National Football League owners approved Tom Brady as a minority owner of the Las Vegas Raiders on Tuesday, a person familiar with the matter told CNBC.
The seven-time Super Bowl champ bought about a 10% stake in the Raiders with his business partner, Knighthead Capital founder Tom Wagner.
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 the person.
The price Brady is paying 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, 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.
Read the full article here
