Getty 76ers owner Josh Harris speaks.
On Tuesday, June 7, Rob Walton reached an agreement to buy the Denver Broncos for a whopping $4.65 billion. The sale price was more than double the previous NFL record ($2.275 billion).
It also marked the largest sale for a sports franchise in U.S. history. The previous record was $2.4 billion for the New York Mets in 2020.
However, the price for the Broncos could have been even higher.
According to Pro Football Talk’s Mike Florio, billionaire Josh Harris was willing to pay $5 billion, if he knew that number would get the deal done.
“Per a source with knowledge of the dynamics, 76ers co-owner Josh Harris made it clear to those involved in the process that his group would pay $5 billion for the team, if they knew that $5 billion would get the deal done,” Florio wrote. “However, Harris was not given that assurance.”
Harris was concerned that Walton’s group would continue to outbid him per Florio.
“His concern was that the Walton-Penner group would trump the bid, and would continue to do so until it secured the team.”
In an interesting excerpt, Florio also notes that Harris intends to purchase another NFL franchise.
“Harris, we’re told, intends to pursue another NFL franchise. Thus, there was no reason to drive up the price of the Broncos, when that becomes the precedent for the next transaction.”
When another NFL franchise is up for sale, Harris will likely be a key contender, as he has already displayed a willingness to pay $5 billion to acquire a team.
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Harris Is a Prominent Sports Figure
Harris is a large figure in the sports world. He and David Blitzer are the founders of Harris Blitzer Sports & Entertainment, which owns the Philadelphia 76ers, New Jersey Devils, Delaware Blue Coats, Utica Comets, Dignitas, and Prudential Center.
Harris Blitzer Sports & Entertainment also owns a less than 5% stake in the Pittsburgh Steelers.
Harris has a net worth of $5.6 billion per Forbes.
Harris’s group included NBA legend Earvin “Magic” Johnson per Sportico.
Walton Didn’t Need Partners to Stay Competitive
Walton’s group was not exceedingly large. It consisted of Walton, his son-in-law Greg Penner, daughter Carrie Walton-Penner, and co-CEO of Ariel Investments Mellody Hobson.
In addition, Walton has a staggering net worth of $58 billion per Forbes, so he did not need additional partners to reach the sale price. His partners were only there because Walton wanted them to be a part of the group.
This was a positive to the trustees, according to Mike Klis of 9news.
“However, a big factor in the Pat Bowlen estate trustees and their sales representatives picking the winner is the Walton group didn’t need any partners to get to the $4.5 billion target area — although there will be limited partners to better diversify their group. The other three bidders needed multiple investors to help them stretch to the $4.5 billion area.”
As Klis noted, the other three bidders needed multiple partners to reach $4.5 billion.