John Elway’s family may want to give him a little space for the next few days/weeks/months. Maybe get him a therapy dog or sign him up for Talk Space. Disconnect wifi and unplug the cable. All it takes is to take his mind off the fact that an $800 million payday is officially about to slip through his fingers.
This story is familiar to regular Celebrity Net Worth readers, but just in case the following is a brief summary:
John Elway played for the Denver Broncos throughout his career, during which time he threw in excess of 50,000 yards, with exactly 300 touchdown passes, and nine Pro Bowl and Super Bowl championships.
Back in 1998, his final NFL season, team owner Pat Pullen came to John with a show. At the time, John owed $21 million in deferred salary (similar to Bobby Bonilla). Bowlen’s offer was simple:
- #1: John could buy 10% of the team for $15 million.
- #2: John might get another 10% if he agrees to forgo his $21 million deferred salary.
In other words, for a total of $36 million (with only $15 million out of his bank on day one), John Elway could have bought 20% of the Broncos. At this level, Bowlen was offering 20% of the Broncos for a total valuation of $180 million.
As if the offer wasn’t generous enough, Pat gave John a 100% risk-free insurance policy. If John wanted out after five years, he could sell his stake back to Bowlen for the purchase price plus $5 million. So not only is he risk-free, but he gets literally $5 million if he changes his mind.
And in case you were wondering if Elway could save $15 million in 1998, at that point he earned $50 million in NFL salary, about $20 million in endorsements, and just a year earlier he sold his John Elway Autos franchise. for $82.5 million.
Up to $15 million for a risk-free chance to own 20% of an NFL team. What did John decide?
to reject. Today, it is officially a very shocking decision…
Bowlen Trust cashed
Pat Pullen, owner of Bronco Corporation, passed away on June 13, 2019 at the age of 75. Upon his death, ownership of the Broncos was transferred to his seven children in equal parts.
Unfortunately, family owned businesses can be a hornet’s nest. Especially when no one has a majority ownership stake to make the final decisions.
The Bowlen heirs reportedly struggled for two years over key franchise decisions. In the end, they agreed on one thing: it was time to cash in.
In March of this year, the Bowlen Trust announced it was seeking bids to buy the Broncos. Today, the winner has been chosen.
Earlier this morning, it was revealed that the Bowlen Trust reached an agreement with Walmart heir Rob Walton to sell the Broncos for…
Not beating the Bronco is dead, but remember that John Elway was offered a 20% buyout opportunity with a team valuation of $180 million. In other words, it cost him John Elway’s decision today not to formally accept Pat Pullen’s offer…
As if that wasn’t painful enough, there’s more pain in this story for John Elway. Instead of buying 20% of the Broncos, John ended up taking the same amount of the down payment, $15 million, and investing it in what eventually turned out to be a $150 million Ponzi scheme. Not only did John get no return on his $15 million, he lost just over half of his investment.
So basically, instead of taking the $15 million and turning it into $900 million, John took the $15 million and turned it into $7 million
Now you understand why the Jun family would like to give him some space for the next few weeks/months/years
Walmart NFL Teams
Fun fact – with Rob Walton’s purchase of the Broncos, two NFL teams now belong to the extended Walmart family.
Rob is the son of Sam Walton, the core founder of Walmart. Most people have heard of Sam Walton. Most people don’t realize that Sam’s younger brother, Bud Walton, co-founded the retail empire.
Budd had two daughters: Anne and Nancy.
In 1974, Ann Walton married Stan Kroenke.
Using seed money from Anne, Stan built his own commercial real estate empire. In 1995, Stan bought 30% of the Los Angeles Rams and coordinated the team’s move to St. Louis. In 2010 he became the 100% owner of the team. In 2017, Rams moved to Los Angeles.
So it’s a good day to be a member of the Walton family (when is it a bad day?) and a not so fun day to be a member of the Elway family.