Walmart heir agrees to buy Denver Broncos American football franchise

Billionaire Rob Walton, the heir to the Walmart retail fortune, has agreed to buy the Denver Broncos American football franchise for a reported sum of $4.6bn, a record for a sports team, as deep-pocketed investors pour cash into the sector.

The US National Football League franchise confirmed the takeover deal on Tuesday in a statement published on its website, with the three-times winner of the Super Bowl set to change hands for the first time in decades.

Walton has a net worth of roughly $58bn, according to Forbes. He is the former chair of Walmart, the US retail group founded by his father, Sam Walton, in 1962.

“We look forward to earning the confidence and support of the NFL as we take the next step in this process,” said Walton. “When the necessary approval procedures are met, our family is excited to share more with Broncos fans, the organisation and the community.”

Walmart chair Greg Penner is also one of the new owners as a member of Walton’s group. He is Walton’s son-in-law through marriage to Carrie Walton Penner, who is also part of the bid.

Mellody Hobson, co-chief executive of Ariel Investments, is another member of the Walton-led group. She chairs coffee shop chain Starbucks and is on the board of banking group JPMorgan Chase.

The Broncos did not disclose financial details. According to the Wall Street Journal and Sportico, the Walton-led group is paying roughly $4.6bn to acquire the team. That price far exceeds the $2.2bn paid by hedge fund manager David Tepper for the Carolina Panthers in 2018.

NFL franchises rarely come up for sale and command the attention of some of the world’s richest people. The league’s appeal is that it is lucrative for owners and the NFL in March 2021 roughly doubled the value of its media rights package with a new deal reportedly worth up to $110bn over 11 years.

The deal is the latest sign that investors are willing to pay billions of dollars for big sports teams, following the acquisition of English Premier League football team Chelsea by US financier Todd Boehly and investment group Clearlake Capital.

The UK government approved the deal last month after sanctioned Russian oligarch Roman Abramovich agreed to sell the west London side. Boehly and Clearlake acquired Chelsea for $2.5bn and committed a further $1.75bn to invest in the club.

Boehly and Clearlake were also linked to the Broncos. Private equity tycoon Josh Harris, who participated in the Chelsea auction, was also said to have shown an interest in the Broncos.

“While this purchase and sale 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,” said Joe Ellis, president and chief executive of the Broncos.

The Walton-Penner family is acquiring the team from the Pat Bowlen Trust. Bowlen had controlled the Broncos since 1984.