The Raiders are Las Vegas' NFL team, but it hasn't always been that way.
This NFL franchise used to be Oakland's team in California, but in 2020, after the team's owner, Mark Davis, wasn't allowed to renovate the Oakland Coliseum, he decided to relocate the team to Las Vegas, where it got a new home, Allegiant Stadium.
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Since the big move, the Raiders have only increased in valuation, going from being a low-bottom-half-value team to ranking as the fifth most valuable in the NFL, with a worth of $7.8 billion and a revenue of $780 million in 2023, according to CNBC.
Thanks to its huge fan base, the NFL is the world's most lucrative sports league, with an aggregated value of approximately $163 billion and an estimated annual revenue of over $20 billion.
Because of how popular the American football league has become and the billions of dollars it generates yearly, it is no surprise that many people would want a piece.
Since its inception in 1920, the NFL has been the only North American sports league to prohibit any private equity ownership for its franchises.
However, the league's ownership rules took a complete turn this year after NFL owners voted to change the league's bylaws in August, allowing private equity firms to buy up to a 10% stake in a team.
Tom Brady and the successful NFL career that he refuses to leave behind
Former quarterback Tom Brady is known as one of the greatest NFL players ever, with a long career encompassing 23 seasons.
However, Brady's renowned G-O-A-T title didn't come so easily, as the quarterback had a humble beginning to his career.
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Brady first joined the NFL in 2000 with the New England Patriots as the 199th overall draft pick in the 6th round, but this unfavorable start didn't discourage the player, as he had a successful 20 seasons. Brady then joined the Tampa Bay Buccaneers from 2020 to 2023 for the last three seasons of his career.
The American football star was a true prodigy on the field, holding the NFL record for most wins ever by a quarterback in both the regular season and playoffs.
As for his accolades, Brady has won seven Super Bowls, three league MVP awards, and five Super Bowl MVP awards, the most ever received by a player. He also holds the first unanimous NFL MVP title.
Brady first announced his retirement from the NFL in 2022, only to take it back 40 days later because he couldn't bear to let the sport go. The star quarterback reemerged from retirement for one last season before he officially retired in 2023.
However, with such a star-studded career, Brady couldn't get away from the NFL for too long, as he signed a 10-year broadcasting deal, valued at $375 million, with Fox Sports as a sports commentator starting in the 2024 season.
Tom Brady has a net worth north of $500 million.
Tom Brady purchases stake in the Las Vegas Raiders
On Tuesday, the NFL announced that it had approved Tom Brady as a minority owner of the Las Vegas Raiders.
To get approved by the league, Brady had to find a business partner, which led him to join forces with Tom Wagner, Co-founder of Knighthead Capital Management.
Together, Brady and Wagner hold a 10% minority stake in the Raiders, with Brady owning 5%.
Brady's team purchased the 10% stake at a valuation of $3.5 billion. Brady and Wagner will pay with an equity investment of $200 million plus a 10% "flip tax" that will be distributed to the league's other 31 teams. The total value of the transaction is $220 million.
Brady initially offered to buy the stake in May last year, but the NFL team owners couldn't agree on the purchase price as some deemed it too low.
As NFL investors, both have no say in how the team is run, but Brady has even more restrictions than most owners due to his affiliations.
Commitment to Excellence @Raiders pic.twitter.com/GS0WwHkAtz
— Tom Brady (@TomBrady) October 15, 2024
According to Brady's deals with the NFL and Fox, he is not allowed to attend production meetings virtually or in person, and he is also not permitted to obtain access to the team's facilities, players, and coaches.
When it comes to his commentating job, Brady can't publicly criticize officials or clubs, but he is allowed to broadcast Raiders games, as stated by the NFL's constitution and bylaws.
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As groundbreaking as this acquisition may sound, Brady is not the only former NFL player to invest in the team.
Former defensive lineman Richard Seymour also purchased a less than 1% stake in the Raiders, also at a valuation of $3.5 billion.
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