When it comes to NFL franchise valuations, the numbers start at the billion-dollar mark. So, with the news of Tom Brady acquiring a 10% stake in the Raiders, valued at $7.8 billion, does this mean that the GOAT paid $780 million? The answer is no, as Brady received a 50% discount in valuation for the expertise he brings to the table.
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After a long wait, Brady’s push to acquire a 10% stake finally materialized this month with his business partner, Tom Wagner. They both received equal shares.
While most minority sports investors get a 20-25% discount on team valuation, the GOAT received a whopping 50% due to a special task that has been assigned to him by Mark Davis.
According to reports, Davis expects TB12 to make pivotal contributions to the team’s sporting side. To be more specific, Mark hopes that Brady will help the Raiders find their next blue-chip prospect at the quarterback position, and possibly even train him.
Breaking: $3.5b valuation is over 50% discount!
Tom Brady and partner Tom Wagner to pay over $200 million for stake in Las Vegas Raiders https://t.co/IFrWwSuSCV— Mike Ozanian (@MikeOzanian) October 15, 2024
Brady and his partner’s reported final valuation for acquiring the shares stands at $3.5 billion. Including the pro-rated tax costs, the equity valuation comes to $2.2 billion.
So, not only does Brady get a say in team decisions but also gets double the valuation discount over other minority investors, making this a truly unique and what some might say, a baffling deal.
The question now is, does Brady have time on his plate to devote to the Raiders’ scouting job? After all, he is a broadcaster with Fox Sports and also has a YouTube channel to run.
Will Tom Brady prematurely end the deal with FOX?
Brady’s contract with Fox seems to pose a real issue for his ownership responsibilities! If he were like any other minority investor with no real power or expectations, no one would have batted an eyelid at his media commitments.
However, when the entire organization lowers its valuation to have you on board, Brady does have some big responsibility on his shoulders. But he also has an equally big role with Fox Sports who have signed him up for 10 years on a blockbuster $375 million deal.
This has made many wonder if Brady will even have the time to interact with the Raiders players and coaches for his duties. The lowest-hanging solution is to buy your way out of the contract but even for Brady, $300 million is no joke.
He will, however, have to adhere to several rules like never being able to meet other teams and their players. He also can’t mouth off against referees or their calls, as it would potentially land him in a world of hurt.
As things stand, TB12 will have to juggle his responsibilities with the Raiders and Fox Sports. Luckily for the GOAT, work ethic has never been his weakness.
