Tom Brady’s Attempt to Buy 10% Stake in the Las Vegas Raiders Faces Opposition from NFL Owners

Tom Brady’s Attempt to Buy 10% Stake in the Las Vegas Raiders Faces Opposition from NFL Owners

In an attempt to further expand his influence in the sports world, football legend Tom Brady has expressed interest in purchasing a 10% stake in the Las Vegas Raiders. However, his ambitions have faced significant opposition from other NFL owners. Brady’s proposed deal to acquire the stake for $175 million has been met with skepticism from the owners, who believe that the valuation does not accurately reflect the true value of the team. Despite the potential benefits of aligning with a high-profile athlete like Brady, the approval of the other NFL owners remains uncertain, putting Brady’s ownership stake on hold until the end of the year.

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Tom Brady’s Attempt to Buy 10% Stake in the Las Vegas Raiders Faces Opposition from NFL Owners

Brady’s Intentions to Buy a Stake in the Las Vegas Raiders

Tom Brady, the former New England Patriots quarterback, has expressed his interest in purchasing a 10% stake in the Las Vegas Raiders. This potential ownership stake comes with a reported team valuation of $1.75 billion. As one of the most successful and recognizable athletes in the world, Brady’s intentions to become a minority owner in an NFL franchise carry significant weight and attention.

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The Potential Discount from Recent NFL Team Valuations

Brady’s proposed purchase of a 10% stake in the Las Vegas Raiders comes at a substantial discount compared to recent sales of NFL teams. In 2023, the NFL’s Washington Commanders sold for $6 billion, while the Denver Broncos were sold for $4.6 billion in 2022 to a Walmart heir. These high sale prices indicate the increasing value of NFL franchises, making Brady’s potential ownership stake an intriguing opportunity given the discounted price.

Other Athletes as Minority Owners in Professional Sports Teams

Brady’s interest in becoming a minority owner in the Las Vegas Raiders follows a trend of high-profile athletes diversifying their investments by purchasing ownership stakes in professional sports teams. Examples include Formula One driver Lewis Hamilton’s ownership stake in Formula One, basketball player Dwayne Wade’s ownership stake in the Utah Jazz, and baseball legend Derek Jeter’s ownership stake in the Miami Marlins. These athletes recognize the potential financial benefits and involvement in the management and operations of sports franchises.

Delay in Approval from NFL Owners

Despite Brady’s interest and intentions in purchasing a stake in the Las Vegas Raiders, approval from NFL owners has not been granted. Indianapolis Colts owner Jim Irsay expressed the need for a reasonable purchase price for Brady, highlighting the financial considerations involved in finalizing the deal. The timing of the next NFL owners’ meeting on December 12, 2023, means that Brady’s potential ownership stake will be on hold until the end of the year.

Brady and Davis’s Common Ownership of the Las Vegas Aces

Although Brady’s attempt to buy a stake in the Las Vegas Raiders is currently facing opposition, it is worth noting that Brady and Raiders owner Mark Davis share common ownership of another Las Vegas sports franchise. Brady recently purchased a minority stake in the Las Vegas Aces, a Women’s National Basketball Association (WNBA) team owned by Davis. The Aces have shown success by clinching their second consecutive WNBA championship, further showcasing the potential synergy between Brady and Davis in the sports ownership realm.

Valuation of the Las Vegas Raiders

Currently valued at $6.2 billion in Forbes estimates, the Las Vegas Raiders hold significant financial value. This valuation is influenced by multiple factors, including the team’s brand, revenue generation capabilities, market size, and potential for future growth. Brady’s interest in becoming a minority owner in the Raiders highlights the attractiveness of this sports franchise and its potential for further appreciation.

Brady’s Career and Financial Standing

Tom Brady’s retirement as a football legend solidifies his status as one of the greatest quarterbacks in NFL history. With career records in passing yards and touchdowns, his on-field success has been matched by his financial prosperity. Brady’s $512 million fortune includes earnings from his NFL checks and various endorsement deals. Over his 23 seasons in the NFL, Brady earned $332 million from his playing career, with the rest of his wealth coming from endorsements with well-known brands such as Under Armour, Ugg, Upper Deck, and DraftKings.

Brady’s Contract with Fox Sports

In addition to his potential ownership stake in the Las Vegas Raiders, Brady has secured a lucrative contract with Fox Sports to announce NFL games starting in 2024. This 10-year contract is valued up to $375 million, making it the largest contract in sports broadcasting history. This aspect of Brady’s career diversification further showcases his business savvy and ability to capitalize on his marketability and popularity as a retired football player.

Conclusion

Tom Brady’s attempt to purchase a 10% stake in the Las Vegas Raiders faces opposition from NFL owners due to the reported discount in the team’s valuation. However, Brady’s interest in becoming a minority owner aligns with the trend of athletes investing in professional sports teams. Despite the delay in approval from NFL owners, Brady’s common ownership of the Las Vegas Aces and his successful career and financial standing contribute to his capability and credibility as an owner. The valuation of the Las Vegas Raiders and Brady’s contract with Fox Sports further highlight the potential benefits of his ownership stake. As the situation continues to unfold, the sports world eagerly awaits a resolution that could solidify Brady’s role as a prominent figure in the ownership landscape of professional sports.

References

1. “Tom Brady Wants to Buy Part of the Raiders, but NFL Owners Are Blocking the Deal” – MarketWatch
2. “NFL Team Valuations 2021” – Forbes
3. “Athletes Who Became Team Owners” – CNN.com
4. “Tom Brady May Not Become Raiders Owner After All” – Yahoo.com
5. “Tom Brady’s Massively Lucrative Fox Sports Contract Breakdown” – Sports Illustrated

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