Brian Davis

Latest On Sale Of Commanders

June 4th, 2023 at 9:53pm CST by Ely Allen

We had a couple of recent updates to the situation around the sale of the Commanders from Dan Snyder to Josh Harris this week. We were provided with a peek into the thoughts of the owners on one of the factors holding up the sale, as well as an update into the Brian Davis lawsuit.

The sale has been stalled lately in part due to some concerns over current requirements for franchise sales, specifically the requirement that a prospective primary owner must be able to furnish 30 percent of the total sales price in cash at the time of the purchase. There’s been some recent speculation that, due to the skyrocketing price tags on franchises, the league may rethink this stipulation. The practice was much more sensible years ago, when the Panthers sold for around $2.28 billion, but with the Commanders’ bids breaching $6 billion, the 30 percent requirement is much more difficult to manage.

According to Albert Breer of Sports Illustrated, it doesn’t sound like the current owners care. Breer reports that none of the owners he spoke with had an “appetite for changing the rule.” The owners currently believe that Harris will come up with the cash necessary and, if he does, the issue will be pushed down the road.

It could be pushed two sales down the road if the Seahawks are next on the chopping block. If presumed bidders Steve Ballmer or Jeff Bezos end up with winning bids, they likely wouldn’t have any trouble coming up with the cash. That should be a non-issue, though, as chairman of the team’s ownership group Jody Allen has confirmed that the team is still not for sale, according to Rachel Bachman of The Wall Street Journal.

In unrelated news, gaming law and sports betting attorney Daniel Wallach provided the update that Davis’s lawsuit against Bank of America has been withdrawn. Davis’s company, Urban Echo Energy, sued Bank of America claiming that they failed to present his bid to buy the Commanders to the responsible parties. Bank of America came back with allegations that the documents provided as proof of the transfer looked obviously fictitious.

It sounded like the case may reach a negotiated settlement, but with the allegedly fictitious documents in hand, it sounds like Bank of America may have earned an upper hand. The demand for the lawsuit, originally a ludicrous $500 billion, already was dropped to $990K. Bank of America did not join Urban Echo Energy in the filing of the withdrawal, so it’s unclear what the steps are moving forward. It sounds like Davis’s attorney may potentially face sanctions if the documents and claims are deemed fictitious, but in the meantime, Davis’s involvement in the sale of the Commanders has likely come to an end.

Latest On Brian Davis’s Commanders Bid

May 28th, 2023 at 6:23pm CST by Ely Allen

For a moment about a month and a half ago, the snag in the Commanders sale from Dan Snyder to Josh Harris had nothing to do with the source of Harris’s funds or awaiting a vote for ownership approval. Back then the snag in the deal was another bidder as Brian Davis offered up a $7 billion bid.

Davis is a D.C. native and a former star for the Duke Blue Devils basketball team, winning two national championships alongside Christian Laettner in the early-1990s. The two remained close friends and eventually pursued a few sports ventures together. They have businesses in real estate development and founded D.C. United Holdings, a holding company that controls the operating rights to the MLS team D.C. United.

Davis entering in a bid nearly $1 billion over Harris’s may have some wondering why Davis isn’t the presumed future owner of the franchise, but questions were almost immediately raised about Davis’s bid. Primarily, while Davis asserted a $7.1 billion bid, the firm tapped to handle the sale of the Commanders never considered the bid to be legitimate. Davis alleges that the reason for this lies with Bank of America, leading to a current lawsuit between Davis’s company Urban Echo Energy and Bank of America.

According to Mike Florio of NBC Sports, the lawsuits “claims that Bank of America failed to present the $7.1 billion bid to outgoing owner Daniel Snyder and that, if Bank of America had done so, Snyder would have accepted it.” According to Davis’s company’s attorneys, Davis deposited $5.1 billion for the transaction as a proof of funds in two separate transfers. In the court filings, the team included “images of two alleged copies of the bank drafts,” according to A.J. Perez of Front Office Sports. The attorneys allege that “upon information and belief, (Bank of America) never made the Snyders aware of the existence of the bank drafts.”

