The reason the deal has not been completed is due to price Brady was to pay, believed to be far below market value. Some NFL owners, including the Indianapolis Colts’ Jim Irsay, believed Brady’s original purchase price of $175 million for a 10% stake from Raiders majority owner Mark Davis was unrealistic.
However, as of Thursday, the deal seems to be back on track as Brady’s offer reportedly has been increased to be in proportion to the team’s actual value, Sportico reported. Sportico values the Raiders at $5.77 billion, but Brady’s offer likely is less than a 10% share of that figure ($577 million) because of team debt and the fact that minority stakes often are sold at a discount.
Brady intends to purchase the ownership stake with partner Tom Wagner of Knighthead Capital. It’s unknown how much each party will contribute to the purchase.
Brady’s and Warner’s purchase is expected to be approved at the annual NFL owners meetings on March 24–27. Before that, the NFL’s finance committee will discuss the deal on March 4 or 5.