ownership in the NFL, here are some practical tips:
- Build a Strong Network: Foster relationships with influential figures in sports and business.
- Understand the Financial Landscape: Have a solid grasp of the financial commitments involved in owning a team.
- Stay Engaged with Fans: Listen to fan feedback and incorporate it into decision-making processes.
Conclusion
As Tom Brady moves closer to acquiring minority ownership in the Las Vegas Raiders, the potential impact is vast. This unprecedented move not only highlights Brady’s ongoing influence in the NFL but could also pave the way for more former players to take on ownership roles in the future. The league is watching closely, and fans are excited about what lies ahead for both Brady and the Raiders.
