After 23 seasons as a quarterback and seven Super Bowl championships (six for the New England Patriots and one for the Tampa Bay Buccaneers), Tom Brady is moving on to a new NFL venture: co-owner of the Las Vegas Raiders. Recently, Brady and his business partner Tom Wagner bought a 10% stake in the football team for $220 million, at a valuation of $3.5 billion, according to Mike Ozanian of CNBC Sport.
This week on Yahoo Finance Sports Report, host Joe Pompliano takes a look at Brady’s big deal and breaks down why it’s so unique compared to other minority shareholder acquisitions for sports franchises.
One of the main reasons Brady’s deal differs from the norm is that he got a 50% discount, whereas most people buying equity in minority shares of a team would usually get a 20% to 25% discount. There’s another interesting thing about Brady’s purchase.
Pompliano says, “Raiders owner Mark Davis says that not only is he going to help the team draft a franchise quarterback in the upcoming draft, but he might even help train them.”
Another interesting factor that plays into all of this is Brady’s new role as a Fox Sports broadcaster, which is a paycheck of $37.5 million annually to broadcast NFL games. How will this all net out?
“It’s going to make his job more difficult,” Pompliano says. “But he’s Tom Brady, so he’s going to find a way to work around it.”
Yahoo Finance Sports Report with Joe Pompliano, a vodcast brought to you by Yahoo Finance and Yahoo Sports, looks beyond the latest sports business headlines, analyzes all the need-to-know news – the teams, trades, and billion dollar deals – so you and your portfolio will win BIG.
Yahoo Finance Sports Report is developed and produced by Lauren Pokedoff.