The NFL team, now known as the Las Vegas Raiders, was originally based in Oakland, California. The relocation occurred in 2020 following a decision by team owner Mark Davis, who opted to move after being unable to secure permission to renovate the Oakland Coliseum. The team found its new home at Allegiant Stadium in Las Vegas.
Since relocating, the Raiders have seen a significant increase in valuation, ascending from a lower-valued team to become the fifth most valuable franchise in the NFL. The team is now valued at $7.8 billion, generating $780 million in revenue for 2023, as reported by CNBC.
The NFL, renowned for its expansive fan base, stands as the world’s most profitable sports league, boasting an aggregate value of about $163 billion and an estimated $20 billion in annual revenue. Given the league’s financial success, interest in ownership stakes is high.
For decades, the NFL prohibited private equity ownership of its franchises since its establishment in 1920. However, the league’s rules shifted dramatically this year when NFL owners voted in August to amend the bylaws, now allowing private equity firms to acquire up to a 10% stake in teams.
Former NFL quarterback Tom Brady, regarded as one of the sport’s greatest players, had a distinguished career spanning 23 seasons. His journey began modestly in 2000 when he joined the New England Patriots as the 199th overall draft pick in the sixth round. Undeterred by this starting position, Brady achieved remarkable success over 20 seasons with the Patriots before playing his final three seasons with the Tampa Bay Buccaneers from 2020 to 2023.
Brady’s record includes most wins by a quarterback in both the regular season and playoffs, alongside seven Super Bowl victories, three league MVP awards, and five Super Bowl MVPs. Initially announcing retirement in 2022, Brady reversed his decision after 40 days for one more season, finally retiring in 2023. Despite stepping away from playing, Brady transitioned into a sports commentator role with Fox Sports, beginning in 2024 under a $375 million, 10-year contract.
In a recent development, the NFL approved Tom Brady’s minority ownership bid in the Las Vegas Raiders. Brady partnered with Tom Wagner, co-founder of Knighthead Capital Management, securing a 10% minority stake in the team, with Brady holding a 5% share.
The acquisition valued the franchise stake at $3.5 billion, involving an equity investment of $200 million and a 10% “flip tax” distributed to the league’s other 31 teams, bringing the total transaction value to $220 million. Initial offers from Brady in the previous year stalled due to price disagreements among NFL team owners.
As minority stakeholders, Brady and Wagner have no operational control over the team, and Brady’s role is further restricted due to his broadcasting affiliations. NFL rules prevent Brady from attending team meetings or accessing official facilities, players, and coaches. Additionally, while Brady is restricted from criticizing teams or officials publicly, he can still commentate on Raiders games under the league’s constitution and bylaws.
Brady is not the first former NFL player to invest in the Raiders, as former defensive lineman Richard Seymour also owns a less than 1% stake at the same franchise valuation.