Dan Snyder

Latest On Josh Harris, Commanders Deal

June 2nd, 2023 at 9:54pm CST by Ely Allen

As many times as it’s been said in this situation, the end seems to be drawing nigh in the sale of the Commanders from Dan Snyder to Josh Harris. The newest breakdown, provided by Mark Maske and Nicki Jhabvala of The Washington Post, details the plans of the NFL finance committee and provides an update on the progress of an indemnification agreement for Snyder.

Harris and Snyder agreed to an exclusive deal that would transfer ownership to a Harris-led group for $6.05 billion. The deal faced some hurdles, though, as the increasingly expensive price tag for NFL franchises has made it difficult for buying groups to complete purchases under the finance committee’s existing debt rules. Issues ranged from the amount of debt being taken on by Harris personally to the international source of some of his contributing investments to a reported “earnout” incentive designed to pay Snyder “an amount contingent on the franchise reaching specified financial benchmarks.”

According to Maske and Jhabvala, Harris “has given assurances that he will make the necessary adjustments…to secure the approval of the league’s franchise owners.” Harris is scheduled to have an in-person meeting with the eight-owner finance committee in New York this coming Wednesday, in which he will propose his solutions to the committee’s previous concerns and allow for further questions.

Additionally, in an effort to accelerate the progress of the deal, the finance committee has plans “to meet remotely several times in the coming weeks.” Assuming the two sides leave New York with a mutual understanding, there is hope that a vote to ratify the sale could potentially happen as soon as late-June or early-July. How soon that vote can occur also depends on whether the NFL would allow a vote to be taken remotely or if they would insist on an in-person meeting. Regardless, a possible owners’ meeting, special to this purpose, has been mentioned with a proposed date in August, as the next scheduled meeting isn’t until October.

Another hurdle the league has to overcome before the sale can be ratified is the remaining issues with Snyder as he reportedly seeks indemnification against legal and financial liability as a part of the sale. He has also supposedly beseeched the NFL to withhold the findings of their second investigation into Snyder and the Commanders being carried out by attorney Mary Jo White, although Washington denies both claims.

Regardless, Maske and Jhabvala report that a resolution of this situation was “95 percent done” as of last week. It’s unknown whether or not Harris’s group will indemnify Snyder or to what degree, but it’s common knowledge that the league’s owners have no desire to indemnify him. In fact, they want Snyder to indemnify them, a practice commonly found in previous sales.

Either way, the finish-line looms on the horizon. If the resolutions of both major impediments truly are close at hand, we may see the end of this ordeal in the weeks leading up to the 2023 NFL season. Many of the contributing sources were quick to cover themselves by adding a colloquial “it’s not over until the fat lady sings,” but it is seeming more and more that the end is in sight.

Commanders Contract Matters On Hold Amid Likely Ownership Change

June 1st, 2023 at 1:36pm CST by Sam Robinson

The timeline for Dan Snyder‘s long-reported sale — to Josh Harris — has overshadowed everything else pertaining to the Commanders this offseason, and that likely will continue into the foreseeable future.

Snyder and Harris have reached an exclusive sale agreement, doing so in early May. Issues surrounding the league’s debt limit and the number of investors in Harris’ ownership group are expected to produce an extended timetable before the Philadelphia 76ers and New Jersey Devils owner takes over. Although Roger Goodell expects Harris’ purchase to be ratified, the NFL’s finance committee is still reviewing the $6.05 billion agreement.

As that matter persists, Snyder may still have some big-picture decisions to make. Though, it sounds like the Commanders’ football-side decision-makers would prefer to avoid that. The team is pausing contractual matters for the time being.

“We’ll have to work through some things before we can do any of that stuff,” Ron Rivera said (via Outkick.com’s Armando Salguero) regarding contract issues. “We’re in a good position right now. I don’t think we really need to make those type of moves. If something does come up, I’ll probably reach out to the current owner and see what we’re capable of doing still.”

Fewer contract issues exist compared to last summer for the team. The 2022 offseason featured negotiations with Terry McLaurin and Daron Payne. McLaurin signed his extension last June, while Payne ended up receiving the franchise tag this year. But the Commanders became the first (and only) team to lock down a tagged player this year, giving the standout defensive tackle a four-year, $90MM extension in March.

“It’s been put out there that everything’s kind of in a holding pattern until we get everything done and put into place,” Rivera said. “I do know that there is a plan. We’ve had a plan. We went through what the plan was in February, March, April. We’ve adjusted it because we got Daron taken care of.

