Tom Brady A certain future member of the Pro Football Hall of Fame and arguably the greatest NFL player in history may be on the verge of taking over NFL ownership.
Brady and businessman Tom Wagner, co-founder of Knighthead Capital Management, have reached an agreement Las Vegas Invaders owner Mark Davis bought the franchise last year. Their offer will be discussed Tuesday at the NFL owners' meeting in Atlanta, according to a league source. The league's finance committee will consider Brady's offer, followed by a potential vote.
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Here's an explanation of how Brady and the Raiders got here:
What does the process look like for Brady to become co-owner of the Raiders?
Brady and Wagner had to reach an agreement with Davis to buy a minority stake in the franchise, which they did in May 2023. The offer is then considered by the NFL's finance committee, which was formed last year and includes owners. The committee decides whether the offer will be put to a vote. If that happens, the offer must be approved by 24 of the NFL's 32 majority owners.
What would be his share of the property and how much would he pay for it?
According to league sources, the deal between Brady, Wagner and Davis calls for a 10 percent stake in the Raiders. Last month, CNBC estimated the Raiders' value at $7.8 billion, but that doesn't mean Brady and Wagner have to pay $780 million.
That's because the valuation is based on the estimated price the Raiders would fetch if Davis sold the car whole rate. The price Brady and Wagner agreed to with Davis was not disclosed, but it will likely be well below 10 percent of the Raiders' valuation.
How can you pay, say, a 10 percent stake in an NFL team? Does he have to come up with cash or is it a payout spread over a longer period of time?
Brady and Wagner must pay cash. If they do not have the entire amount in their account, they will have to take out a loan.
Why did the process take so long?
It took some time to determine the final price. According to the Washington Post, last year the NFL's finance committee expressed concerns that Davis was giving Brady and Wagner too much of a discount. The Post reported earlier this month, Brady and Wagner increased their offer to “a significantly larger amount than originally proposed.”
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What would be different for Brady given his TV career?
The NFL has already placed restrictions on Brady as a Fox analyst. He is not allowed access to other teams' facilities or practices, nor can he participate in broadcast production meetings, which typically include meetings with coaches and players before games.
However, in a scenario where he is approved as a minority owner, the restrictions will increase. According to an August report by ESPN, Brady will not be allowed to publicly criticize officials or other teams and could be fined or suspended if the league finds him violating the policy. The report says he will also have to abide by the league's gambling and anti-tampering policies and will be limited to “strict 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 chatting with Davis, whom he had met earlier, and then-Raiders director Marcel Reece. The Raiders moved to Las Vegas and Brady was finishing his final season with the New England Patriots. With Brady set to become an unrestricted free agent in March, there were rumors 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 the personnel power, ultimately decided against it and stuck with Carrie. Brady signed with the Tampa Bay Buccaneers, but the Raiders' flirtation was the beginning of a deeper relationship with Davis, who took over as head of the franchise after the death of his father, Al, in 2011.
In May 2022, Brady attended a Las Vegas Aces game. He caught up with Davis, who purchased the WNBA franchise in 2021, and expressed his admiration for what they were building. On the court, the team was thriving and on its way to its first WNBA championship. From a fan perspective, the Aces consistently sold out games and had one of the best attendances in the league.
“I think (Brady) was very impressed with how far women's basketball has come” Davis' Targets Athlete last year. “He was also impressed by the excitement and enthusiasm of the Las Vegas crowd.”
Shortly after the game, Brady's representatives contacted Davis and asked if he would be willing to sell a minority stake in the Aces. In March 2023, the Aces announced that Brady had reached an agreement with Davis to become a minority owner. The purchase was approved by the remaining WNBA owners in October. Brady's percentage of shares and the amount he paid for them remain undisclosed.
“He knew I was in it and I think he just felt like he wanted to be a part of it,” Davis said. “His people contacted me and we talked about it and he became a partner.”
