If his tentative agreement to buy the Washington Commanders becomes finalized, Josh Harris would reportedly own 30% of the franchise — the minimum amount allowed by the NFL to still be considered the managing partner of a team.
Forbes reported Tuesday that Harris’ group contains a total of 17 limited partners. Maryland billionaire Mitchell Rales would be slated to own 12%, while NBA legend Magic Johnson would hold a 4% stake if the deal becomes finalized.
The business publication also revealed new details of Harris’ terms with Commanders owner Dan Snyder. The agreement calls for Harris’ group to pay Snyder $5.8 billion for the team upfront and another $250 million over two years, Forbes reported.
The contract has yet to be finalized after Snyder and Harris agreed to a deal in principle last week for $6.05 billion. The term sheet has reportedly been sent to the NFL so that the league can review the structure and provide feedback as needed.
NFL rules call for a team’s managing partner to own at least 30% of equity in a franchise. According to Forbes, if Harris’ group takes on the league’s maximum allowable debt ($1.1 billion) to buy the Commanders, then Harris would have to put in $1.5 billion to hold a 30% stake.
The Commanders would be Harris’ third North American sports team in which he would be the lead owner. The private equity mogul also owns the NBA’s Philadelphia 76ers and NHL’s New Jersey Devils.
Harris was seen sitting courtside Monday in Philadelphia with Rales during the 76ers’ Game 2 playoff win over the Brooklyn Nets.
Great shot of Josh Harris and Mitchell Rales at the Nets-Sixers playoff game, sitting alongside Mark Ein #Commanders #HTTC@NBC4Sports @nbcwashington pic.twitter.com/74TMgAJv0q
— Heather McDonough (@HeatherMcD4) April 18, 2023
• Matthew Paras can be reached at mparas@washingtontimes.com.
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