NBA legend Magic Johnson joins bid in purchasing NFL’s Denver Broncos
The former Los Angeles Lakers legend Magic Johnson is eyeing an additional sports business venture. While this Hall of Fame point guard already partly owns WNBA Sparks and MLB Dodgers, he is now looking to add his sports ownership. Johnson tied up with Philadelphia 76ers co-owner Josh Harris in bidding to buy the Denver Broncos.
NFL team Denver Broncos was currently under ownership by the Bowlen family, which owned Broncos for 38 years. The family is now selling the team this offseason. Denver Broncos is already up for sale since Feb. 1. Patrick D. Bowlen Trust had placed the selling as an estate sale.
Under this estate sale process, the trustees concerned are tied with a fiduciary duty to accept the bid in the trust’s best interest.
The trustees of the Bowlen family are the ones responsible for carrying out the fiduciary tasks to the beneficiaries of the trust. Who happens to be Bowlen’s seven children. They should also acknowledge the complexion of all the bidding parties.
Magic Johnson is reportedly joining a bid group for the Denver Broncos, per @Sportico. pic.twitter.com/Nyf8RZ6H2X
— NFL on CBS 🏈 (@NFLonCBS) May 5, 2022
Executive chairman at Herrick in Ne York and co-chair of the company’s sports law group spoke in a statement. “Magic Johnson, in addition to being African-American, also is a brilliant businessman and knows about professional sports organization from the inside and the outside.”
Magic Johnson, now 62, is also currently a part-owner of two sports teams. With Johnson’s part as owner, the Dodgers finished their more than 30 years of Work Series title scarcity in 2020. Moreover, four years before that, the WNBA Sparks achieved their third championship title in 2002.
In addition, Johnson was also the Los Angeles Lakers’ president for two years. He is also responsible for Jame Lebron’s recruitment to the team in 2020.
Forbes placed the Broncos’ value at $3.75 billion last August, which could mean that the team’s franchise might be for sale at $4 billion.
Broncos president and CEO Joe Ellis said, “Selling an NFL team is a complex process involving numerous parties and league approval procedures.”
With a net worth of $600M+, Magic Johnson has built an empire of investments, including:
➖ LAFC
➖ LA Lakers
➖ LA Sparks
➖ LA Dodgers
➖ Starbucks
➖ Burger King
➖ 24HR Fitness
➖ Square
➖ Uncharted Power
➖ CameoNow, he could become part-owner of the Denver Broncos. pic.twitter.com/lJKTC0dQEx
— Front Office Sports (@FOS) May 5, 2022
He added, “Nonetheless, the trustees hope to have the sale completed by the start of the NFL 2022 NFL season. The Broncos are a special franchise that is part of the fabric of this region. Whoever emerges as the new owner will certainly understand what the team means to our great fans and this community.”
The Broncos have a busy season alongside its impending sale. Broncos changed their head coach to Packers’ coordinator Nathaniel Hackett. On top of this, the team also managed to pull off one of the biggest trades this offseason. They acquired quarterback Russell Wilson. He was the one who assisted his former team Seahawks, to their first Super Bowl championship back in 2013.
In addition, NFL Commissioner Roger Goodell also commented about the team’s sale. “We would love to see a diverse owner of the team, whether a person of color, a female, or a Black man. We think that it would be a positive step for us. It is something encouraging.”
However, the NFL league denied commenting on the impact of Johnson’s involvement and the overall process. Allen & Company is the firm handling Broncos’ sales. Johnson’s party and attorneys of trustees also declined any comment.
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One thing that everyone’s curious about is how much capital Johnson is willing to shell out for this purchase. In his 2012 purchase of the Los Angeles Dodgers, he spent $50 million. Then he sold it to Guggenheim Baseball Management for $2.15 billion.
In short, Johnson would not capitalize on a purchase that he won’t be earning after a few years. Ten years from now, the Broncos can be worth double their asking price or even more than that. Now that they are selling for $4.5 billion, a $50 million capital means just a 1% stake. To level it with the 2.3 % stake Johnson had put up with the Dodgers; he should commit at least $105 million.
Magic Johnson’s addition to this Harris bid is at excellent timing. Considering that the Harris group is the first of the groups to do planned visits and spend time in Denver this month.
Moreover, if the Harris group managed to pull this through, Magic Johnson’s impact on sports and his role in the team would be critical. Johnson may as well affect the terms of fighting the lack of diversity in the NFL.
