Cheers and applause echoed through the halls of Raiders facilities as Tom Brady walked in there for the first team as an official part-owner. It took months of persuasion to finally get his investment in the club approved by the NFL but it finally happened.
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As rich as the 7-time Super Bowl winner is, it took help from Tom Wagner Knighthead Capital Management to get the deal over the line. So how much money did the duo have to put in to get the deal over the line?
Brady and Wagner are certainly getting their money’s worth, investing just $244 million for a 10% stake in the Raiders—a substantial discount from the team’s nearly $6 billion valuation. Each will receive 5%, and the deal includes a $24 million prorated tax related to the team’s relocation from Oakland to Las Vegas.
However, this deal has sparked tension among NFL owners, many of whom feel Brady is getting too big of a bargain. His investment effectively values the Raiders at $2.2 billion.
Though his $244 million offer is higher than his initial $175 million bid, which was rejected by the NFL, it’s still far short of the $525 million that owners like Jim Irsay believe Brady should pay for his stake.
There were also concerns about him working for Fox as a broadcaster. The NFL owners, already a paranoid and cautious bunch, believe that there should be restrictions on the three-time MVP’s access to other teams’ information. As a result, his ownership stake will severely hamper his role as an analyst.
However, Mike Florio believes this is just the start of Brady’s involvement with the NFL franchise.
Florio’s prediction for Brady’s future as franchise owner
During an episode of Pro Football Talk, Florio ranted about Brady’s minority ownership, stating that Mark Davis has opened the door for the Fox broadcaster to eventually acquire a bigger stake in the Raiders eventually.
According to NBC Sports, Florio believes that Tom Brady will soon hold a controlling stake in the Raiders. He argues that the NFL’s approval of this transaction signals that they won’t hesitate to greenlight similar deals in the future, potentially allowing Brady to acquire around 30% of the team without paying the full market value.
As a 7-time Super Bowl winner, Brady always strives to be the best, but he’s got a lot on his plate right now. Who knows if he is going to fulfill the entire 10-year contract he has with FOX or if he will leave to focus on his duties as part-owner of an NFL franchise.
