Thursday was a day many Washington Commanders fans had been waiting for for years.
Dan Snyder agreed in principle to sell the Commanders to an investment group led by billionaire Josh Harris for $6.05 billion, according to sources with knowledge of the deal. The deal is not finalized and must still be submitted to the NFL and approved by the league’s owners.
The development puts Mr. Snyder on the verge of selling the team he bought for $800 million in 1999. Over his nearly 24 years of ownership, the embattled billionaire oversaw an era of on-the-field failures and off-the-field scandals that chased away fans in droves.
Mr. Snyder put the team on the market after turmoil in recent years that included a congressional investigation for a widespread misconduct scandal, a team name change and mounting pressure from his peers that he needed to sell.
If finalized, the Commanders will be sold to an investment group led by Mr. Harris — a private equity executive who owns the NBA’s Philadelphia 76ers and the NHL’s New Jersey Devils. According to Forbes, Mr. Harris holds a net worth of $6 billion.
Mr. Harris’ group includes Maryland-based billionaire Mitchell Rales (net worth of $5.7 billion) and NBA legend Magic Johnson. Mr. Harris pursued the Denver Broncos before the franchise was sold last year to Walmart heir Rob Walton for $4.65 billion.
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Mr. Harris’ offer is fully financed, but the agreement is not exclusive, which means other bidders still have room to swoop in with other offers. Canadian billionaire Steve Apostolopoulos has offered $6 billion.
Mr. Harris’ offer for the Commanders would set a record for the price of a professional sports team. For a deal to be ratified, at least 24 NFL owners must approve the agreement. The owners are scheduled to meet May 22-24 in Minneapolis.
The Commanders, the NFL and a spokesperson for Mr. Harris declined to comment.
Earlier Wednesday, news reports said Amazon founder Jeff Bezos would not submit a bid for the team.
Mr. Harris had been long mentioned as a suitor for the team. Beyond his interest in the Broncos, the 58-year-old holds ties to the NFL as a minority owner of the Pittsburgh Steelers. Mr. Harris would have to sell those shares once a deal is finalized.
As an owner of the 76ers, Mr. Harris is considered innovative. He has hired star executives, lured a big-name coach in Doc Rivers and taken bold steps in pursuit of a championship. On his watch, Mr. Harris hired general manager Sam Hinkie, who implemented “The Process,” a controversial strategy that embraced tearing down Philadelphia’s roster to lose as many games as possible to shore up better draft positioning.
That tactic resulted in the 76ers drafting players such as Joel Embiid, the front-runner for this year’s MVP award. After rebuilding for four seasons, the 76ers have made six consecutive postseasons.
Mr. Harris’ hockey team has had more of a mixed record. This year will mark just the second playoff appearance for the Devils in his 10-season tenure. New Jersey has generally drafted well and has been aggressive with trades for star players.
If the NFL approves Mr. Harris, he will have beaten out other prospective bidders, such as Mr. Apostolopoulos and Houston Rockets owner Tilman Fertitta.
Mr. Fertitta told CNBC this week that he drew a “line in the sand” regarding his pursuit of the team and wouldn’t bid above $5.6 billion, Forbes’ valuation of the Commanders.
Unlike Mr. Apostolopoulos and Mr. Fertitta, Mr. Harris and Mr. Rales hold connections to the area. Mr. Harris grew up in Chevy Chase, Maryland, and attended The Field School in the District. Mr. Rales was raised in Bethesda and became a co-founder of the D.C.-based Danaher Corp., a global manufacturing conglomerate.
Local ties made little difference for Mr. Snyder when it came to running what he often said was his favorite team as a boy.
Over his tenure, the team compiled a 164-220-2 regular season record and made the playoffs only six times in 24 seasons (with only two postseason victories). As losses and scandals mounted, the Maryland native was increasingly seen as the villain — a meddlesome amateur who mismanaged coaches, quarterbacks and negotiations for a new stadium.
Mr. Harris’ group will be tasked with restoring the Commanders’ reputation, restarting the stalled stadium talks and determining the futures of key officials such as coach Ron Rivera and Jason Wright, the team president. The Commanders ranked last in attendance in 2022.
The Commanders have been on the market since November, when the team announced that Mr. Snyder and his wife, Tanya, had hired an investment bank to explore “potential transactions.”
The announcement was made after a series of controversies involving Mr. Snyder and the team. At the time, Mr. Snyder was the subject of at least six investigations from Congress, the NFL, the U.S. attorney’s office in the Eastern District of Virginia and attorneys general in the District, Maryland and Virginia. The probes stemmed from allegations of sexual misconduct and financial improprieties, which created anger among NFL owners.
In October, Indianapolis Colts owner Jim Irsay became the first to suggest that Mr. Snyder’s removal from the NFL merited “serious consideration.” The NFL has never formally voted to remove an owner, as the action would require at least 24 votes. But the suggestion raised the pressure on Mr. Snyder to sell — something the team had long maintained that he wouldn’t do.
Several probes into Mr. Snyder have concluded while others continue. The most notable to be active include the federal investigation and the NFL, the latter of which has hired former Securities and Exchange Commission Chair Mary Jo White to oversee its probe.
NFL Commissioner Roger Goodell said last month that Ms. White’s report will be released even if Mr. Snyder no longer owns the Commanders by the time it is ready to be published. The league has said there is no timetable for Ms. White’s probe to be concluded.
Lisa Banks and Debra Katz, lawyers representing more than 40 former Washington employees, said in a statement that Mr. Harris’ agreement to buy the Commanders “marks the end of a long, difficult chapter” under Mr. Snyder.
“We are proud of our many clients who made this moment possible — the brave women and men who came forward repeatedly and at great personal risk to expose the decades of sexual harassment and financial wrongdoing at the team,” Ms. Banks and Ms. Katz said. “Their determination and perseverance forced this sale to happen.”
Commanders fans were ecstatic about the news that Mr. Snyder and Mr. Harris had reached a preliminary agreement. Mark Moseley Jr., son of Washington Redskins kicker and 1982 NFL MVP Mark Moseley, tweeted that he was looking forward to his 40s after “wasting” his past two decades watching Mr. Snyder’s teams. Actor Christopher Meloni congratulated the team on social media, adding: “I humbly suggest you change the name again.”
Mr. Harris now will likely be the one to make the call about whether the Commanders undergo another rebrand.
That’s just one item on a long list of decisions facing any new owner looking to restore the luster to a diminished franchise.
• Matthew Paras can be reached at mparas@washingtontimes.com.
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