Report: The 49ers Agree to Sell 6 Percent of their Franchise

Great timing.

Dec 30, 2024; Santa Clara, California, USA; San Francisco 49ers chief executive officer Jed York during the game against the Detroit Lions at Levi's Stadium. Mandatory Credit: Sergio Estrada-Imagn Images | Sergio Estrada-Imagn Images

Great timing.

The 49ers just agreed to sell roughly a 6 percent stake of their franchise which has been valued at a little more than $8.5 billion according to reports. This deal will create more than half a billion dollars for the 49ers owners.

Suddenly, the 49ers have more than enough cash to extend Brock Purdy's contract.

In the NFL, when a team signs a player, that team has to put that player's guaranteed money into an escrow account. Purdy's extension most likely will contain roughly $160 million in total guarantees. That's a lot of cash.

And the 49ers probably didn't have much liquidity before selling this stake in their franchise considering they also own two soccer teams -- Leeds United and Rangers FC. And those teams are expensive to run and maintain.

Now, if the 49ers and Purdy have agreed upon the terms of his deal, they actually can finalize it. This will be the most lucrative contract the 49ers ever have given to a player. They've never had to put this much money into an escrow account at one time before.

It seems more and more likely as time progresses that Purdy and the 49ers will announce an extension soon, perhaps as soon as OTAs in two weeks. Purdy recently showed up to Phase 1 which was an indication that he and the 49ers aren't far apart.

The 49ers could have sold this six percent stake three months ago before free agency started. Instead, they waited until mid-May. I think it's safe to assume this has everything to do with Purdy.