The forthcoming meeting of NFL owners on October 17 and 18 may become contentious. According to the Washington Post, Tom Brady’s endeavor to acquire a minority stake in the Las Vegas Raiders may encounter an unforeseen obstacle.
Brady is endeavoring to acquire between 5 and 10 percent of the Raiders’ equity from owner Mark Davis. For months now, Brady’s transition into Vegas ownership felt like a foregone conclusion. It was widely believed to be true, and Brady even attended a Raiders preseason game.
Since complications have emerged, NFL owners are no longer anticipated to approve Brady’s purchase at their meeting this month. There will be future meetings — the next one is scheduled for December — but it is possible that this saga will continue on.
Tom Brady’s acquisition of a Raiders ownership stake is halted.
Brady is believed to be receiving a discount of up to 70 percent from Davis, making the price one of the most contentious issues. It appears Davis also hoped to use Brady’s employment to subsidize the equity he is giving up at such a steep discount. Owners of NFL teams are prohibited from selling minority interests to team employees.
The pending contract between Tom Brady and FOX Sports was cited as a “additional concern,” but it does not appear to be the driving force behind the impending controversy surrounding this month’s voting. If Brady is not authorized, he will have to wait several months for another opportunity, and there is a possibility that the entire deal will collapse. Although we are not privy to the private dialogues between Brady and the Raiders, it appears that the entire deal structure is at risk of collapsing.