Pending the first court hearing tomorrow, Bank of America told the appointed judge that the documents they have in their possession raised “considerable concerns about their genuineness,” claiming that the documents look “fictitious,” according to Daniel Wallach of The Athletic. If Bank of America truly had doubts about the legitimacy of Davis’s transfer documents, it stands to reason that they were unwilling to back his bid for the sale.

On the other side of things, with the Harris deal, progress reportedly continues to be made towards an eventual sale and approval by the NFL. According to Nicki Jhabvala and Mark Maske of The Washington Post, until the deal is ratified by the league’s team owners, Harris “cannot have any role in team operations.” Harris’s group is actively working though the approval process with the league, and discussions appear to be productive.

Josh Harris Raises Bid For Commanders; Brian Davis Still In Play

April 16th, 2023 at 12:41pm CST by Sam Robinson

APRIL 16: The fact that Snyder’s agreement with Harris is a non-exclusive one could be a factor as the sale of the Commanders nears its conclusion. Per Darren Haynes, Laura Wainman, and Erin Spaht of WUSA9, Washington, D.C. native Brian Davis has made a $7 billion cash bid to purchase the club. Davis would become the NFL’s first Black owner if his bid were to accepted.

The WUSA9 trio add that Davis is willing to indemnify Snyder — meaning he would assume any legal liability stemming from the investigations currently surrounding Snyder — and would pay the first $1 billion within 24 hours. The remaining $6 billion would be paid out within a week.

It is easy to see the appeal of such a proposal, and as of Thursday evening, Bank of America — which is handling the the sale offers — was still in communication with Davis.

APRIL 13, 7:15pm: The finish line appears in sight as Snyder has reportedly reached an agreement with Harris’ group to sell the team for $6.05 billion, according to Rapoport of NFL Network. Rapoport tempers the excitement a bit by pointing out that the agreement is not exclusive, meaning another bidder could theoretically still come in and bid higher for the franchise. The deal has been agreed to but is not yet official. Barring any snags in the process, however, Harris is expected to become the next owner of the Washington Commanders.

2:58pm: Harris looks to have increased his offer. The NBA and NHL owner submitted a $6.05 billion bid for the Commanders, Rapoport reports (on Twitter). This is expected to be the winning bid for the franchise. No papers have been signed just yet, and Adam Schefter of ESPN.com reports (via Twitter) Apostopoloulos is not completely out of the running. But Harris appears on the cusp of buying the team from Snyder.

This can be classified as a preliminary agreement, according to the Washington Post, and the Commanders are close to becoming the first American sports franchise to sell for more than $5 billion. This approximately $6 billion price will smash the record the Broncos set last year. Walton’s Denver offer obliterated the previous NFL record; Harris’ bid will be worth nearly triple what Tepper paid to acquire the Panthers in 2018.

12:48pm: Apostolopoulos has not bowed out of the pursuit yet. The Canadian billionaire real estate developer is believed to be in a “head-to-head race” with Harris, according to ESPN.com’s John Keim. Apostolopoulos joined Harris, Houston Rockets owner Tillman Fertitta and an anonymous group in bidding on the team.

Citing a recent Forbes valuation, Fertitta bid $5.6 billion as well, Jhabvala adds (Twitter link). Harris is not planning to increase his bid, and Fertitta does not sound like he will move much higher. No NFL vote on either Harris or Apostolopoulos will likely be held, per Keim, until the next round of owners’ meetings, which are set for May 22-24 in Minneapolis. But it does not appear the Commanders’ next owner is known just yet.

12:15pm: Less than 24 hours after reports indicated Jeff Bezos did not plan to bid on the Commanders, a sale is near the finish line. Josh Harris and Dan Snyder are nearing an agreement, Ian Rapoport of NFL.com reports (on Twitter).

