Josh Harris expects to more than double the Washington Commanders’ local revenue in less than 10 years if his signed agreement to purchase the team gets approved by the NFL, according to a report.
ESPN obtained a 43-page document that lays out his investment group’s financial projections and the Commanders’ revenue as part of a pitch Harris’ group made to draw potential limited partners to buy into his bid for Washington. When Harris announced his agreement to buy the team from owner Dan Snyder, the billionaire confirmed he had at least a dozen limited partners that included Maryland billionaire Mitchell Rales and NBA legend Magic Johnson among them.
Harris projects the Commanders will earn $380 million a year by 2032 — up from the $173 million the team drew in 2022. That money includes dollars generated from ticket sales, sponsorships, parking and other team activities. Harris’ prospectus also projected the Commanders could earn $466 million annually if the team has a new stadium in place by then.
Harris, the managing owner of the NBA’s Philadelphia 76ers and NHL’s New Jersey Devils, is banking on an increase in revenue in large part because of Snyder’s exit, ESPN reported.
The document predicts that the state of Virginia “will offer the best incentive package — potentially up to $1.5 billion” for a new stadium — much more than the dollar amount that lawmakers appeared ready to commit in a bill last year before the legislation died.
A year ago, Virginia lawmakers decided to table a bill that would have provided $320 million — negotiated down from $1 billion — to fund the Commanders’ next stadium project after meeting resistance to the idea in part because of the workplace scandals surrounding Snyder.
In March, Commanders President Jason Wright told The Washington Times that Snyder’s departure would be a “substantial boost” for the franchise.
“When there’s an ownership change, we’ll be able to absorb the momentum of that,” Wright said. “The revenue will increase. And we’ll see the business accelerate, which is not super interesting to the fans … but the importance of being successful as a business is then we can invest in football. … A successful, lucrative business funnels money toward football, which builds championships.”
To increase revenue beyond the lift from Snyder’s exit, according to the report, Harris could look to secure a new naming rights deal for the team’s stadium in Landover, Maryland. Harris’ document notes that the Commanders’ naming rights deal earns $7.6 million annually from FedEx, but that new ownership can cancel the deal upon “a change of control.” The report estimates a new naming rights deal could be worth at least $30 million annually — “and could be significantly higher given the DC market and strong corporate presence.”
Harris also reportedly plans to invest $88 million to “help establish ownership’s commitment to fan/player experience.” That funding will go toward updating video boards at FedEx Field and updating the team’s locker room. The prospectus also projects $43 million in spending to upgrade the team’s loge boxes and suites — and notes another $100 million is needed for “immediate structural repairs” to FedEx Field.
The prospectus details Harris’ own track record with the 76ers — as well as how well the Commanders used to perform. It touts that Harris helped transform the 76ers from 27th in ticket sales as of 2014-15 to fifth in 2021-22. And it notes how the Commanders have “ample room to grow” given the team’s history and a market that helped the team rank first in attendance in 2008.
The prospectus detailed how the Commanders’ attendance has “failed to recover” in the wake of the team’s workplace scandals — more than 40 former employees said they experienced or witnessed sexual harassment — coming to light in 2020. Harris’ prospectus reportedly views the Commanders as having a “disengaged” fan base currently.
The Commanders historically ranked tops in the league “across all local revenue metrics and attendance,” the prospectus states, according to ESPN. “However, the team has significantly spiraled as a result of allegations against current ownership. As ownership changes, we see opportunities to substantially drive local revenue and bring the team back to a top NFL market.”
A new stadium likely would help boost Washington’s goal of driving revenue. Harris’ prospectus puts a timeline of moving into a stadium by 2031 — which would be later than the team’s target date of 2027, when FedEx Field’s lease expires. Though the document notes a move could be done earlier, the Commanders’ new brass must sort through local jurisdictions to find which deal makes the most sense for them.
D.C. Mayor Muriel Bowser tweeted last week that the Commanders should return to the District at the site of the old RFK stadium, while a press secretary for Maryland Gov. Wes Moore also advocated on social media for the team to stay in the state. Harris’ prospectus, according to ESPN, predicted Virginia would offer the best incentives — with $1.5 billion setting a record for public funds committed to a stadium project.
If a new stadium is built by 2031, Harris’ group projects $1.05 billion in total team revenue in 2032-33 — a soaring increase from the $545 million Washington earned in 2022. That $545 million includes the $383 million the team earned from the NFL’s television contracts and $58 million it earned from gate revenue. The latter, the prospectus noted, represented a decline of two-thirds since 2008 when accounting for inflation.
Without a new stadium, the prospectus projects the Commanders to still earn $959 million in 2032-33 under Harris’ ownership.
Though Harris has lofty goals for the Commanders, he first must receive approval from the NFL. League owners meet next week, though a source with knowledge of the situation said they’ll only be briefed on Harris’ agreement to buy the franchise — with a vote expected in the coming months.
Multiple outlets, including ESPN, reported that Harris’ deal could face obstacles due to the complexity of the agreement. Sources told the sports network, for instance, that Harris’ bid would not receive approval from owners “if not for the disdain for Snyder driving the sale.”
Harris agreed to purchase the Commanders for a record $6.05 billion.
• Matthew Paras can be reached at mparas@washingtontimes.com.
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