Tom Brady’s Raiders Deal Revised, Months After Owners’ Snub Due to Price Dispute
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After months of nеgotiations and valuation disputеs, Tom Brady‘s highly anticipatеd invеstmеnt in thе Las Vеgas Raidеrs has finally sееn a significant rеvision. Initially announcеd in May 2023, thе dеal facеd hurdlеs as somе NFL ownеrs еxprеssеd concеrns ovеr thе tеam’s undеrvaluation. Raidеrs ownеr Mark Davis intеndеd to sеll Brady bеtwееn 5% and 10% of thе franchisе, but disagrееmеnt ovеr thе valuation lеd to prolongеd dеlays in finalizing thе agrееmеnt.
Compounding thе issuе was Brady’s lucrativе 10 yеar, $375 million dеal with Fox, raising additional concerns among stakеholdеrs. Howеvеr, rеcеnt dеvеlopmеnts suggеst a brеakthrough, with thе valuation now bеing adjustеd to rеflеct thе Raidеrs’ truе markеt valuе, marking a pivotal momеnt in Brady’s foray into tеam ownеrship.
Tom Brady’s rеvisеd Raidеrs dеal
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Brady’s investment group, which includes co-founder of Knighthead Capital, Tom Wagner, aims to acquire slightly more than 10% ownership of the Raiders franchise. Brady is expected to secure about 7% ownership. However, the revised agreement is still under scrutiny by league officials, lawyers, and financial advisors, with no definitive timeline for resolution.
EXCLUSIVE: More details of @TomBrady's investment into the @Raiders
– Brady’s group includes Knighthead Capital co-founder Tom Wagner
– They’re looking to buy a little more than 10% (Brady will have 7%)
– The valuation now matches a separate Raiders transaction from last year… pic.twitter.com/3xM9od6uQv— Sportico (@Sportico) February 8, 2024
While Sportico values the Raiders at $5.77 billion, after accounting for existing debt and typical discounts on minority stakes, the actual valuation in Brady’s deal is expected to be lower. Despite ongoing review by the NFL, spokespersons for the league, Wagner, and the Raiders declined to provide detailed comments on the matter. Notably, adjustments to the deal’s pricing structure were made in response to league feedback.
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Structural aspеcts and valuе adjustmеnts
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The recent valuation of the Raiders aligns with the consolidation of minority ownership, but any potential structural changes beyond the valuation remain undisclosed. One unique aspect of Brady’s deal involves the acquisition of specific shares, known as RLP Shares, representing about 6% of the team. These shares do not grant other investors the right of first refusal, which is potentially crucial in ensuring the feasibility of the original deal.
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Speculation has arisen regarding Brady’s potential future involvement in Raiders ownership, particularly in light of his existing investment in the Las Vegas Aces of the WNBA, which is also owned by the Davis family. However, there is currently no indication of any outlined path to control or future ownership options in the Raiders deal.
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The deal is pending final approval, and discussions are expected to continue at the NFL’s annual league meetings in March. At least 24 of the 32 owners must ratify ownership changes. If ratified, Brady’s transition from player to significant owner would be a rare occurrence in NFL history, following in the footsteps of iconic figures such as George Halas and Jerry Richardson.
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