Tom Brady, a sure-fire future Pro Football Hall of Famer and perhaps the greatest player in NFL history, could be on the brink of NFL ownership.
Brady and businessman Tom Wagner, co-founder of Knighthead Capital Management, reached an agreement with Las Vegas Raiders owner Mark Davis last year to buy the franchise. Their bid will be discussed at the NFL owners meeting in Atlanta on Tuesday, league officials said. The league's finance committee will consider Brady's bid, and a vote could follow.
even deeper
Tom Brady's Raiders ownership bid to be discussed at next week's owners meeting
Here's an explanation of how Brady and the Raiders got here.
What was the process for Brady to become part-owner of the Raiders?
Brady and Wagner were required to reach an agreement with Davis to buy a minority stake in the franchise, which they did in May 2023. From there, bids will be reviewed by the NFL's finance committee, which was formed last year and is made up of owners. The committee will decide whether to advance the bid to a vote. If it goes ahead, the bid would need approval from 24 of the NFL's 32 majority owners.
How much will his ownership be and how much is he paying for it?
The agreement between Brady, Wagner and Davis is for a 10 percent stake in the Raiders, league sources said. CNBC estimated the Raiders' worth at $7.8 billion last month, but that doesn't mean Brady and Wagner will have to pay $780 million.
That's because the valuation is based on the estimated price the Raiders would fetch if Davis were sold. whole stake. The amount Brady and Wagner agreed to with Davis was not disclosed, but it will likely be less than 10 percent of the Raiders' valuation.
For example, how does he pay for a 10 percent stake in an NFL team? Does he have to come up with cash, or is it a long-term payment?
Brady and Wagner must be paid in cash. If you don't have the full amount, you'll have to take out a loan.
Why did the process take so long?
It took some time to decide on the final price. According to the Washington Post, the NFL's finance committee raised concerns last year that Davis was giving excessive discounts to Brady and Wagner. The newspaper reported earlier this month that Brady and Wagner later increased their offer to “much more than their original offer.”
even deeper
Tom Brady gets defeated by former teammates Belichick and Kevin Hart during roast
What would be different for Brady considering a career in television broadcasting?
League officials said the NFL had already placed restrictions on Brady's role as a Fox analyst, which Brady agreed to before the start of the season. He is not allowed access to other teams' facilities or practices and cannot attend broadcast production meetings, which typically include meetings with coaches and players before games. They are also prohibited from publicly criticizing officials or other teams, and if the league determines that they have violated that policy, they could be fined or suspended. He also must abide by the league's gambling and anti-cheating policies and is limited to “strict social communication” with members of other teams.
What is Brady's relationship with Raiders owner Mark Davis?
In January 2020, Brady attended UFC 246 and was photographed smiling and chatting with Davis, whom he had previously met, and then-Raiders executive Marcel Reese. The Raiders moved to Las Vegas, and Brady was coming off what would be his final season with the New England Patriots. Brady was scheduled to become an unrestricted free agent in March of that year, and rumors swirled that he might sign with the Raiders to replace then-starting quarterback Derek Carr.
The Raiders considered pursuing Brady, but then-manager Jon Gruden, who had personnel control, ultimately decided against it and stuck with Carr. Brady went on to sign with the Tampa Bay Buccaneers, but his fling with the Raiders was the beginning of a deeper relationship with Davis, who took over as the team's top executive after the death of his father, Al, in 2011.
In May 2022, Brady attended a game against the Las Vegas Aces. He met with Davis, who purchased the WNBA franchise in 2021, and expressed his admiration for what they are building. On the court, the team was thriving, en route to its first WNBA Championship. From a fan base standpoint, the Aces regularly packed out games and drew some of the highest attendances in the league.
“I think (Brady) was really impressed with how far women's basketball has come,” Davis said. The Athletic last year. “And he was also impressed by the excitement and enthusiasm of the Las Vegas crowd.”
Immediately after the game, Brady's agent contacted Davis and asked if he was willing to sell his minority stake in the Aces. In March 2023, the Aces announced that they had reached an agreement with Davis that would make Brady a minority shareholder. The acquisition was approved by other WNBA owners in October. Mr. Brady's percentage of the stock and the amount he paid for it remain private.
“I think he knew I was in it and wanted to be in it,” Davis said. “His people contacted me and we talked about it, and he became a partner.”
