Broncos are Rob Walton’s to lose (and he still could)

Walmart Holds Annual Multi-Day Shareholders Meeting In Arkansas
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As more in the media seem to be realizing that the Broncos will indeed go for at least $5 billion, the question becomes how high above $5 billion will it be?

The next rounds of bids are due next week. Four groups, as recently identified by Mike Klis of 9News.com, are expected to submit proposals. Ben Fischer of Sports Business Journal reports that bids are expected in the range of $4.5 billion or more.

Eventually, the key word will be “more.”

A league source with knowledge of the dynamics tells PFT that the franchise is WalMart heir Rob Walton’s to lose. But that he could. As the source put it, there are other credible bidders at the table. They have the ability to pay more than $5 billion — if they choose to. The real question is whether Walton will have competition that will inevitably force him to go above $5 billion, and whether that competition will finally drive up the price to the point where Walton bows out.

It’s an auction, plain and simple. The dynamics are the same as they’d be in any other auction. The asset being auctioned isn’t worth whatever the highest bidder is willing to pay, but whatever the highest bidder has to pay.

With the Broncos not having the option to walk away from the table and keep the team, the Pat Bowlen trust has to hope that at least one of the other groups bidding for the Broncos will push Walton to and above $5 billion. That’s why it’s important for the Broncos to have the numbers move gradually, with no one being scared away from the process. If, for example, the three other groups decide right now that they’re not going to pay more than $5 billion under any circumstances, Walton ends up getting it for a lot less.

One group to watch closely will be the faction led by Jose Feliciano. Todd Boehly, who just purchased the Chelsea soccer club for $4.5 billion is part of that effort. Earlier this year, Boehly and Mark Walter bought 27 percent of the L.A. Lakers from Phil Anschutz at an estimated amount of $1.24 billion. That puts the full value of the Lakers at just under $4.6 billion. If, as the source noted, Boehly was willing to acquire a non-controlling stake in the Lakers based on a franchise valuation of $4.6 billion, his group would surely go to $5 billion or more to get full control of the Broncos.

However it plays out, it’s going to be resolved in the coming weeks. And even if the eventual price hits $5.5 billion, the value of the Broncos (an every NFL franchise) will undoubtedly keep going up and up and up in the coming years.

24 responses to “Broncos are Rob Walton’s to lose (and he still could)

  1. Jose Feliciano? I gotta tell you I loved his cover of Light My Fire, but I’m really surprised he made that kind of coin.

  2. Big capital gains event coming from that sale. Uncle Sam and State of Colorado will be pleased.

  3. And to think $5B could lift the 40 million Americans in poverty out of it would that money go to that type of cause (at $125K per person). Wow.

  4. Walton is worth $62B. If he wants to he can easily outbid these other guys combined.

  5. Did anyone actually believe anyone other then Walton was going to own the team? The whole bidding thing was just a charade. He was told a year ago he’s the new Broncos owner.

  6. boozygoose says:
    June 2, 2022 at 10:23 am
    Jose Feliciano? I gotta tell you I loved his cover of Light My Fire, but I’m really surprised he made that kind of coin.
    ——————–
    I thought the very same thing 🙂
    I looked this guy up. Quite impressive. Self made man from Puerto Rico. 49 years old. BS Princeton, MBA Stanford. Co founder of some venture capital fund. Estimated net worth $3.4 billion

  7. cribbage12 says:
    June 2, 2022 at 10:40 am
    And to think $5B could lift the 40 million Americans in poverty out of it would that money go to that type of cause (at $125K per person). Wow.

    —————————-
    I think your math is off just a tad bit, Cribbage12. That would equal out to around 125.00 a person. In todays wonderful economy, that would barely get you a tank full of gas!

  8. Whoever becomes the majority owner needs to pony-up 30% of the sale price. I highly doubt many can or be willing to come up with $1.75billion other than Walton.

  9. he’ll slash operating costs by stripping all fancy labeling and branding. I can hear it now.

    “Welcome, Horse fans! Enjoy the sports activity with a refreshing Dr. Thunder and a delicious Great Value hot dog.”

  10. 5 billion for a bottom of the division team, with an old, vertically challenged(in more then 1 way) qb??? What will they do when the O runs thru Russ and he can’t cook in the high altitude? getting into the boys club just keeps getting more and more expensive, just like prices at walmart are going up to finance this purchase.

  11. If four people have around $20 billion to invest in a football team they might as well swing for the fences, offer higher salaries and equity to poach a few NFL QBs and elite players and roll the dice on their own league.

  12. The owner will also need an additional somewhere getting near $300 million in cash to put in escrow to keep Russ’s and his new fully guaranteed contract on signing (thanks to the Browns). Russ and his baseball agent require Russ to be the highest paid player and must have contract done at least a year before the current one is expired.

  13. So the ‘thanks dad’ Walton guy buys the franchise. Knows nothing about football, but wants to play with his new toy so he gets involved in too many football decisions. I bet this works out great.

  14. stilladolphinfan says:
    June 2, 2022 at 11:32 am
    5 billion for a bottom of the division team, with an old, vertically challenged(in more then 1 way) qb??? What will they do when the O runs thru Russ and he can’t cook in the high altitude? getting into the boys club just keeps getting more and more expensive, just like prices at walmart are going up to finance this purchase.
    _____________

    Allow me to be the one to state what should be the obvious. The value of an NFL franchise has nothing to do with whether the team is currently good or bad on the field.

  15. Sorry Dallas but there is a Wal Mart in all 50 states so by extension they would become….”America’s Team”
    Rob Walton can stroke a check today

  16. Drastic overpay. In 18 months you could get a way better deal. The owners are smart to sell now, but any buyer is paying a premium for slower future growth.

  17. Aaand we assume franchise values will always go up from here??? There’s a whole generation of Tick Tokkers who think Denver Bronco is the name of a clothing line …In 5 years time I see a bust!

  18. inozwetrust says:
    June 2, 2022 at 10:49 am

    boozygoose says:
    June 2, 2022 at 10:23 am
    Jose Feliciano? I gotta tell you I loved his cover of Light My Fire, but I’m really surprised he made that kind of coin.
    ——————–
    I thought the very same thing 🙂
    I looked this guy up. Quite impressive. Self made man from Puerto Rico. 49 years old. BS Princeton, MBA Stanford. Co founder of some venture capital fund. Estimated net worth $3.4 billion

    ===

    There’s no such thing a self-made billionaire, though it’s a flattering illusion that they all fancy themselves with.

  19. So this guy’s sister (or cousin?) is married to the Rams owner.That should be an everyday low price red flag.

  20. For all those making fun of the Walton connection realize it’s good to have an owner with such deep pockets. Besides the other Walton guy just won the Super Bowl

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