Dunn and Tanya Snyder agreed Friday to sell the Washington Commanders to an investment group led by Josh Harris, with the NFL signing a proposed $6 billion sale.
The two sides had reached a tentative agreement a month ago, but the non-exclusive deal gives Snyder the option to continue looking for other bidders or withdraw.
On Friday, Harris and his group announced they had entered into a sale and purchase agreement, which is subject to approval by the NFL’s finance committee and at least three-quarters of the owners of the league’s 31 other teams, a record for a sports franchise. price will be set.
“We are very pleased to have reached an agreement with Josh Harris and his incredible group of partners from the region to sell the Commanders franchise,” said Tanya Snyder and Dan Snyder. said in a joint statement. “We look forward to completing this transaction quickly and rooting for Josh and the team for years to come.”
In a statement on behalf of his own ownership organizations, including Magic Johnson, Harris said, “We are honored to have our ownership officially recognized by the NFL in the coming months and to serve as responsible stewards of the NFL. I’m looking forward to it,” he said. The Commanders franchise moves forward. “
The announcement comes two days after the league’s Finance Committee met in New York to review the outline of the deal. All NFL owners will be briefed on the proposed deal when they meet in Minneapolis on May 22nd and 23rd, and may vote on it in the coming months.
“League staff and the Finance Committee will review the details of the proposed transaction with Washington,” league spokesman Brian McCarthy said in a statement.
But approval is not taken for granted.
Finance committee members who considered the proposed deal on Wednesday were concerned that the debt in Harris’ bid exceeded the league’s debt limit, according to two people who attended the meeting. .
According to NFL rules, team acquisitions cannot include debt of less than $1.1 billion. The Harris Group paid a record $6 billion, about $1.4 billion above the record $4.65 billion paid to the Denver Broncos last year by the Walton Penner family, who made their fortunes primarily through Walmart stock. Agreed to pay the dollar.
Harris Group will have to waive the league’s funding rules if the debt contained in the contract exceeds the limit. You can also change the structure of the arrangement.
In recent weeks, the Snyders have sought protection from an unresolved league investigation led by Mary Jo White, hired by the NFL to investigate allegations of financial misconduct and sexual harassment at the club. The NFL has not announced a schedule for releasing its report.
But according to people familiar with the terms of the deal, who weren’t authorized to speak publicly about the terms of the deal, Harris said Snyder would not be penalized by the league that could result from the NFL’s investigation into the sexual harassment allegations. He said he did not agree to protect the couple. Another person familiar with the deal said the league has also not agreed to compensate Snyder.
Prosecutors in the District of Columbia and Virginia have also launched public investigations into the team.
If the sale is approved, Mr. Harris’ group could soon consider refurbishing FedEx Field, which opened in 1997 and continues to this day. suffering from leaking pipes others structural flawsOr build a new stadium in the Washington area. Either option would require billions of dollars in additional funding.
Harris’ investment group, which already owns the NBA’s Philadelphia 76ers, the NHL’s New Jersey Devils and parts of the English Premier League’s Crystal Palace, will make a bigger investment to buy the Commanders. Gathered a family group. A combination of the other three clubs.
His group includes Johnson, an NBA Hall of Famer and co-owner of the Los Angeles Dodgers. David Blitzer, Head of Blackstone Tactical Opportunities. Mitchell Lares, Washington-area real estate investor. And Eric Schmidt is the former chairman of Google.
