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In a groundbreaking move, National Football League owners recently approved Tom Brady as a minority owner of the Las Vegas Raiders. The seven-time Super Bowl champ acquired a 10% stake in the Raiders alongside his business partner, Tom Wagner, the founder of Knighthead Capital. This partnership comes with an equity investment of $220 million, valued at around $3.5 billion. Additionally, Brady and Wagner had to pay a 10% “flip tax” that will benefit the league’s other owners.
But what makes this deal truly unique is that CNBC’s 2024 NFL Team Valuations reveal the Raiders as the fifth-most valuable franchise in the NFL, worth $7.8 billion. This means that Brady and Wagner secured the stake at a significant discount compared to the franchise’s current value. The team’s relocation from Oakland to Las Vegas in 2020 has significantly boosted its revenue, with the Raiders now earning $780 million and generating $115 million in EBITDA in 2023.
Brady’s bid to become a minority owner of the team began in May 2023 and was recently approved by all 32 team owners. His foray into team ownership comes with restrictions, as he signed a broadcasting deal with Fox Sports in 2022. However, this new ownership role will limit his interactions with the team to ensure compliance with league rules.
In addition to his ownership in the Raiders, Brady is also a minority owner of the Women’s National Basketball Association’s Las Vegas Aces, further solidifying his presence in the Las Vegas sports scene. With this latest development, Brady becomes just the third former NFL player to transition into team ownership.
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