“And so now, we have a plan to focus on the next few guys that we feel we’ve got to be able to go after. But once the ownership change happens, we’ll be able to sit down with the powers that be and explain to them what we see and hopefully they’ll agree with it, and we’ll be able to go forward.”

Beyond signing draft picks, the Commanders do not have a McLaurin- or Payne-level contract decision to address. The team stood down at quarterback, going with an oft-questioned plan of a Sam Howell–Jacoby Brissett competition, and did not pick up Chase Young‘s fifth-year option, pointing to a “prove it” season for the former Defensive Rookie of the Year. This ownership transfer delay could affect the team’s proceedings with Montez Sweat, who is going into his fifth-year option season. The Commanders would have the franchise tag available for Sweat in 2024, but Young’s status — as he prepares for a full season, after seeing his 2021 ACL tear nearly knock him out for all of 2022 — stands to play a role on that front as well. Harris will likely be in place as owner when a potential Young-or-Sweat decision emerges.

Although the NFL’s spring meetings went off without a vote on Harris’ Commanders purchase, a meeting can be called specifically for a vote. That remains expected before the season begins. For the time being, Rivera, GM Martin Mayhew and Co. are somewhat restricted in how they navigate financial matters.

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.

Roger Goodell Expects Commanders Sale Ratification

May 26th, 2023 at 2:47pm CST by Adam La Rose

With the latest round of league meetings having come and gone, the sale of the Commanders remains an ongoing process. The agreement which would see Josh Harris become the team’s majority owner is the subject of review from the league and could see adjustments made in the coming weeks, but optimism is in place regarding the chances of the deal going through.

Commissioner Roger Goodell is striking a similar tone on the subject. His comments regarding the sale point to a ratification vote taking place at some point, though no timetable is in place for that to happen. At least 24 owners would need to approve the deal, something which is not expected to be in doubt if the finances of the Harris purchase can be worked out.

“I think we’ll get it to a place where it will be approved,” Goodell said, via Mark Maske and Nicki Jhabvala of the Washington Post. “The [finance] committee really just had their first meeting [Monday] on the matter. We really got the documents last week. So we’re hard at work as a staff looking at that, as we do every transaction. There’s a lot of due diligence as well as compliance issues. All of that’s happening and working full speed… And we’ll have a meeting at the appropriate time.”

The desire on the part of other owners to use the sale as a means of ousting Dan Snyder is well known. The latter has become embroiled in a number of scandals and investigations during his 24-year tenure at the helm of the franchise. Those issues have led to indemnification becoming a key talking point in this process, with owners attempting to not only prevent Snyder from receiving legal protection, but also ensure that they are covered against any potential future action by Snyder.

The latter is “eager ” to finalize the sale, per the Post’s report. It adds that the NFL has been in discussions with Snyder’s representatives, and that talks on the issue of indemnification are now “95%” complete. That development is particularly important with respect to the ongoing Mary Jo White investigation into the Commanders. The results of that probe, Goodell has maintained throughout its process, will be made public regardless of if it is finished before or after the sale goes through.

“When she’s concluded the investigation, she’ll let me know,” Goodell said of White. “We have pledged to make sure we tell our ownership. And we’ve pledged to make sure that the findings are made public. So we will do that.”

On the financial side, concerns have been raised about the Harris deal’s number of partners and its breaching of the NFL’s $1.1 billion debt limit for franchise sales. Detailing the matter further, Forbes’ Mike Ozanian reports that $1 billion of the Harris bid comes in the form of unsecured debt. The matter of whether that amount is considered equity (which is strictly prohibited under NFL rules) as opposed to capital could represent a major hurdle. In addition, more than the maximum 24 limited partners could be counted as being involved in the Harris group if the investors in their respective organizations are taken into account, per Ozanian.

The likeliest outcome of this process seems to remain a ratification vote taking place in the summer, but a number of issues are yet to be resolved. Presuming a sale does indeed go through, however, all parties involved will have achieved a significant shared objective.

Colts’ Jim Irsay, Cowboys’ Jerry Jones Address Commanders Sale

May 23rd, 2023 at 9:58am CST by Adam La Rose

One of the key topics of conversation during the first day of the current league meetings was the sale of the Commanders. Despite the fact that a deal is in place for Josh Harris to replace Dan Snyder as owner, ratification from the league may not come for some time.

