Indianapolis Colts owner orders Tom Brady to pay massive price for Las Vegas Raiders ownership stake

Indianapolis Colts owner calls on Tom Brady to pay massive price for Las Vegas Raiders ownership stake

Tom Brady agreed to a deal with Las Vegas Raiders owner Mark Davis to buy a stake in the NFL franchise earlier this year. Now, amid strong objections from NFL owners regarding the deal, new insight explains why there’s so much opposition to the deal.

Brady, who previously bought a stake in the WNBA’s Las Vegas Aces from Davis, set his sights earlier this year on becoming an NFL franchise owner. While he couldn’t afford a team on his own, the future Hall of Fame quarterback had enough to buy a minority stake in a club.

Tom Brady career earnings:
$333 million
Brady and Davis ramped up negotiations in May, finalizing a deal shortly after. However, each sale involving ownership of a team requires the approval of 24 of the 32 owners. Before and after this week’s NFL owners meeting, it was clear Las Vegas didn’t have that support.

Mark Maske and Nicki Jhabvala of The Washington Post report that Davis has agreed to sell 10% of the Raiders for less than $200 million. While the majority of NFL owners oppose the deal, Colts owner Jim Irsay explained to Ben Volin of the Boston Globe what he and his colleagues would like to see Brady paid.

“We are trying to solve this problem. The number just needs to be a reasonable number for Tom’s purchase price. If a fair value says… That 10 percent should be $525 million, then you can’t pay $175 million.

Jim Irsay on Tom Brady’s deal to buy one percent of the Las Vegas Raiders
= Las Vegas Raiders franchise value (Forbes):
$6.2 billion
Reasons d’Irsay opposes the deal This advantage is probably shared by many of their colleagues. NFL owners have no problem with Brady joining their ranks, it might even benefit the league in the long run. However, the financial specifics of the deal pose a significant problem.
It all comes down to money. Even if Brady paid $525 million for a 10 percent stake in the franchise, it would still be a discount compared to what it would cost others to buy the franchise outright. The Raiders are valued at around $6 billion and given the Washington Commanders just sold for a record-setting $6 billion, it’s reasonable to assume Las Vegas’s NFL franchise would go for a similar price.

Be the first to comment

Leave a Reply

Your email address will not be published.


*