NFL owners approve Josh Harris’ purchase of Washington Commanders

NFL owners voted unanimously Thursday to approve Josh Harris’ $6.05 billion purchase of the Washington Commanders, setting the stage for the private equity billionaire to take control of the storied franchise from Dan Snyder.

The owners gathered for a special meeting in suburban Minneapolis, where Mr. Harris’ bid was reviewed and voted upon. Mr. Harris, who also owns the NBA’s Philadelphia 76ers and the NHL’s New Jersey Devils, needed at least 24 of 32 votes.

Now that he has approval, Mr. Harris, 58, will look to restore a franchise whose fan base withered over the 24 years of Mr. Snyder’s tumultuous ownership. Mr. Snyder bought the team for $800 million in 1999.

“This franchise is part of who I am and who I’ve become as a person,” said Mr. Harris, who grew up in Chevy Chase, Maryland. “But being a fan is not enough. To be successful, we understand that we need to win championships, create a positive impact on the community and create incredible memories and great experiences for our fan base, much like I had as a youth growing up in Washington.

“To our team and the incredible fan base in Washington, a new era of Washington football is here,” he said. “It’s time to get to work.”

As part of the approval of the sale, the NFL released the findings of a 17-month investigation into the Commanders and Mr. Snyder, who was fined $60 million for what the league found to be credible accusations of sexual harassment of a former employee. The team, according to the league, hid at least $11 million in revenue that was supposed to be shared with the rest of the NFL.

Mary Jo White, the former Securities and Exchange Commission chair who ran the investigation for the league, concluded that the team and Mr. Snyder failed to fully cooperate.

The league issued a 23-page report on Ms. White’s findings. Her investigation began in February 2022, after former employee Tiffani Johnston told members of Congress that Mr. Snyder made an unwanted advance at a work dinner by touching her thigh and trying to coax her into his limo.

Mr. Snyder, who denies the allegations, will pay the fine to the NFL “in resolution of Ms. White’s findings and all outstanding matters,” the league said in a release.

It was unclear Thursday whether the $60 million that the NFL ordered Mr. Snyder to pay would come directly out of what he stands to make from the sale of the team. Also unresolved is whether Mr. Snyder has fully paid back the debt he took on as part of a 2021 deal to buy out his three former minority partners for $875 million. As part of the deal, the NFL granted Snyder a debt waiver that allowed him to take on up to $475 million in debt. 

Mr. Snyder’s scandals helped pave the way for the team to be put up for sale last fall. In November, the team announced that Mr. Snyder and his wife, Tanya, hired an investment bank to explore a franchise sale. Mr. Snyder decided to sell his beloved childhood team after mounting pressure from fellow NFL owners, who appeared to grow increasingly impatient with the controversies that dogged Mr. Snyder and his club.

Over the last three years, the franchise was rocked by a widespread workplace misconduct scandal in which more than 40 former employees said they witnessed or experienced sexual harassment while working for the team. The allegations prompted multiple inquiries — first from the NFL, then later from Congress and other public officials.

From the moment that the Commanders were put up for sale, Mr. Harris has been seen as a serious suitor to buy the club. Already a minority investor in the Pittsburgh Steelers, Mr. Harris previously pursued buying the Denver Broncos in 2022 before the franchise was sold to Walmart heir Rob Walton for a then-record $4.65 billion.

Mr. Harris, in hindsight, is likely glad that he didn’t buy the Broncos given that he was able to land his childhood team.

“Josh will be a great addition to the NFL,” Commissioner Roger Goodell said in a statement. “He has a remarkable record in business, sports and in his communities. The diverse group that Josh has put together is outstanding for its business acumen and strong Washington ties and we welcome them to the NFL as well.”

Mr. Harris leads an investment group that reportedly has 20 limited partners — a rarity in the NFL but a number that falls under the league’s 25-person limit. The group, which provided capital to help Mr. Harris buy the franchise, brings business acumen and, in some cases, star power: Maryland billionaire Mitchell Rales and NBA legend Earvin “Magic” Johnson are among Harris’ partners. Mr. Johnson said in a tweet that he was “especially thankful” and part of an ownership group that is committed to building a winning team.

“It’s all been a dream that has come full circle,” Mr. Johnson tweeted. “I grew up playing football as a kid, I’m a huge NFL fan and I watch games every week. Now, I get to co-own a storied franchise, the Washington Commanders.”

To buy the Commanders, Mr. Harris beat out a field that included Canadian billionaire Steve Apostolopoulos and Houston Rockets owner Tilman Fertitta. Amazon founder Jeff Bezos also explored the possibility of buying the team, but never made an offer.

