First Football, the largest minority shareholder in the NFL's Las Vegas Raiders, is selling its 25% stake in the team to a group led by Egon Durban at a $9.9 billion valuation, according to a person familiar with the deal, who asked not to be named because they are not authorized to speak about the private transaction publicly.
The First Football group bought 20% of the Raiders from Al Davis, the father of current owner Mark Davis, in 2007 and subsequently added 5% more of the team at a weighted average valuation of around $700 million, according to two people with knowledge of the deal. The people asked not to be named because the matter is private.
The deal is subject to league approval at the NFL owners meeting next week. The total consideration of the transaction is $11 billion, 10% of which is a sales tax, or "flip tax," that must be paid to the league and is then shared by the other 31 teams, making the enterprise value of the deal $9.9 billion, according to the people with knowledge of the deal.
As CNBC has previously reported, as part of the relocation agreement between the Raiders and the NFL when the team moved from Oakland, California, to Las Vegas in 2020, anyone who buys a piece of the Raiders through March 2037 must pay the league a percentage of the purchase price.