Harris, who owns the Philadelphia 76ers and New Jersey Devils, bid $5.6 billion for the franchise, Mark Maske and Nicki Jhabvala of the Washington Post report. No terms have been submitted to the league, and Harris’ prospective purchase will still need to be approved by at least 24 NFL owners. Snyder has not informed the NFL he is selling just yet, but Maske adds (via Twitter) the hope is an agreement will be reached in the coming weeks. The approval part of a deal is expected to be a formality, with Harris having been vetted during his run at buying the Broncos last year.

This process, which began late last year when Snyder hired a firm to explore selling the team after 23 years as owner, looks to be close to the goal line. Sportico reports Snyder and Harris have agreed in principle (Twitter link). Harris’ ownership group includes NBA legend Magic Johnson and billionaire Mitchell Rales.

Snyder, 58, bought the franchise in 1999 for $800MM. Snyder’s ownership tenure has been roundly criticized, and scandals have engulfed him for years. The repeated investigations into workplace misconduct and financial impropriety moved a possible vote to remove Snyder from his post onto the radar. A sale, however, has always been the NFL’s preferred outcome. No owner has ever been voted out. Instead, Snyder looks to be stepping away on his own. Further pointing to an NFL exit, Dan and Tanya Snyder have since named England as their usual place of residence.

The embattled owner had insisted for years he would never sell the team. But investigations — including two by the NFL and one by the House Oversight Committee — overshadowed the final years of his tenure. A 2022 ESPN report that indicated Snyder had hired firms to collect dirt on some of his fellow owners, along with Roger Goodell, emerged just before sale rumors began. Snyder denied having done so, but sale rumors surfaced shortly after that denial.

Mary Jo White’s investigation is ongoing, but that probe — one that will lead to a written report of the findings, as opposed to the 2021 investigation which did not produce a report — is believed to be nearing a conclusion. Snyder, whom the NFL fined and handed a de facto suspension at the end of its initial probe, had previously demanded indemnification to protect him against further repercussions. Owners have shot down that demand.

From 1972-91, Washington appeared in five Super Bowls and won three. During Snyder’s ownership, the team has never advanced to the playoffs in consecutive years and has won 10 games in a season only three times. Snyder’s ownership tenure has never produced more than 10 wins in a season. Front office, coaching and quarterback instability have plagued the team. Should Harris indeed take over, his restoration task will dwarf the ones David Tepper or Rob Walton needed to complete.

Walton outbid Harris for the Broncos, but the latter remained on the ownership radar. He joined Canadian billionaire Steve Apostolopoulos in submitting record-setting bids late last month. Harris, 58, will end up paying over a billion more for the Commanders than Walton paid for the Broncos (an American sports-record $4.65 billion), but the NBA and NHL owner has moved close to entering the country’s most popular sports league.

Harris is a Chevy Chase, Maryland, native who bought the Sixers in 2011. His ownership group acquired the Devils two years later. Harris also owns English Premier League franchise Crystal Palace. In June 2020, Harris purchased a stake ($140MM, approximately 5%) of the Steelers. Tepper also bought an NFL team after having been a Steelers minority owner. Like Tepper, Harris will need to sell that stake before taking over in Washington.

The Oversight Committee’s investigation into Snyder and the Commanders wrapped late last year. Its report accused Snyder of permitting and participating in a longtime toxic workplace culture. Snyder is believed to have leaked the emails that led to Jon Gruden‘s Raiders exit, and the Committee accused the NFL in assisting the Washington owner in preventing the 2021 Beth Wilkinson probe from producing a written report. The forthcoming White report likely represents the next shoe to drop for Snyder, who is also being investigated by the office of Virginia’s attorney general. A lawsuit from the D.C. attorney general, one that also included the NFL, has accused Snyder of “colluding to deceive and mislead customers.”