Discounted Price Reportedly Stalling Tom Brady’s Raiders Stake
NFL executives reportedly hope a "compromise" can be reached
The process of Tom Brady becoming a part-owner of the Las Vegas Raiders has yet to be finalized, and it might have to do with the special perks the former New England Patriots quarterback received in the deal.
One reason the deal has not been finalized is “because of concerns by the league’s finance committee about the discounted price,” according to the Washington Post on Thursday.
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There is support from league owners for the deal, but the sources told the Washington Post it’s unlikely to happen at the offer principal owner Mark Davis set. There has not been traction on whether or not Brady and Davis revised their deal, but a compromise likely will be needed for it to be approved.
“A second person with knowledge of the deliberations said approval of the deal is hung up over several issues, including the discounted price,” the Washinton Post wrote. “Those two people and a third person familiar with the process said that, barring a last-minute change, NFL team owners are not expected to ratify Brady’s deal to become a Raiders part-owner at their meeting scheduled for Oct. 17-18 in New York.”
The deal would need to be approved by 24 of the 32 owners.
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The details of the deal are unknown. The Raiders are valued at $6.2 billion, according to Forbes.
“It is believed that Davis is selling Brady between (five) and 10 percent of the Raiders,” the Washington Post wrote. “Minority shares of a sports franchise generally are sold at a discount from the applicable percentage of the team’s full value, given that limited partners in the franchise usually have little to no say over major operational decisions. But in this case, Davis may be giving Brady a discount of as much as approximately 70 percent, one of the people with knowledge of the deliberations said.”
Brady acquired an ownership stake in the Las Vegas Aces, which is owned by Davis. And Brady is an investor in English Championship side Birmingham City FC.
The next opportunity to get the deal approved would be Dec. 12-13 in Irving, Texas.
