National Football League owners are expected to approve Tom Brady as minority owner of the Las Vegas Raiders on Tuesday, a person familiar with the matter told CNBC.
The seven-time Super Bowl champ is looking to buy about a 10% stake in the Raiders with his business partner, Knighthead Capital founder Tom Wagner.
The deal is subject to approval by 24 of the NFL’s 32 team owners at the league meeting in Atlanta. Brady and Wagner are not expected to be at the meeting, the person told CNBC.
The price Brady would pay for his stake is unclear. But CNBC’s Official 2024 NFL Team Valuations pegged the Raiders as the NFL’s fifth-most valuable franchise, worth $7.8 billion.
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, 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 also hosts numerous non-NFL events throughout the year, which brings in additional revenue for the franchise.
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. If he is approved for ownership, it will come with restrictions on how he covers the team, the person told CNBC.
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.
Read the full article here
