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Tom Brady, widely regarded as a future Pro Football Hall of Fame inductee and potentially the greatest player in NFL history, might soon venture into NFL ownership.
Last year, Brady, alongside businessman Tom Wagner, who co-founded Knighthead Capital Management, reached an agreement with Mark Davis, the owner of the Las Vegas Raiders, to acquire a minority stake in the team. According to a league source, their proposal will be discussed during the NFL owners’ meetings on Tuesday in Atlanta. The financial committee of the league is set to evaluate Brady’s bid, which may lead to a subsequent vote.
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Here’s an overview of the steps that brought Brady and the Raiders to this point:
What is the procedure for Brady to become a part-owner of the Raiders?
Brady and Wagner needed to secure a deal with Davis for a minority stake in the franchise, which they successfully achieved in May 2023. Subsequently, their proposal will be assessed by the NFL’s finance committee, established last year and comprised of team owners. This committee will determine whether the proposal advances to a voting stage. For the bid to be approved, it requires the consent of 24 out of the NFL’s 32 majority owners.
What will his ownership percentage be, and what is the cost?
League sources indicate that the arrangement between Brady, Wagner, and Davis pertains to a 10 percent stake in the Raiders. CNBC recently estimated the Raiders’ value to be $7.8 billion, but this doesn’t imply that Brady and Wagner will pay $780 million.
This distinction arises because a team’s valuation reflects the projected price a full stake would command if Davis opted to sell. The specific amount Brady and Wagner agreed upon with Davis remains confidential, but it is expected to be significantly lower than 10 percent of the Raiders’ estimated valuation.
How does one finance a 10 percent ownership in an NFL team? Is it required to pay upfront, or can it be structured over time?
Brady and Wagner are required to make a cash payment. If they do not possess the entire sum at once, they will need to secure a loan.
What has contributed to the delay in this process?
Finalizing the arrangement has taken longer than anticipated due to the nuances of determining the price. As reported by The Washington Post</“`html
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How will Brady’s broadcasting career be affected?
The NFL has imposed specific restrictions on Brady in his capacity as a Fox analyst, which he accepted prior to the commencement of the current season, as per a league source. He is prohibited from accessing the facilities and practices of other teams, nor can he participate in broadcast production meetings that typically involve discussions with coaches and players before games. Additionally, he is not allowed to publicly criticize officials or other teams, and any violation of this policy could result in fines or suspensions from the league. He must also adhere to the league’s gambling and anti-tampering regulations, and his interactions with members of other teams are limited to “strictly social communication.”
What is Tom Brady’s relationship with Raiders owner Mark Davis?
In January 2020, Brady was present at UFC 246, where he was seen smiling and conversing with Davis, with whom he had an earlier acquaintance, and also then-Raiders executive Marcel Reece. At that time, the Raiders were relocating to Las Vegas, and Brady was concluding his final season with the New England Patriots. As Brady was approaching unrestricted free agency that March, speculation arose regarding the possibility of him signing with the Raiders to take over from then-starting quarterback Derek Carr.
Although the Raiders contemplated the idea of acquiring Brady, then-coach Jon Gruden, who had control over personnel decisions, ultimately opted to remain with Carr. Subsequently, Brady signed with the Tampa Bay Buccaneers, marking the beginning of a more significant relationship with Davis, who became the franchise head after the passing of his father, Al, in 2011.
In May 2022, Brady attended a game for the Las Vegas Aces, where he reconnected with Davis, who had purchased the WNBA team in 2021, sharing his admiration for their progress. The Aces were excelling on the court and on the path to their first WNBA championship, consistently selling out games and attracting impressive attendance figures.
“I think (Brady) was genuinely impressed with the advancements in women’s basketball,” Davis shared with The Athletic last year. “He was also captivated by the crowd’s excitement and enthusiasm in Las Vegas.”
After the game, representatives of Brady reached out to Davis to inquire if he would consider selling a minority stake in the Aces. In March 2023, the Aces announced that Brady had finalized an agreement with Davis to become a minority owner. This purchase received approval from the other WNBA owners in October, although details regarding the size of Brady’s stake and the purchase price remain confidential.
“He was aware of my involvement, and I think he simply felt he wanted to be included,” Davis remarked. “His team contacted me, we discussed it, and he became a partner.”
In May 2023, Davis informed ESPN that he had reached an agreement with Brady for the former quarterback to acquire a minority ownership stake in“`html
Mark Davis and Tom Brady attend UFC 246 in Las Vegas on Jan. 18, 2020. (Jeff Bottari / Zuffa LLC via Getty Images)