Harris and Snyder entered into a signed, exclusive agreement earlier this month. As a result of that deal, the franchise is on track to sell for a record-breaking $6.05 billion, though issues have arisen given the structure of the agreement. Specifically, the Harris group’s ability to stay under the league’s $1.1 billion debt limit to finance the purchase is a hurdle which has yet to be cleared.

As a result, no timeline is currently in place for the league’s finance committee to produce a recommended course of action, and, subsequently, for owners to vote on the sale. At least 24 owners would need to approve the deal, something which has long been considered a formality due in large part to the widespread desire to have Snyder’s tenure at the helm of the Commanders come to a conclusive end. Whether or not this process will be completed before the fall remains an open question, though.

When speaking on that point, Colts owner Jim Irsay said, via The Athletic’s Ben Standig, “we’d like to see it get done. But, we’re not there yet” (subscription required). Irsay added that “probably several more weeks of discussions” will be necessary to finalize the transfer of ownership to Harris, who has a controlling stake in the Philadelphia 76ers, New Jersey Devils and English Premier League club Crystal Palace.

Adding to the optimism that this deal will cross the finish line, Cowboys owner Jerry Jones said, “I would anticipate it being done. These are outstandingly qualified owners” (video link via Jori Epstein of Yahoo Sports). Jones added that he does not foresee the agreement’s structure – which includes support from numerous investors, including NBA legend Magic Johnson – as being enough of an issue to prevent an ultimate approval.

“To have a new ownership group in there before the season opener, that would be a goal,” Irsay said. “It’s not an impossibility. There would be a special meeting after July 4 for something like that to happen. I know that the commissioner will continue to look and see what our schedule is going to be. But there’s work to be done.”

As the sale of the Broncos last offseason showed, a gap in time can exist between a winning bid emerging and final ratification taking place. Plenty of time remains for that to happen in this case, and the league will likely work with increased urgency to allow for Harris to be installed as owner in time for the regular season as the summer moves along.

“There are different layers of league policy that exist beyond just that acquisition and that sort of thing,” Irsay added. “So it’s just trying to make sure deals comply with that… In the end, we’re hopeful that we can work towards getting a deal done.”

No NFL Vote Imminent On Josh Harris’ Commanders Purchase

May 19th, 2023 at 9:53am CST by Sam Robinson

The prospect of next week’s owners meetings being the venue for a ratification vote on Josh Harris‘ Commanders purchase looked like a long-shot proposition. The NFL has since confirmed no vote will take place at the May 22-23 set of spring meetings in Minneapolis, according to the Associated Press.

Harris’ $6.05 billion exclusive sale agreement with Dan Snyder remains under standard review, and the deal’s complications will almost definitely drag this process out well into the summer. While Harris (and an expansive number of investors) are prepared to put up a record-shattering price for the Commanders, speedbumps have emerged.

Last year’s Broncos sale — a sweepstakes that featured Harris’ group finishing second — brought a two-month gap between Rob Walton‘s then-record-setting bid ($4.65 billion) to his August 9 ratification. As expected, the Walmart heir’s group encountered no turbulence. The league vetted Harris — who owns the Philadelphia 76ers, New Jersey Devils and Premier League club Crystal Palace — during the run-up to Walton’s Broncos acquisition, but issues with the structure of his Commanders bid have caused concern among other owners, ESPN.com’s John Keim adds.

The sale must go through the NFL finance committee and then receive 24 votes from the other owners to be ratified. The number of partners in Harris’ group (north of 12) will lengthen the vetting timetable, especially with some of the investors based outside the country. Magic Johnson, billionaire Mitchell Rales and David Blitzer, who is part of Harris’ Devils and 76ers ownership groups, are among the investors.

Matters pertaining to the NFL’s debt limit, with league rules stipulating buyers of teams being able to borrow up to $1.1 billion secured against the franchise, also serve as barriers en route to Harris’ purchase. The finance committee considers the Harris deal well above the debt limit, per Mark Maske and Nicki Jhabvala of the Washington Post. No red tape regarding financial construction would have likely emerged had Amazon founder Jeff Bezos submitted a bid, but the longtime Snyder nemesis did not do so. Bezos bowing out immediately preceded Harris moving into pole position.

These hurdles have led to rumors that this Harris bid would not be approved were it not for owners’ desire to see Snyder’s scandal-ridden ownership tenure end. That said, Harris’ group contends, per Keim, the NFL has not voiced concerns about the sale agreement to this point. That chapter may be in store, but for now, the league continues its examination stage regarding Snyder’s exit.

