National Football League owners approved Tom Brady as a minority owner of the Las Vegas Raiders on Tuesday.
The seven-time Super Bowl champ bought about a 10% stake in the Raiders with his business partner, Knighthead Capital founder Tom Wagner.
Brady and Wagner are buying into the Raiders at about a $3.5 billion valuation, with an equity investment of about $220 million as part of the partnership, according to people familiar with the negotiations. On top of that amount, Brady and Wagner also had to pay a 10% “flip tax,” the proceeds of which will be divided among the league’s 31 other owners.
Separately, former NFL player Richard Seymour purchased a less than 1% stake in the Raiders, also at a $3.5 billion valuation, the people said.
The NFL’s 32 team owners signed off on the deal unanimously at the league meeting in Atlanta, the person told CNBC. Brady and Wagner did not attend the meeting, according to a person familiar with the matter.
“I am eager to contribute to the organization in any way I can, honoring the Raiders’ rich tradition while finding every possible opportunity to improve our offering to fans…and most importantly, WIN football games,” Brady said in a statement.
CNBC’s Official 2024 NFL Team Valuations pegged the Raiders as the NFL’s fifth-most valuable franchise, worth $7.8 billion, meaning Brady and Wagner got over a 50% discount. The typical discount for a limited partner with no say in how the team is run and no path to control ownership is 20% to 25%, according to sports bankers.
The value of the Raiders has climbed since the team relocated from Oakland in 2020. Prior to the move, the team was valued among the bottom half of the league’s 32 teams.
Since the team moved to Las Vegas and its new stadium, its revenue has increased significantly. The Raiders earned $780 million in revenue in 2023, the third highest in the league, and generated EBITDA of $115 million, according to CNBC’s valuations.
While Allegiant Stadium is among the smallest in the NFL at 65,000 seats, the Raiders compensated by charging the highest ticket price in the league, CNBC previously reported. The average general ticket price last season was $169.
Allegiant Stadium, which is operated by the Raiders, also hosts numerous non-NFL events throughout the year, which brings in additional revenue for the franchise. In 2023, the Raiders took in over $50 million from concerts and other events like college football.
Brady’s bid for a piece of the team began in May 2023 but has been held up because some owners felt the initial offer was too discounted.
After he first retired from the NFL, Brady signed a 10-year, $375 million broadcasting deal with Fox Sports in 2022. Brady’s new ownership will come with restrictions on how he covers the team.
For example, Brady would be allowed to broadcast Raiders games, but he would not be permitted to attend in-person or online production meetings. He also may not have access to team facilities, players and coaches.
Brady will also be subject to the league rules that prohibit public criticism of officials and other clubs.
The five-time Super Bowl MVP is not new to the Las Vegas sports scene. He is also a minority owner of the Women’s National Basketball Association’s Las Vegas Aces, which, like the Raiders, is owned by Mark Davis.
Brady will be just the third former NFL player to become a team owner.