Rumors have been circulating recently about a potential deal between Tom Brady and Mark Davis, the owner of the Las Vegas Raiders.
Reports suggest that Brady is looking to buy 5-10 percent of the team, but the NFL is yet to give its approval.
So what’s causing the delay?
Well, it seems that the proposed purchase price is the main sticking point.
Tom Brady and Mark Davis have a deal in place for Brady to buy 5-10 percent of the Raiders. The NFL has yet to approve it. The problem seems to be the proposed purchase price being too low. https://t.co/Ly4AVlBlio
— ProFootballTalk (@ProFootballTalk) October 19, 2023
The Washington Post recently reported that no action was expected on the deal.
However, this comes as a surprise, considering the close relationship between Brady and Davis.
Meanwhile, there are several reasons why the NFL might be hesitant to give the green light.
Firstly, there’s a new rule in place that prohibits the giving of equity to employees. Davis actually spoke out against this rule when it was adopted.
It’s possible that this rule is now affecting his ability to sell a stake of the team to Brady.
Secondly, Brady is set to embark on a broadcasting career with Fox, which could potentially create a conflict of interest if he becomes the partial owner of a team.
The NFL might be concerned about the impact this could have on the impartiality of Brady’s commentary.
Finally, there’s the issue of the purchase price.
It’s rumored that Davis has offered Brady a significant discount of up to 70 percent off the market price.
Other NFL owners could view this as devaluing the equity in the franchise. If Brady gets such a good deal, other owners might struggle to sell their own shares at a fair price.
Indianapolis Colts owner Jim Irsay recently weighed in on the matter, stating that the purchase price needs to be reasonable.
This suggests that other owners are paying close attention to the potential deal between Brady and Davis.
This issue also ties back to a previous debate regarding the giving of equity to employees.
The NFL has made it clear that they want to prevent antitrust violations, ensuring that owners have full control over their businesses.
While Davis might feel restricted by these rules, it’s unlikely that he would take the matter to court.
However, if any owner were to challenge the league on antitrust grounds, it wouldn’t be surprising if it were Davis, given his father’s history of similar lawsuits.
