Tom Brady’s Ambitious Move to Join Raiders: The Path to NFL Ownership.
.
.So, how did Brady and the Raiders reach this pivotal point?
In May 2023, they secured an agreement to buy a minority stake from Davis.
The NFL’s finance committee, established last year and comprised of team owners, will assess the bid’s viability for a vote.
To move forward, three-quarters of the NFL’s 32 majority owners must endorse the proposal.
Sources reveal that the deal struck by Brady, Wagner, and Davis is for a 10% stake in the Raiders.
Although CNBC recently appraised the Raiders’ worth at approximately $7.8 billion, Brady and Wagner won’t be facing a $780 million bill.
This valuation estimates what the Raiders might command if Davis sold his entire share; thus, the terms of Brady and Wagner’s agreement are likely to remain significantly below the full valuation.
Cash is essential for the purchase.
Should they lack the necessary funds, a loan would be their next step.
The final price has been a sticking point, with The Washington Post reporting that the finance committee
previously voiced concerns about whether Davis was offering Brady and Wagner too generous a deal.
However, it’s emerged that Brady and Wagner have raised their offer, exceeding their initial proposal.
As Brady transitions into this new role reminiscent of a franchise owner, his previous responsibilities as a Fox analyst will be increased.
Recent reports suggest that should the ownership change be ratified, he will be barred from publicly criticizing officials or rival teams, under threat of fines or even suspension.
Additionally, he must adhere strictly to the league’s gambling and anti-tampering guidelines and can engage in only ‘social communication’ with players from other teams.
At this time, rumors circulated about Brady potentially signing with the Raiders as a replacement for quarterback Derek Carr.
Though interest was shown, coach Jon Gruden ultimately opted to retain Carr, allowing Brady to pen a deal with the Tampa Bay Buccaneers.
The burgeoning relationship between Brady and Davis deepened further.
In May 2022, Brady attended a Las Vegas Aces game, where he complimented Davis on the franchise’s success.
The Aces were thriving, regularly selling out games, leading to admiration from the legendary quarterback.
Brady’s representatives later expressed interest in acquiring a minority share of the Aces.
He successfully secured that stake in March 2023, a transaction that was officially blessed by WNBA owners in October.
Davis remarked, “He was truly impressed by the heights women’s basketball has reached and the enthusiasm of the crowd in Las Vegas.
” The connection established through this venture set the stage for Brady’s consideration of an ownership role with the Raiders.
In a wave of excitement, Davis announced in May 2023 that the deal for Brady’s minority stake in the Raiders was finalized.
“We’re thrilled for Tom to join the Raiders,” Davis commented.
“This marks him as only the third player in NFL history, after George Halas Sr. and Jerry Richardson, to transition into ownership.”
This venture is deeply rooted in the pre-existing rapport between Brady and Davis.
The opportunity to acquire a stake in a team hinges entirely on the owner’s willingness to sell part of their investment, something that may have proven challenging with the Patriots, Buccaneers, or 49ers.
A notable point is Kraft’s assertion about never relinquishing the Patriots, which he affirmed in a February 2023 interview.
Interestingly, by financial metrics, the Raiders emerge as a particularly enticing investment.
Current estimates show the Raiders earning $780 million in revenue over the past year, second only to the Dallas Cowboys and Los Angeles Rams.
The synergy of Davis’s willingness to sell and the Raiders’ financial prowess is likely a pivotal contributing factor to this partnership.
To qualify as a majority owner in the NFL, a buyer must obtain at least a 30% ownership stake, granting them pivotal rights and control over team decisions.
As Brady and Wagner are eyeing only 10%, they would not have the requisite control over operations and, consequently, would not be liable to pay the full valuation share.
Currently, Davis, together with his mother Carol Davis, retains 47% ownership of the Raiders.
If Brady and Wagner’s acquisition proceeds, this percentage would decrease, though the Davis family would still maintain principal ownership.
Ownership structures in the NFL also pose unique dynamics; NFL regulations prevent employees from having equity stakes unless they are family members.
The future remains undefined; Mark Davis has no siblings and is childless, while Carol Davis approaches her 90s.
Should their stakes remain intact upon their passing, Brady could see an opportunity to navigate further acquisitions.
The landscape of NFL ownership poses substantial competition, with interest likely from numerous suitors should the Davis family decide to divest.
“It’s bound to be a scene akin to ‘Game of Thrones’ when that moment arrives,” a former NFL executive mused, reflecting on the intensity such valuable stakes can engender.
