Vinod Khosla agrees to purchase Seattle Seahawks for $9.6 billion

Tech investor Vinod Khosla has reached an agreement to buy the Seattle Seahawks for $9.6 billion, according to sources familiar with the transaction. The purchase price places the deal among the most valuable control sales of a sports franchise, comparable to the recent $10 billion acquisition of the Los Angeles Lakers.

Khosla, who co-founded Sun Microsystems and leads Khosla Ventures, will acquire the defending Super Bowl champion from the estate of the late owner Paul Allen. The Allen estate confirmed the sale in a statement that included a quotation from Khosla, though details of the financing structure were not disclosed.

The Seahawks were valued at $6.59 billion in the previous year’s Sportico analysis, but the sale price reflects a premium that is typical for NFL franchises, which rarely come to market. The league’s revenue model ensures that each team generates a nine-figure profit annually.

Khosla’s bid outperformed competing offers, including a group led by Aditya Mittal, a member of a prominent Indian business family. Khosla previously acquired a significant stake in the San Francisco 49 ers, and will need to divest that interest if the Seahawks transaction closes.

The NFL imposes strict ownership rules, limiting debt to $1.5 billion and requiring the controlling owner to hold at least 30 percent of equity. Institutional investors may hold up to 10 percent, and the total number of minority owners cannot exceed 24.

Paul Allen’s will directed that his sports assets be sold to support charitable causes. His sister Jody Allen, executor of the estate, has overseen the teams since his death in 2018. The Trail Blazers, another of Allen’s holdings, were recently sold for $4.1 billion.

Legal counsel for the Allen estate was provided by Latham & Watkins.