Latest On Potential Commanders Sale

May 17th, 2023 at 9:52pm CST by Ely Allen

ESPN’s Seth Wickersham and John Keim recently reported on a prospectus drafted by Harris Blitzer Sports & Entertainment and its advisers. The “Harris” of that group is in reference to 76ers co-owner and potential buyer of the Commanders, Josh Harris. Harris and company drafted the 43-page document, titled “Commanders Investment Opportunity” and marked as “Privileged & Confidential,” to help pitch potential limited partners to buy into the deal with Harris.

The reason this seems unfamiliar is because, in the past, buyers of franchises have historically been able to afford the purchase without the help of limited partners. As franchise prices continue to skyrocket, though, it should be expected that what has become known as an unnecessarily complicated financial agreement will be become the new norm.

In the document, Harris paints the picture of a future for the Commanders that includes boosted attendance, increased ticket sales and sponsorship revenue, and even a new stadium. There are almost certainly specific plans to address these assignments, but the report focuses on Harris’s assertion that the mere removal of current ownership should greatly assist in propelling the franchise towards those end goals.

Harris argues that the recent spiraling in attendance, ticket sales, and sponsorship revenue are all direct consequences of “allegations against current ownership.” He points out that the franchise has, historically, ranked among the best in the league for local revenue metrics and attendance, and that, with new ownership, opportunities will arise to help restimulate and drive local revenue. Harris predicts that the potential new ownership will more than double this year’s local revenue ($173MM) by the 2031-32 season, quoting estimates of $380MM or $466MM if the team were to build a new stadium.

On that front, Harris offers both the idea of auctioning off naming writes as an instant opportunity for cash as well as hope that FedEx Field may soon be vacant. Soon is a relative term, as the prospectus offers 2031 as a moving date, much later than recent executive rumors of 2027-28, when the team’s current contract expires. It mentions that the new stadium could be built on its current site or at the site of Robert F. Kennedy Memorial Stadium near the Capitol but proposes that Virginia may offer the best incentives. A stadium bill had been passed in the Virginia House and Senate before the infamous allegations killed the bill before it could get to the governor.

The prospectus did its job of helping Harris to pool together multiple limited partners and make his bid, but the complications of the situation do not stop there:

It’s been reported plenty that the NFL finance committee has several points of contention with the current Harris-Commanders deal. One of the reported issues, according to Mark Maske and Nicki Jhabvala of The Washington Post, is a reported “earnout” incentive in the deal. The “earnout” is reportedly a structure that would provide the seller, Dan Snyder, with “a deferred payment of an amount contingent on the franchise reaching specified financial benchmarks.” Its inclusion has been tabbed as one of many markers of an unusually complex agreement.
The Commanders face further turbulence as the sale continues to stall. Jhabvala and Maske report that the team has been fined $425K by the District of Columbia and required to “refund more than $200K in deposits to D.C. ticket holders.” This punishment is reportedly part of a settlement reached with the office of D.C. Attorney General Brian L. Schwalb. Schwalb told The Post that the team “improperly held on to security deposits that it was required to return…misused those moneys…knowingly used the security deposit for purposes it wasn’t supposed to use the money for…(and) knowingly made it unnecessarily difficult for fans to get their money back.” Despite agreeing to the settlement, the team denies all the allegations listed above by Schwalb, according to Tom Pelissero of NFL Network.
Lastly, in a bit of an older report from Maske and Jhabvala, legal representatives of more than 40 former Washington employees have urged for an added stipulation to the sale. The attorneys have asked NFL commissioner Roger Goodell and the league’s team owners to prohibit Snyder “from suing his accusers who participated in the investigations as a provision of the sale of the franchise.” In a letter sent to Goodell, the attorneys requested that Goodell and company include “a contractual provision that forbids Mr. Snyder from initiating litigation against any of the individuals who participated in the various investigations into the team, including but not limited to” the 40-plus clients they represent. Due to Snyder’s “well-earned reputation for being vindictive and litigious,” the group fears retaliation for their clients’ participation.

Latest On Commanders Sale

May 14th, 2023 at 1:04pm CST by Adam La Rose

The next major step toward a formal sale of the Commanders took place recently, with Dan Snyder and Josh Harris announcing that a sale agreement is in place. The deal may not become official in time for the next owners’ meetings, however.