In May 2023, Davis told ESPN he had reached an agreement with Brady for the former quarterback to buy a minority stake in the Raiders.
“We are excited about Tom joining the Raiders,” Davis told ESPN, “and it's exciting because he will be the third player in National Football League history (after George Halas Sr. and Jerry Richardson) to become an owner.”
Mark Davis and Tom Brady at the UFC 246 gala in Las Vegas, Jan. 18, 2020. (Jeff Bottari / Zuffa LLC via Getty Images)
Why is Brady trying to buy a stake in the Raiders and not 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 shares in a team unless the owner is willing to sell some of his shares, and it's unclear whether that would be possible with the Patriots, Buccaneers or 49ers. First of all, the Patriots are 100% owned by Robert Kraft, who told Fox Business in February 2023, “I will never sell it. We created it to hopefully stay in the family for many decades to come.”
It's also possible that Brady viewed the Raiders as a more attractive investment. Of the four teams mentioned above, only the Patriots – valued at $7.9 billion – are worth more than the Raiders, according to CNBC estimates. Their report shows the 49ers are worth $7.4 billion and the Bucks are worth $6.05 billion.
The report also shows that the Raiders generate more revenue than the other three teams. According to CNBC, the Raiders generated $780 million in revenue last year, trailing only the Dallas Cowboys ($1.22 billion) and the Los Angeles Rams ($825 million). That, plus Davis' willingness to sell, is likely part of the reason it all came together.
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Does this mean Brady would have any control over the Raiders?
NO. To be considered a majority owner by the NFL, the person buying the franchise must acquire at least 30 percent of the shares. At this point they could have voting rights and control over the team. Since Brady and Wagner are only buying 10 percent of the Raiders, they will have no control. That's another reason they won't pay 10 percent of the Raiders' valuation.
“If someone buys what's called limited partnership interest, they're going to pay a much lower valuation because they don't have any control,” former NFL executive said Athlete last month. “They're basically just passive investors. It's like selling the garage in your house. You wouldn't sell it per square foot. Someone would pay much less because they don't own the house.
How many other minority owners do the Raiders have?
Davis and his mother, Carol Davis, are listed as co-owners of the Raiders and own 47 percent of the franchise. That number will drop if Brady and Wagner's bid is approved, but the Davis family will remain the primary owners. Beginning in 2022, the NFL lowered the minimum percentage of a team that must be controlled by a long-term owner from 5%. 1% for teams that have had the same owner for at least 10 years.
When the late Al Davis became the company's principal owner in 1972, he and eight partners founded AD Football Inc. The original eight partners died, but their heirs became limited partners.
The Raiders 2024 media guide lists six other franchise “stakeholders”: A. Boscacci, Jill Boscacci Lovingfoss, First Football, Winkenbach Family, Fox Football and Sargent Family.
Could Brady still return to the NFL as part owner?
NO. NFL rules state that employees cannot own equity in a team unless they are family members of the team's owner.
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What is the Raiders' succession plan for Mark Davis? Could Brady finally become a major owner?
It is unknown. Mark Davis is 69 years old, has no siblings, is single and has no children. Carol Davis is over 90 years old. If they still have an interest in the franchise after their death, their interest can be transferred to someone else in the family or sold.
In the latter scenario, Brady could attempt to buy out their shares. He could also try to buy their shares during his lifetime – or the shares of other limited partners. Not only would he have to exceed the 30 percent threshold, but he would also have to own more shares than Carol and Mark Davis to become a “controlling” owner. If Carol and Mark Davis ever decided to sell, there would likely be suitors besides Brady.
“When this happens, it will be a real Game of Thrones,” the former NFL executive said Athlete. “When something is worth $1,000, there is no fight. When something is worth $10 billion, things get really ugly.
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(Image at top: Meech Robinson / Athlete; photos: Cooper Neill and Ethan Miller / Getty Images and Matthew Pearce / Icon Sportswire via Getty Images)
