Magic Johnson Negotiating for Piece of Las Vegas Raiders: Report
Posted on: October 24, 2022, 11:43h.
Last updated on: October 24, 2022, 12:37h.
Los Angeles Lakers legend Magic Johnson is reportedly negotiating to buy a minority piece of the Las Vegas Raiders – for a record price. According to semafor.com, Johnson has been assembling a team of investors in recent weeks, and the price “could set a new record for sports deals, according to people familiar with the matter.”
News of Johnson’s interest comes after Forbes reported in August that the franchise and owner Mark Davis received an offer from “an unnamed investor” for a minority ownership stake, which had valued the team as being worth $6.5 billion – a price that would surpass recent purchases for ownership of the Denver Broncos and Carolina Panthers.
Forbes noted that minority stakes usually involve about 5% of a sports franchise, which confers no operational say in the team.
The Magic Touch
In 2012, Johnson led a group of investors that purchased the Los Angeles Dodgers, in which he still owns a stake, for $2 billion. Johnson also holds minority stakes in the Los Angeles Sparks of the WNBA, the Los Angeles Football Club of MLS, and esports giant Team Liquid. He held a stake in the Lakers until 2010 and in the Dayton Dragons, a minor league baseball team, until 2014.
That record-setting Broncos purchase mentioned above? Its $4 billion price tag reportedly beat out an offer by an investment group with Johnson’s involvement in May 2022.
In non-sports ventures, Johnson is the majority owner of the EquiTrust Life Insurance Company, and built his reported $620 million net worth with investments in the Starbucks, Pepsi, and Burger King brands.
A History of Raiders Interest
Johnson previously expressed interest in owning a piece of the Raiders a decade ago when the franchise sought taxpayer money in order to build a new stadium in Oakland, Calif. Johnson was linked to a group seeking to bring the team back to LA, where it played from 1982 to 1994. That deal fell through.
Since their move to Las Vegas was announced in 2017, the Raiders jumped from the NFL’s 31st- most valuable team to its ninth. According to Forbes, their valuation increased from $2.1 billion in 2015 to $5.1 billion this year.
Johnson was one of the NBA’s best players, averaging 19.5 points, 7.2 rebounds, and 11.2 assists per game during his 13-year career. The 12-time All-Star also served as the Lakers’ president of basketball operations from 2017 to 2019, championing the push to acquire LeBron James in 2018.
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