Tom Brady, a surefire future Pro Football Hall of Fame inductee and arguably the greatest player in NFL history, could be on the precipice of NFL ownership.
Brady and businessman Tom Wagner, the co-founder of Knighthead Capital Management, came to an agreement with Las Vegas Raiders owner Mark Davis to buy into the franchise last year. Their bid will be discussed at the NFL’s owners’ meetings on Tuesday in Atlanta, according to a league source. The league’s financial committee will review Brady’s bid, with a potential vote to follow.
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Here’s an explainer of how Brady and the Raiders got here:
What is the process for Brady becoming a part-owner of the Raiders?
Brady and Wagner had to reach an agreement with Davis to purchase a minority stake in the franchise, which they did in May 2023. From there, the bid is reviewed by the NFL’s finance committee, which was formed last year and is composed of owners. The committee decides if the bid will proceed to a vote. If it does, the bid must be approved by 24 of the NFL’s 32 majority owners.
What would his ownership share be, and how much is he paying for it?
According to league sources, the agreement between Brady, Wagner and Davis is for a 10 percent stake in the Raiders. CNBC estimated the value of the Raiders to be $7.8 billion last month, but that doesn’t mean Brady and Wagner have to pay $780 million.
That’s because a valuation is based on the estimated price the Raiders would draw if Davis sold the entire stake. The price Brady and Wagner agreed on with Davis has not been disclosed, but it’ll likely be substantially less than 10 percent of the valuation of the Raiders.
How does one pay for, say, a 10 percent share of an NFL team? Does he have to come up with cash, or is it a payout over a longer period?
Brady and Wagner have to pay cash. If they don’t have the full amount on hand, they’ll have to take out a loan.
Why has the process taken so long?
It has taken some time to nail down the final price. According to The Washington Post, the NFL’s finance committee raised concerns last year that Davis was giving Brady and Wagner too much of a discount. The Post reported earlier this month that Brady and Wagner have since increased their offer to “far more money than originally proposed.”
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What would be different for Brady given his TV broadcasting career?
The NFL has already placed restrictions on Brady in his role as a Fox analyst, which Brady agreed to before the start of this season, according to a league source. He’s not allowed access to other teams’ facilities and practices, nor can he attend broadcast production meetings, which usually include meetings with coaches and players ahead of games. He’s also not allowed to publicly criticize officials or other teams and could be fined or suspended if the league feels he breaks that policy. He also must abide by the league’s gambling and anti-tampering policies and is limited to “strictly social communication” with members of other teams.
What is Brady’s connection to Raiders owner Mark Davis?
In January 2020, Brady attended UFC 246 and was photographed smiling while talking to Davis, whom he’d previously met, and then-Raiders executive Marcel Reece. The Raiders were moving to Las Vegas, while Brady was coming off what would be his final season with the New England Patriots. With Brady set to become an unrestricted free agent that March, rumors were swirling that he could potentially sign with the Raiders to replace then-starting quarterback Derek Carr.
The Raiders considered pursuing Brady, but then-coach Jon Gruden, who had personnel power, ultimately decided against it a… (Top illustration: Meech Robinson / The Athletic; photos: Cooper Neill and Ethan Miller / Getty Images and Matthew Pearce / Icon Sportswire via Getty Images)