BRONCOS ENTER INTO PURCHASE-SALE AGREEMENT WITH WALTON-PENNER FAMILY FOR $4.65 BILLION
The Denver Broncos announced that they had entered into a purchase agreement to sell the team to a group led by Walmart heir, Rob Walton, making Walton the richest owner in the NFL once the deal closes, with a net worth of $62billion.
The deal, worth a whopping $4.65billion, is the most lucrative sports purchase in the history of North American sports and makes David Tepper’s $2.3billion acquisition of the Carolina Panthers in May of 2018 look like a massive bargain. By comparison, Steve Cohen recently completed a $2.475billion purchase of the New York Mets in 2020.
The only deal in the history of sports that topped the Broncos sale was completed a few weeks ago by a group led by LA Dodgers co-owner Todd Boehly in a $5.3billion acquisition of Premier League side Chelsea.
The agreement between the Pat Bowlen Trust and Walton-Penner family is subject to approval from the NFL’s Finance Committee and a ¾ (24) majority of league ownership as well as “the satisfaction of customary closing procedures.”
While there aren’t expected to be any hiccups, the time frame for the closure of the deal in comparison to the latest franchise acquisition in 2018 is expected to be slightly longer. Tepper was a former minority owner of the Pittsburgh Steelers and closed the deal by the second week of July 2018. The Broncos acquisition is expected to be approved and closed in a time period of 60-90 days, with multiple reports confirming end of sale process before the start of the new season in September.
Speaking on behalf of the Walton-Penner family ownership group, former Walmart chairman Rob Walton said: “We are thrilled to be selected to move forward with the purchase of the Denver Broncos! Carrie, Greg and I are inspired by the opportunity to steward this great organization in a vibrant community full of opportunity and passionate fans. Having lived and worked in Colorado, we’ve always admired the Broncos. Our enthusiasm has only grown as we’ve learned more about the team, staff and Broncos Country over the last few months.”
Walton also revealed that Mellody Hobson, who serves as President & Co-CEO of Ariel Investments and Chair of the Board of the Starbucks Cooperation, had agreed to join the ownership group.
“We are excited to announce that Mellody Hobson, Co-CEO of Ariel Investments, has agreed to join our ownership group. Beyond her role at Ariel, Mellody is an influential leader in corporate and civic organizations across the nation. Mellody serves as Chair of the Board of Starbucks Corporation and is also a director of JP Morgan Chase. We know she will bring her strategic acumen and leadership perspective to our team.”
A former Princeton University alumnus, Hobson is a finance savant and was acclaimed in Time’s 2015 Time 100 List as one of the world’s top one hundred most influential people. She serves on the board of several organizations including the Chicago Public Education Fund, the Lucas Museum of Narrative Art, the Sundance Institute, and the investment bank, JP Morgan Chase and Co.
“Thank you to Joe Ellis and the staff of the Broncos for the first-class manner in which they have conducted this sale process,” Walton added. “In addition, we thank Hogan Lovells for their guidance and support in this effort. We look forward to earning the confidence and support of the NFL as we take the next step in this process. When the necessary approval procedures are met, our family is excited to share more with Broncos fans, the organization, and the community.”
In a statement released by the team, Broncos President & CEO, Joe Ellis said: “I have enjoyed getting to know Rob Walton, Carrie Walton Penner, and Greg Penner throughout this process. Learning more about their background and vision for the Denver Broncos, I am confident that their leadership and support will help this team achieve great things on and off the field.”
“I sincerely appreciate the cooperation of our football leadership, executive team, and staff at both UC Health Training Center and Empower Field at Mile High over the last few months and years. We also want to recognize the work of Allen & Company and Proskauer Rose, which have guided us through this process in a timely and efficient manner.”
“While this purchase and sales agreement is pending approval from the NFL’s finance committee and league ownership, today marks a significant step on the path to an exciting new chapter in Broncos history.”
Pat Bowlen purchased the Broncos in 1984 and the franchise went on to win three Super Bowls during his ownership. Bowlen was diagnosed with Alzheimer’s disease and ceded control to Ellis during the summer of 2014. Bowlen’s passing in 2019 brought the Pat Bowlen Trust into assumption of ownership of the franchise. The trust announced in February that it had commenced the process of selling the club. While it has been six years since the Broncos had a winning record, Broncos Country will be hoping that the new ownership will bring stability and continuity to the organization.
The Broncos traded quarterback Drew Lock, tight end Noah Fant, defensive end Shelby Harris, their 2022 first and second-round picks, 2022 fifth-round pick, and 2023 first and second-round picks for Seattle Seahawks quarterback Russell Wilson and a 2022 fourth-round pick, this offseason, in a bid to battle it out in arguably the toughest division in the NFL in the AFC West.
-Maher Abucheri
Twitter: @pabloikonyero