A report from the Washington Post’s Mark Maske and Nicki Jhavbala notes that the agreement in place “probably would not be approved without some revisions” under normal circumstances. Momentum for Harris taking over the embattled franchise, they add, stems primarily from the “strong desire” to see Snyder displaced as owner, rather than the offer being clear of issues.

The latter point has been mentioned as a potential hurdle to a quick approval of the deal. Finances are at the heart of concerns the NFL’s finance committee may have, though clarity has recently emerged regarding the various investors involved in the Harris bid. NBA icon Magic Johnson and billionaire Mitchell Rales are among those contributing to the record-breaking $6.05 billion sales price, though several other individuals are on board as well.

The next league meeting will take place May 22-23, which will be after the recommendation from the finance committee regarding approval of the sale is made. As the Post report notes, it is now “increasingly unlikely” that ratification will take place at that time. Instead, the league’s owners (at least 24 of whom will need to vote in favor of the deal to make it official) might only be updated on the status of the Harris bid, with a formal vote taking place “in the coming months.”

That would follow a similar timeline to last year’s Broncos sale, in which Harris was the runner-up. The vetting process on the Philadelphia 76ers and New Jersey Devils owner already took place then, which should help the Commanders sale move along at a steady pace in the coming weeks. Barring any further complications regarding Snyder and the ongoing investigations into sexual misconduct and financial improprieties, this saga could still reach an end during the 2023 offseason.

Dan Snyder, Josh Harris Reach Commanders Sale Agreement

May 12th, 2023 at 10:10pm CST by Sam Robinson

Josh Harris‘ push to acquire the Washington Commanders is nearing the goal line. The Philadelphia 76ers owner reached a sale agreement with Dan Snyder on Friday, Adam Schefter of ESPN.com reports (on Twitter).

The parties unveiled a joint announcement on the sale. Harris submitted a record-shattering bid for the franchise in late March. After Harris raised his bid to $6.05 billion in April, the NFL began reviewing it. This is an exclusive sale agreement, Mark Maske and Nicki Jhabvala of the Washington Post report, walling off the Harris competitors that previously lurked in these proceedings. The parties’ previous deal had kept that window open for others, but Harris had remained the frontrunner to make the deal.

Although some hiccups emerged, it does not appear they will deter the NFL from greenlighting this sale. Once NFL owners approve of the sale — as they have long been expected to — the Commanders will be transferred to Harris’ ownership group. The next owners’ meetings are set for May 22-23 in Minneapolis. This would represent the first opportunity for the owners to approve Harris, though the vetting of Harris’ large investment group is unlikely to be completed by that point.

Since his 2022 ownership group finished second in the Broncos sweepstakes, Harris has been vetted by the league. Reaching the necessary 24-vote threshold is not believed to be an issue here. Friday’s announcement makes it all but certain the Commanders will have a new owner by the start of the 2023 season, but Maske adds (via Twitter) it might take months before a ratification vote is held (Twitter link).

After the NFL finance committee met this week, issues involving Harris meeting certain requirements — this ownership group’s number of limited investors and the amount and source of the debt involved in the deal — emerged. Harris, the lead investor here, must have at least a 30% equity stake in the franchise. With the NFL eager to see Snyder moved out of the picture, concerns surrounding the multisport owner’s group have not been viewed as enough to derail an agreement.

Harris’ ownership group, which includes NBA legend Magic Johnson and billionaire Mitchell Rales, needed to outflank a bid from Canadian billionaire real estate developer Steve Apostolopoulos and another from Houston Rockets owner Tillman Fertitta. The late-emerging bid from ex-Duke basketball player Brian Davis, which raised a number of questions, never looked to be seriously considered. Harris is a Washington D.C.-area native.

“Growing up in Chevy Chase (Maryland), I experienced first-hand the excitement around the team, including its three Super Bowl victories and long-term winning culture,” Harris said. “We look forward to the formal approval of our ownership by the NFL in the months ahead and to having the honor to serve as responsible and accountable stewards of the Commanders franchise moving forward.”

While Harris’ arrival will generate intrigue, considering he also owns the NHL’s New Jersey Devils and Premier League’s Crystal Palace, Snyder’s exit will be embraced by the league. The outgoing owner’s increasingly scandal-clouded tenure — one that has also seen Washington’s on-field performance suffer throughout the unpopular leader’s run — has represented a black mark on the NFL. The House Oversight Committee recently concluded its investigation into Snyder and the Commanders, finding financial impropriety and rampant workplace misconduct, and the NFL’s second probe into the embattled owner is near completion.

