With NFL Team Values Soaring, Selling Franchise Shares Is Lucrative Business Strategy For Raiders Owner Mark Davis
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By Alan Snel, LVSportsBiz.com Publisher-Writer
LAS VEGAS, Nevada — Who knew the NFL Raiders franchise value would soar to these heights?
After the NFL Washington franchise sold for a stunning $6.05 billion in 2023, the Raiders have been valued at $7.8 billion by CNBC and $6.8 billion by Forbes magazine.
These are incredible bullish numbers when you consider owner Mark Davis’ father, legendary Al Davis, bought a ten percent share of the Raiders for $18,500 in 1966.
Mark Davis is in the position to retain control of the Raiders even with selling shares of the NFL franchise.
With the team’s valuation appreciating at a steep rate, Davis can garner more than $1 billion by selling shares of the team.
After selling five percent of the team’s value to Tom Brady and another five percent to Brady’s partner, Tom Wagner, plus 0.5 percent to Richard Seymour, Davis unloaded 15 percent of the Raiders in 7.5 percent shares to developer Michael Meldman and Silver Lake co-CEO Egon Durban. The NFL owners are expected to approve the Davis sales to Meldman and Durban.
If you take the Forbes’ Raiders valuation of $6.8 billion, 7.5 percent is $510 million. So the two recent sales of 15 percent by Davis will amount to more than over $1 billion, assuming the Meldman and Durban purchases are approved by the NFL owners this week.
Plus, the combined ten percent sale to Brady and Wagner would be worth $680 million based on the Forbes’ $6.8 billion valuation of the Raiders. That’s a lot of cash.
With the money from all these share sales, Davis would have enough to pay off Southern Nevada’s public debt of more than $1.1 billion on the stadium that opened in 2020. The public contributed $750 million to help the Raiders build the domed, 62,500-seat stadium, but the debt is more than $1 billion because Southern Nevada has to pay interest on the bond repayments.
Other team owners from the Bills, Eagles and Dolphins are also selling pieces of their franchises. And equity firms are now getting involved.
The appreciation of NFL team valuations seems rather recession-proof given the soaring media rights deals being cut by the league.
And owners like Davis are cashing in and making cash.
