Tom Brady’s bid to buy piece of Raiders hits snag
Tom Brady’s bid to purchase a minority piece of the Raiders is not expected to go to NFL owners for approval next week at the league’s annual meeting in Orlando, Florida.
Brady’s ownership is not currently on the agenda, according to multiple people with knowledge of the situation.
A spokesman for the NFL said Tuesday that “the matter remains under review by the financing committee.”
Brady and Tom Wagner, the co-founder of Knighthead Capital Management, have been discussing with Raiders owner Mark Davis what is believed to be a 10 percent stake in the club for nearly a year. But reservations have been expressed within the NFL’s finance committee about the potential deal.
One possible snag is the price point Davis and Brady are discussing, according to a person with knowledge of the situation.
Selling at a significant discount relative to the Raiders’ $6.2 billion valuation could hurt other owners’ chances of maximizing similar limited partnership sales of their clubs.
Also, when the Raiders, Rams and Chargers received permission to relocate their teams in 2016 and 2017, they agreed to an NFL-mandated flip-tax stipulation in which fellow owners got a piece of the sales prices.
From 2016 until the end of the 2020 season, the fee was 20 percent of the gross sale price. For the 2021 to 2025 seasons, the fee is 10 percent of the gross sale price. For the 2026 to 2035 seasons, the fee decreases by 1 percent each season.
The sales fee money is divided equally among owners, which means they stand to benefit at a higher sales point.
Brady, the former star quarterback who won seven Super Bowls, and the Raiders have been working on an agreeable deal for the finance committee. It was believed that enough progress had been made for the committee to send the proposal to ownership for a vote next week. Approval would require support from 24 of the 32 owners.
Davis did not respond to a request for comment.
Contact Vincent Bonsignore atvbonsignore@reviewjournal.com. Follow @VinnyBonsignore on X.
