The NFL's owners allowed Tom Brady acquire the Raiders piece at a ridiculously low $3.5 billion valuation

Tom Brady, the legendary quarterback, has been officially granted a minority ownership stake in the Oakland Raiders. NFL team owners approved the transaction during their fall business meeting, completing an expected but long-delayed transaction. Brady and his business partner Tom Wagner will gain about a 10% equity stake in the franchise, while his former Patriots teammate Richard Seymour is also part of the transaction. Brady will personally hold about a 5% stake. NFL owners allowed Tom Brady to buy a Raiders piece at a ridiculous low $3.5 billion valuation, according to Ben Fischer of Sports Business Journal.

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Tom Brady bought a piece of the Raiders at a very low valuation

The raw numbers suggest an even lower value. According to Ben Fisher, Tom Brady and Knighthead Capital Management founder Tom Wagner will buy 10% of the Oakland Raiders team, paying $220 million for equity and $24 million in a "flip tax" as a condition of the team's relocation from Oakland in 2020. The deal is valued at $3.5 billion. Brady, who is also the lead color commentator on Fox's biggest NFL games, will be prohibited from attending pregame production meetings and accessing team facilities, players, or coaches.

The NFL initially rejected Brady's bid due to its low equity value, and Colts owner Jim Irsay publicly stated that Brady's proposed price was insufficient. “If reasonable value says . . . that 10 percent should be $525 million, you can’t pay $175 million,” Irsay said at the time. The value of the contract was closer to $175 million than $525 million, but Brady's desire to work for Fox as an NFL game analyst devalued other teams' equity, and his conflict of interest with his Raiders ownership status was evident.

Following the vote, Brady issued a statement thanking his partners and NFL owners for helping to facilitate the deal. “Throughout my NFL career, I’ve learned that at its core, football is a game of teamwork, resilience, and a relentless pursuit of excellence,” he said. “The Raiders franchise, and the city of Las Vegas, embody these same values, and I’m honored to become part of that story.”

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