Future Hall of Fame quarterback Tom Brady was poised to take the next step in his post-football career by becoming an NFL team owner. Now, his deal to buy an ownership stake in the Las Vegas Raiders is reportedly in peril.
Months after retiring for the final time, the seven-time Super Bowl champion bought a minority stake in the WNBA’s Las Vegas Aces from team owner Mark Davis. Once that deal was approved, Brady and Davis turned their focus towards a similar agreement for a piece of the Raiders’ franchise.
- Tom Brady career earnings: $333 million
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Discussions ramped up in May and the two sides came to terms on a deal during the summer. However, NFL rules require all sales of stakes in a franchise to receive approval from 24-of-32 owners during a vote at the league meetings.
As many speculated about a potential NFL comeback for Brady after the Aaron Rodgers injury, though, Davis and the five-time Super Bowl MVP were reportedly fighting to save their deal. With another owner’s meeting coming up, both men reportedly have significant work to do in order to make it happen.
Appearing Sunday on CBS’ NFL Today, Jonathan Jones reported that Brady’s deal to buy a stake in the Raiders’ franchise will be addressed this week during
“There should be an update on Tom Brady’s pursuit of a partial ownership of the Las Vegas Raiders. Owners, not thrilled about there being a discount offer. That deal needs a lot of work if it’s going to get done
Jonathan Jones on Tom Brady’s deal to buy a minority stake in the Las Vegas Raiders
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Davis gave Brady a massive discount for an undisclosed percentage of the Raiders’ franchise. While the team is fully under his control, a significant discount on a minority ownership stake is still tens of millions of dollars when accounting for the Raiders’ estimated franchise value.
= Las Vegas Raiders franchise value (Forbes): $6.2 billion
While an argument could be made that Davis has the right to sell a portion of his team in whatever deal he wants, NFL owners are about the bottom line financially. If Brady receives a significant discount when he’s buying a portion of an NFL team, it negatively impacts the franchise value of every team across the league.
While the NFL might like the opportunity to have Brady as one of its owners, even if it’s a partial stake in the Raiders, owners’ decisions are financially-driven. If Brady and Davis don’t amend their deal to a price that is more reflective of the team’s market value, Brady’s dream of becoming an NFL team owner could slip away.