An ESPN report surfaced Friday indicating Snyder seeks to prevent the NFL’s Mary Jo White-led investigation from producing a full report. The NFL’s decision to nix a written report coming out of its previous probe — one that led to a $10MM Snyder fine and a de facto suspension — brought sweeping criticism and prompted the Oversight Committee investigation and this White-run inquiry. Snyder did not cooperate with White’s investigation, and Don Van Natta and Seth Wickersham report the outgoing owner has aimed to limit the findings released to the public. But White’s report has long expected to be released. Snyder reaching a sale agreement is not known to be contingent on White’s report or protection for Snyder against future litigation.

The ESPN report that accused Snyder of gathering dirt on several owners and Roger Goodell — for leverage purposes — began the chain of events that produced this sale agreement. Snyder, who had previously said he would never sell the team, soon hired a firm to explore a sale. Although Snyder sought a reported $7 billion, he will still fetch a record-shattering price. When the Rob Walton-fronted ownership group bought the Broncos for $4.65 billion last summer, no previous NFL franchise had even sold for $3 billion. Harris’ purchase will more than double what David Tepper paid for the Panthers in 2018.

Snyder bought this franchise in 1999 for barely $800MM. Snyder’s reputation has absorbed numerous blows, and while he remains engulfed in multiple investigations, this sale obviously represents a tremendous return on investment. The NFL has never voted out an owner, and the sale will prevent the league from a serious push in this direction. Assuming the NFL OKs Harris’ purchase, he will get to work on repairing a downtrodden organization, one that has not seen consecutive playoff berths since the early 1990s.

Josh Harris-Commanders Deal Faces Hurdles

May 10th, 2023 at 8:56pm CST by Ely Allen

The situation surrounding Dan Snyder‘s potential sale of the Commanders seemed nearly over as reports appeared to be pointing towards a sale to the Josh Harris-led group last month. As a result of the NFL finance committee’s review of the potential sale, questions have been raised about the integrity of the deal, according to Daniel Kaplan of The Athletic. The main concerns lie on two fronts: 1) the number of limited investors involved in the deal and 2) the amount and source of the debt involved in the deal.

The NFL currently has a set cap for how many limited partners may be involved in an ownership group, currently set at 25. The Harris group contains approximately 17 limited partners. While that group is under the league’s cap, each investor requires extensive vetting and, with some investors located internationally, the vetting process becomes that much more cumbersome.

As for the debt involved, “buyers of teams can borrow up to $1.1 billion secured against the franchise,” something Harris proposes he will do. The problem stems from the fact that he also intends to borrow more with debts secured against the other sports teams in which he holds stake, the Philadelphia 76ers, New Jersey Devils, and Crystal Palace FC of the English Premier League.

Similar deals have been made in the NFL with limited partners. Snyder’s original purchase of the team included this method of sourcing debt. The issue lies in the fact that it is the controlling partner, Harris, who is borrowing against his own businesses. If a limited partner defaults on his loans, it wouldn’t affect the controlling party, but the committee has concerns about the possibility of Harris defaulting on his debts as the controlling partner.

It’s not the opinion of the public that the deal will be rejected over these issues, according to Mark Maske and Nicki Jhabvala of The Washington Post, but the additional hurdles may push the timeline of the deal, making it “increasingly unlikely the owners can vote to approve the transaction, even on a conditional basis, during their May 22-23 meeting in Minneapolis.” Some solutions that have been proposed are the result of the deal’s extenuating circumstances. For instance, a suggestion that Snyder himself may extend a loan to the Harris group in hopes of getting the deal over the finish line. The loan would be approximately $200MM.

Another thought was that the league may conditionally approve a rise in the allowance of debt. Due to the recent skyrocket of franchise prices (Panthers for $2.28 billion in 2018, Broncos for $4.65 billion in 2022), the NFL figured that it would become increasingly difficult for buyers to acquire teams under the current debt rules. There are still some potential bidders who may be able to go through with the purchase under the current rules, but with rising prices, that only makes an already extremely selective process that much more difficult.

There’s still optimism the deal with get approval, in due time. A source close to Harris aptly said, “It’s dragging through the NFL because they’ve never had to evaluate this type of bid. The NFL’s choice is getting Dan out (by) working through Josh’s complexity. I think they’ll find a way, but no guarantees.”

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