Tom Brady owns just 3.3% of Birmingham and has no voting rights – so what does that mean?

Tom Brady owns only 333 ‘B’ shares in Championship club Birmingham City and has no voting rights, filings on Companies House have revealed.

In August, Brady invested in U.S.-based Shelby Companies Limited (SCL) — a subsidiary of Knighthead Capital Management. SCL completed its takeover of Birmingham last summer, purchasing a controlling stake

Shelby Companies is named after the family featured in the BBC’s Birmingham-based period crime drama Peaky Blinders.

It was a tough first season for Birmingham’s new owners. The club have been relegated from the Championship and will play in League One next season.

Tom Wagner, the founder of Knighthood Capital Management, is the club’s ultimate owner and previously bragged about Birmingham becoming the “most talked-about football team in the world” as Brady’s association led to more than 17 billion “positive media impressions”.

Since Brady’s investment was announced in August, little had been said about his financial involvement and now the filings made on Companies House show it is minimal.

The Athletic breaks down exactly how much of Birmingham City Brady owns…

How much of Birmingham City does Tom Brady own?

“There were a few unknowns to his relationship with the club,” explains Kieran Maguire, a football finance expert and lecturer at the University of Liverpool.

“First of all, to what extent had he bought into the club? It looks like it’s just over three per cent. The issue going forward is that he has no voting rights with these shares.

“That makes it a clean break for Knighthead Capital Management should they wish to find a new owner for Birmingham City as they would be able to sell 100 per cent of the voting shares.

“It reinforces the view that Tom Brady’s involvement is that of influencer and celebrity endorsement, which we all thought anyway, rather than a financial investor.”

How much has that cost him?

The filings on Companies House suggest Brady’s 330 ‘B’ shares in Shelby Companies Ltd appear to have cost a total of 3.3 pence, giving each share a face value of 0.01 pence, although there is a chance he could have paid more than that.

There is, however, no indication in the Companies House filing to suggest that is the case.

“His investment would appear to be financially negligible,” explains Maguire. “We don’t know whether he paid a premium for the shares, but I suspect not.

“You would want Tom Brady’s name attached to the club and the benefits that brings in a similar way to Aston Villa posting when Tom Hanks comes to Villa Park.

“It is not a done deal in the sense of the numbers, but it does indicate that Tom Brady’s investment is a non-financial one and he won’t be putting money into the club in the same way Knighthead will be.”

How does that compare to other celebrity sports investors?

Brady is not the first former NFL star to invest in English football. In May 2023, JJ Watt, a former defensive end, became a minority investor in Burnley, who have just been relegated to the Championship having been promoted last year.

Ryan Reynolds and Rob McElhenney have been hugely successful since they bought the entire club in February 2021, overseeing successive promotions into League One, as well as selling their popular Welcome to Wrexham documentary to Disney+. They own 95 per cent of the club in an equal split.

McElhenney and Reynolds still own 95 per cent of Wrexham (Oli Scarff/AFP via Getty Images)

NBA star LeBron James had been involved as a stakeholder in Liverpool since 2011 but exchanged his two per cent shareholding for a one per cent stake in Fenway Sports Group.

Lewis Hamilton, the seven-time Formula One world champion, became a minority shareholder in the NFL’s Denver Broncos when the Walton-Penner family ownership group acquired the franchise in 2022 for $4.65billion.

Why is he involved with the club?

Brady became chairman of a new advisory board, working directly with the board and members of the club’s leadership team.

The statement in August noted how he will be using his experience by helping the sports science department advise on health, nutrition and recovery programmes. They also want him to work closely with the commercial department, seeking new opportunities for Birmingham.

“Tom is both investing and committing his time and extensive expertise,” Wagner said in August. “The goal that Tom has committed to own is to make Birmingham City a respected leader in nutrition, health, wellness, and recovery across the world of football.”

Although these are nice platitudes, as an investor, Brady will want to see a return on the money, no matter how minimal, he put into the club.

What has he said about his role?

In August, Brady called Birmingham an “iconic club with so much history” and that being an investor was a “real honour”.

“Birmingham City is built on teamwork and determination and I’m excited to work alongside the board, management and players to make our second city club second to none,” Brady’s statement read.

“I’ve been part of some amazing teams in my day, and I’m looking forward to applying my perspective to create that same success here in Birmingham.”

When Brady’s investment was announced, Wagner said the 46-year-old was not there for “promotional purposes”.

During Netflix’s Greatest Roast of All Time, a live show where comedians and former team-mates took turns to poke fun at Brady, his investment into Birmingham was raised by Bill Belichick, the former New England Patriots coach.

“I see your soccer team, Birmingham City, got knocked down another tier in the English Football League,” Belichick said.

“For those not familiar with English football and the intricacies of their obscure relegation system, I’ll put it in English for you: they suck.”

Belichick then turned to Brady with a wry smile and said: “Not so easy running a team, is it, Tom?”

How have Birmingham done since his investment?

Given that Birmingham will be playing in League One next season, it is safe to conclude that it has been a difficult first year for Brady.

The American owners decided to sack John Eustace in October when the club were doing relatively well and replaced him with Wayne Rooney, who then oversaw nine defeats in 15 games.

Rooney was sacked on January 2, with Tony Mowbray taking over from Manchester United’s all-time leading goalscorer. The club then had to place Gary Rowett in interim charge in March as Mowbray needed to step away to receive treatment for an unspecified illness.

Birmingham City were relegated to League One this season (Cameron Smith/Getty Images)

Mowbray took a formal leave of medical absence until pre-season.

The owners were widely criticised for sacking Eustace, especially as they had started the season well, and opting for Rooney.

Will Brady’s finances be impacted by Birmingham’s relegation?

Relegation will undoubtedly hit the club’s bottom line, but when you consider his level of investment, Maguire does not believe Birmingham dropping into League One will impact Brady’s bank balance.

“Not a dime,” Maguire responded when asked what relegation cost the former NFL quarterback.

“He is looking for upside benefits and there are no downside risks. They are non-voting shares, so he isn’t involved in the re-investment of infrastructure and the building up of the squad next year.”

What other investments does he have?

Brady has several investments, including ‘TB12’, which is a wellness brand that he launched with his long-time fitness trainer Alex Guerrero in 2013. He co-founded ‘Brady’, a performance sportswear brand in 2021.

The seven-time Super Bowl winner is also a minority investor in the NFL’s Las Vegas Raiders and the WNBA team the Las Vegas Aces, while also investing in the Las Vegas Night Owls, a Major League Pickleball club.

It hasn’t all been plain sailing, though.

According to the New York Times, Brady lost $30million via his investment in FTX, a cryptocurrency exchange company, when they filed for bankruptcy in November 2022.

(Top photo: Cameron Smith/Getty Images)