Tom Brady: From the NFL Field to the Executive Suite

Tom Brady, the legendary NFL quarterback, is well on his way to joining the exclusive circle of league owners. In a formal step, his investment in the Las Vegas Raiders was unanimously approved by the NFL owners. Together with Tom Wagner, co-founder of Knighthead Capital, Brady plans to acquire a 10 percent stake in the team. This decision met with widespread approval—all 32 votes from the owners' meeting in Atlanta supported it. The initial agreement between Brady and Wagner was reached in May 2023. However, the deal was originally delayed due to the purchase price and other concerns from the league. Several adjustments in the financial structure eventually led to an agreement that received the green light from the NFL. Originally, Brady was to receive around 7% of the shares; his stake now amounts to about 5%. Should the deal be finalized, Brady will join the ranks of former NFL players who later acquired significant ownership in NFL teams. Established figures such as George Halas of the Chicago Bears and Jerry Richardson of the Carolina Panthers have taken this path before him. Former players like Warrick Dunn (Falcons) and John Stallworth (Steelers) have also held team stakes. The contact between Brady and Raiders owner Mark Davis dates back to 2022, but discussions initially stalled when Brady returned to the field for another season, as active players are not allowed to hold team stakes. The discussions resumed in 2023 after Brady announced his final retirement. The initial agreement proved controversial, particularly the price, which many considered too favorable. This led to an adjustment of the valuation to align with another transaction with existing investors in 2023. Brady is strategically acquiring a special class of shares known as RLP shares, which provided him with an advantage. These shares are exempt from the right of first refusal by other investors, which seems to be a strategic move, as other shareholders might otherwise have considered the purchase price. Brady and Wagner, who met through their children's friendship at school, have already invested in various sports projects, including Birmingham City in English football. Among Brady's other investments is a minority stake in the Las Vegas Aces in the WNBA, also under the control of owner Mark Davis.