Mr. Harris and Mr. Snyder reached a tentative agreement in April, with contracts signed a month later. But once the deal reached the NFL’s hands, the process took several months to complete. The league initially raised concerns over the structure of Mr. Harris’ deal, which was described as complex in part because of the vast number of limited partners, as well as other issues that were reportedly related to the debt in the deal.

By Thursday’s vote, however, the issues were resolved, clearing the way for a vote.

“It’s going to be a great day for the NFL,” Dallas Cowboys owner Jerry Jones said before the meeting. “I’m excited. It’s going to be a hallmark day.”

At The Bullpen, an outdoor bar in the District’s Navy Yard neighborhood, fans erupted in cheers when they realized the deal was official. There for a local radio station’s “Burgundy and Sold” event, the crowd grew even louder when 106.7 The Fan’s John Auville announced the news on stage. Mr. Auville, holding two bottles of champagne, started to spray fans upon the conclusion of the announcement.

“Raise up your glasses, raise up your bottles — let’s drink to a fun new era.” Mr. Auville of “The Junkies” shouted. “The nightmare is done. … The Commanders are in good hands now. Let’s celebrate.”

Later in the evening, Mr. Harris called into the station to announce he was buying beer for the patrons of the party, as well as another gathering at Old Ox Brewery in Ashburn, Virginia. “I do not recall Dan Snyder doing that,” 106.7 host Grant Paulsen tweeted. “What a day.”

The celebration will continue Friday. Mr. Harris is set to make his appearance in front of Washington fans as the team will host a “training camp pep rally” at FedEx Field, where he’s also expected to give a press conference.

The rally and presser will be opportunities for Mr. Harris to lay out his vision for turning around the Commanders. Under Mr. Snyder, Washington posted the league’s sixth-worst regular season record over the last 24 years and made the playoffs only six times with two postseason victories.

Mr. Harris reportedly plans to spend the upcoming season evaluating the futures of coach Ron Rivera and team President Jason Wright. The new owner has said he will retain Mr. Wright, at least initially, while Mr. Rivera hopes to sell Mr. Harris on his long-term plan for Washington. Mr. Rivera is in his fourth year of a five-year contract, with training camp set to begin next week.

As for Mr. Snyder, the embattled billionaire will move on to the next stage of his life. But the league’s report Thursday was another cloud over an owner whose tenure was defined by controversies.

In Thursday’s report, Ms. White noted that “Mr. Snyder, for nearly a year, refused to be interviewed and, when he did finally agree to an interview, he declared that it would be limited to one hour.”

She said four witnesses recalled Ms. Johnston told them about her incident with Mr. Snyder very shortly after it occurred, “describing it consistently with her congressional testimony and her account to the Investigators.” Ms. White said in the report that she found Ms. Johnston to be a credible witness.

Ms. White also backed the testimony of former sales executive Jason Friedman, who testified that the Commanders were committing multiple financial improprieties by hiding revenue from the league and intentionally retaining refundable security deposits from season ticket holders.

The Commanders have pushed back hard against Mr. Friedman’s allegations by accusing him of being a disgruntled former employee who was fired from his job. Last week, Mr. Friedman filed a defamation lawsuit against the team and one of its attorneys.

The NFL’s report said Ms. White’s investigation identified about $11 million in revenue — “including those in the Jason Friedman allegations” — that the Commanders appear to have improperly shielded from sharing with the league and fellow owners. Mr. Snyder denied knowing about the issues, which the league said it could not determine.

As for the security deposits, Ms. White found that as of July 17, the Commanders still held $1.9 million in security deposits related to inactive accounts that the team is still trying to resolve. Over the past year, the team has settled cases with the attorney generals in the District of Columbia and Maryland related to the deposit issues, agreeing to repay fans and pay a fine while agreeing to no wrongdoing.

The trouble for Mr. Snyder may not be over. Other ongoing investigations into Mr. Snyder and the Commanders include inquiries from the U.S. attorney’s office in the Eastern District of Virginia and the Virginia attorney general’s office, who are said to be looking into allegations of financial improprieties.

For Mr. Harris, his job will be to pivot the Commanders into a new era in which scandals no longer plague the franchise. Speaking to reporters, Mr. Harris said he realized the “immense responsibility” of owning his local franchise.

“Obviously, this is an amazing day for me and very exciting,” Mr. Harris said. “But I’ve had many sleepless nights and I will have many sleepless nights. … It’s on me and it’s on our ownership group to deliver. And that’s what we’re going to do.”