Seahawks Sold for Record $9.6 Billion to Khosla Family
Theo Al Jazeera English
NFL owners have approved the sale of the Seattle Seahawks to the Khosla family for $9.6 billion, a record for the league. The deal follows the wishes of the late Paul Allen and marks the second-highest valuation in North American sports history.
NFL owners have unanimously approved the sale of the Seattle Seahawks to a group led by the Khosla family for $9.6 billion, a record price in league history.
The agreement was announced on July 11 and received approval at a special owners meeting in Atlanta on Wednesday (August 26). The sale follows the wishes of the late owner Paul Allen, who passed away in 2018.
At least 24 of the 32 owner votes were required for approval. Prior to the vote, the NFL's finance and ownership policy committees had unanimously recommended ratification.
“How often do you get a chance to buy a team that just won the Super Bowl?” billionaire Vinod Khosla, head of the purchasing group, said beside his wife Neeru and son Neal. “We are fortunate and humbled by this gift from the Allen Trust.”
“The task ahead is quite simple,” Vinod Khosla said after the vote. “Keep the winning streak. Get another Super Bowl. That's simple. Overall, our approach is long-term. So, keep winning, have a long-term view, and learn a lot.”
The estate of Paul G. Allen, who inherited the team after his death, reached an agreement with the Khosla family after a search for new ownership. Allen's will stipulated that the team be sold and the proceeds distributed to charitable organizations.
The $9.6 billion price is a record for an NFL team sale and the second-highest valuation in North American sports history. The Los Angeles Lakers were sold for $10 billion last year and have recently been valued at $12.5 billion as Bob Iger and Josh Kushner plan to buy controlling stakes from Mark Walter.
The Washington Commanders were sold to Josh Harris's group for about $6 billion in 2023.
Paul Allen bought the Seahawks for $194 million from Ken Behring in 1997, keeping the team in Seattle. Allen, co-founder of Microsoft, also owned the Portland Trail Blazers, with his sister Jody Allen serving as the estate's owner.
Vinod Khosla thanked Jody Allen and the Allen Trust “for entrusting us with this team.”
NFL Commissioner Roger Goodell said the Khosla family's experience with the San Francisco 49ers was appealing to other owners. “They know our league very well,” Goodell said. “They were owners of the San Francisco 49ers in the NFC West. They understand the passion of the NFL, the Seattle community, and the league. That made this deal particularly attractive to all of us.”
Who is Vinod Khosla?
Vinod Khosla, 71, is a venture capitalist and a limited partner of the San Francisco 49ers. He bought a 3.1% stake in the team last year at a valuation of over $8.5 billion, according to ESPN.
He will have to divest his stake in the 49ers as part of the Seahawks purchase, with the deal possibly closing before the defending Super Bowl champions open the season on September 9 against the New England Patriots, whom they defeated 29-13 in February's final.
Khosla, born in Pune, India, co-founded Sun Microsystems and founded venture capital firm Khosla Ventures. Neeru Khosla, also born in India and who met Vinod as a child, will be the controlling owner, according to The Athletic. Their son, Neal, is expected to play a significant role in the organization.
Vinod Khosla said he was originally a Pittsburgh Steelers fan when he moved to the U.S. in 1976. “We’ve been passionate about football for a long time,” he said. “We’ve been going to 49ers games since Neal was 5, about half the home games since then. Football is definitely a passion. I was a big Steelers fan and still watch all their games.”
