NBA icon Magic Johnson is reportedly in talks to become a minority owner of one of the NFL’s most storied franchises, the Las Vegas Raiders.
According to Semafor , Johnson has been assembling a team of investors in recent weeks to build up a bid for a slice of the Raiders in what could set a new record for sports deals. The Raiders is owned by the family of the late Al Davis, who took control of the team in 1966.
The consortium headed by the Hall of Famer has reportedly been conducting due diligence with the team, although a deal is not close to being agreed as negotiations were underway. Back in August, it was reported owner Mark Davis had received an offer for an unnamed investor for a minority stake that valued the Raiders franchise at $6.5 billion (£5.75bn).
Such an enormous valuation would be a record for any professional sports franchise, including the recent deal that saw the Walton Penner Ownership Group - the Walmart heirs - take over the Denver Broncos. The Walton-Penner family and their consortium purchased the three-time Super Bowl champions for a record $4.65bn on August 9.
It wasn't just an NFL record, but a sports record, topping Steve Cohen's $2.4bn purchase of the New York Mets and David Tepper's $2.3bn acquisition of the Carolina Panthers. The deal is not without its complications, though.
The NFL’s strict ownership rules have worked to preserve its tradition of long-term owners – mostly storied families – who have proven to be good stewards of their teams over time. This includes the Rooneys, Maras, and Davis families who have helped invent and reimagine the sport over time.
In the 30 years since he retired as an NBA star, Johnson has masterminded a business empire in both the sport and corporate world. Magic Johnson Enterprises owns everything from a stake in the Los Angeles Dodgers to Burger King and Starbucks franchises, and the man himself has held and interest in owning a piece of the Raiders for sometime.
While Johnson collected five championship rings and three MVP awards, the Raiders starred in the NFL at the LA Coliseum en route to a Super Bowl win in 1984. The 63-year-old flirted with the idea of investing in a bid to bring the Raiders back to LA a few years ago amid turmoil in Oakland, but the move never materialised and the franchise switched to Las Vegas.
The move to Las Vegas has turned out to be a shrewd play for the storied NFL franchise, building an exceptional new stadium and breathing new life into the team.
The NFL would need to approve any sale.
