Tom Brady in deep talks to become limited partner w/Raiders

[Darbsk]

20 hours ago, raidr4life said:

😁😁😁

Looks like Jim Carey from Dumb and Dumber!!!

[jimkelly02]

13 hours ago, big_palooka said:

Doubtful. The Raiders are valued per Forbes at 5.1 billion. Brady's net worth is reportedly $250 million. A 1% stake in the Raiders would cost over $50 million. 

Brady is rich, but he's not NFL majority owner rich. 

And investing 20% of net worth is a pretty large investment… as he surely has diversified investments.

it seems more like a PR thing then anything serious.

[NickButera]

13 hours ago, jimkelly02 said:

And investing 20% of net worth is a pretty large investment… as he surely has diversified investments.

it seems more like a PR thing then anything serious.

I doubt someone as business and investment savvy did this solely for PR.  There has to be some sort of return he sees in the future. Whether that's banking on the idea that the Las Vegas market and sports teams will only continue to grow in value on their own, or maybe he has some sort of idea to inject a business venture into the NFL (TB12?). As a minority owner now, and being who he is, there's a chance he can create a business and get the NFL to adopt it as officially NFL sponsored, and now he has 32 billion dollar enterprises buying his product/service on an annual basis. 

[Rolni]

On 5/23/2023 at 12:32 PM, big_palooka said:

Doubtful. The Raiders are valued per Forbes at 5.1 billion. Brady's net worth is reportedly $250 million. A 1% stake in the Raiders would cost over $50 million. 

Brady is rich, but he's not NFL majority owner rich. 

Yeah I know, but still I can't really come up with any reason behind this move...

[NYRaider]

He goes the Jordan route and becomes the first owner / player in NFL history.

[jimkelly02]

On 5/24/2023 at 10:03 AM, NickButera said:

I doubt someone as business and investment savvy did this solely for PR.  There has to be some sort of return he sees in the future. Whether that's banking on the idea that the Las Vegas market and sports teams will only continue to grow in value on their own, or maybe he has some sort of idea to inject a business venture into the NFL (TB12?). As a minority owner now, and being who he is, there's a chance he can create a business and get the NFL to adopt it as officially NFL sponsored, and now he has 32 billion dollar enterprises buying his product/service on an annual basis. 

I meant it’s a PR move by the Raiders.  I say that because from a financial situation there’s no reason for Mark Davis to sell a 1% (no figures were announced as far as I know but like BP quickly broke down 50m for 1% sounds like a reasonable investment amount given the teams valuation and Brady’s estimated net worth).  If he needed cash he could easily get a loan with his shares as collateral.  I’ve heard mentions over the years about when Carol finally passed away their would be a Large inheritance/estate tax due (personally I think the idea of taxing inheritance is outright wrong but that’s just my opinion) but I believe the team already has made moves to prepare for that.  Maybe…. And I doubt it… but maybe the 50M Brady would go towards that.  I do imagine the capital gains tax would need to be paid on the selling of Brady’s new share in the company.  Given the increase in value from when Al bought the team to today when Brady bought a certain percent would put the capital gain in the highest rate bracket.  Mark would probably be better from a financial standpoint to taking a loan and using the interest payments to lower the teams yearly revenue and taxes due.

So upon more introspection, “PR move” probably isn’t the the best word or phrase… but it seems to be they’re bringing in Brady because of his value to the team and not for his money investment.   

For Brady the idea behind the investment is even owning 1% of the team is still a solid investment because Franchises grow in value at a rather high rate.  So $50-51M for 1% today with a 5.2B evaluation could very easily be worth 

Forbes NFL team values in 2012:

https://www.forbes.com/pictures/mlm45efhhk/1-dallas-cowboys-2/amp/

Forbes NFL team values in 2022:

https://www.forbes.com/sites/mikeozanian/2022/08/22/nfl-team-values-2022-dallas-cowboys-are-the-first-franchise-worth-8-billion/?sh=c4ab6e363655

We were valued at 5.1B (9th highest value amongst all 32 teams) in ‘22 and 785m in ‘12 (30/32).  That is a 21% annual ROI.  

[jimkelly02]

On 5/24/2023 at 10:30 AM, Rolni said:

Yeah I know, but still I can't really come up with any reason behind this move...

Mark “buying a friend” and someone he admires, lol.

From a financial situation it doesn’t make sense.  Why sell an asset that’s been rapidly increasing in value and expects to continue the pace.  The days of cash flow issues are long gone.  Maybe it’s like when a company hires a CEO to turnaround the company and the compensation is mostly stock instead of salary.  Not that we need a “turnaround” but Brady coming to be a “board member” and help in a leadership role could be viewed as potentially beneficial.

[raidr4life]

3 hours ago, jimkelly02 said:

Mark “buying a friend” and someone he admires, lol.

From a financial situation it doesn’t make sense.  Why sell an asset that’s been rapidly increasing in value and expects to continue the pace.  The days of cash flow issues are long gone.  Maybe it’s like when a company hires a CEO to turnaround the company and the compensation is mostly stock instead of salary.  Not that we need a “turnaround” but Brady coming to be a “board member” and help in a leadership role could be viewed as potentially beneficial.

I heard that heavy taxes are due when Mark Davis mom passes.

[jimkelly02]

8 hours ago, raidr4life said:

I heard that heavy taxes are due when Mark Davis mom passes.

Yeah… but 50mil ain’t a drop in that bucket.  Plus, with the cash flow the team now has it makes more sense to take a loan, with the interest being a deduction against profits, then sell shares and pay a capital gains tax.

i don’t think the tax issue is as big an issue now that we are in Vegas.

I do think it was a valid fear around the time when we were unsure of where we’d play and Mack + Carr + etc had large contracts that required guaranteed money to be put in escrow.  

Edited May 29, 2023 by jimkelly02