In May 2023, Davis told ESPN that he had reached an agreement with Brady for the former quarterback to buy a minority stake in the Raiders.
“We are excited for Tom to join the Raiders,” Davis told ESPN. Owner. “
Mark Davis and Tom Brady attend UFC 246 in Las Vegas on January 18, 2020. (Jeff Bottari/Zuffa LLC via Getty Images)
Why is Brady buying stock in the Raiders rather than the Patriots, Buccaneers or his hometown San Francisco 49ers?
It all starts with the existing business relationship between Brady and Davis. You can't buy stock in a team unless the owner is willing to sell some of his stake, but it's unclear if that was possible with the Patriots, Buccaneers or 49ers. For example, the Patriots are 100 percent owned by Robert Kraft, who told FOX Business in February 2023: We've prepared this product to stay in your family for decades to come. ”
It's also possible that Brady viewed the Raiders as a more attractive investment. Of the four aforementioned teams, only the Patriots are worth more than the Raiders, at $7.9 billion, according to CNBC estimates. Their report puts the 49ers at $7.4 billion and the Bucks at $6.05 billion.
The report also suggests that the Raiders make more money than the other three teams. According to CNBC, the Raiders earned $780 million last year, trailing only the Dallas Cowboys ($1.22 billion) and Los Angeles Rams ($825 million). That, plus Davis' willingness to sell, is probably part of the reason the deal came together.
even deeper
Brady enters Patriots Hall of Fame, jersey number 12 retired by team
Does this mean Brady will have some sort of control over the Raiders?
No, for the NFL to be considered a majority owner, someone buying a franchise must have at least a 30 percent stake. At that point, they gain voting rights and control of the team. Brady and Wagner are only buying 10 percent of the Raiders stock, so they won't have any control over it. That's another reason they won't pay 10 percent of the Raiders' valuation.
“When someone buys something called limited partnership stock, they pay a much lower valuation because they have no control over it,” said the former NFL executive. The Athletic last month. “They're basically just passive investors. It's like selling the garage of your house. You can't sell it by the square foot. Some people might pay a lot less because they don't own the house. Sho.”
How many other minority owners do the Raiders have?
Davis and his mother, Carol Davis, are listed as co-owners of the Raiders, owning 47 percent of the team. That number would decrease if Brady and Wagner's bids were approved, but the Davis family would remain the primary owners. As of 2022, the NFL has lowered the minimum percentage of teams a longtime owner must control from 5 percent to 1 percent for teams that have had the same owner for at least 10 years.
When the late Al Davis became principal owner in 1972, he formed a company called AD Football Inc. with eight partners. The original eight partners have passed away, but their successors have become limited partners.
The Raiders' 2024 media guide lists six other “stakeholders” in the franchise: A. Boscatch, Jill Boscatch Lovingfoss, First Football, the Winkenbach Family, and Foxx. -Football, Sargent Family.
Could Brady still return to play in the NFL as a part owner?
No, NFL rules state that employees cannot own stock in a team unless they are part of the team owner's family.
even deeper
Tom Brady says he's 'not against' returning to the NFL
What is the Raiders' succession plan after Mark Davis? Is there a chance that Mr. Brady will eventually become the majority owner?
It's unclear. Mark Davis, 69, has no siblings, is single and has no children. Carol Davis is in her 90s. If they still have shares in the franchise when they pass away, that ownership can be transferred to someone else in the family or sold.
Brady could try to buy his own stock in the latter scenario. They may also try to buy their stock, or the stock of other limited partners, during their lifetime. For him to become a “controlling” owner, he not only needs to exceed the 30 percent threshold, but he also needs to own more stock than Carroll and Mark Davis. If Carroll and Mark Davis decide to sell, there will likely be suitors other than Brady.
“If that happens, it will be a real 'Game of Thrones,'” the former NFL executive said. The Athletic. “When something is worth $1,000, there's no conflict. When something is worth $10 billion, it gets pretty ugly.”
Get daily NFL updates delivered straight to your inbox for free.
Get daily NFL updates delivered straight to your inbox for free.
sign up
(Top illustration: Meech Robinson / The Athletic;Photos: Cooper Neal, Ethan Miller/Getty Images, Matthew Pearce/Icon Sportswire (via Getty Images)
