Dan Snyder has a basically agree Selling the Washington Commanders to a group led by Josh Harris and Mitchell Rales contains Magic Johnson a record $6.05 billion for a North American professional sports team.
It’s the biggest step yet in the process of Snyder selling the once-legendary NFL franchise he’s owned since 1999. But it’s far from the last before the group takes control.
WHAT’S HAPPENING NOW?
A fully funded, non-exclusive agreement is currently in place but has not yet been signed by the buyer and seller parties. You will work out the fine print with attorneys and enter into a binding agreement to complete the sales process at the team level.
The league then engages in a thorough screening process, including background checks and an assessment by the Finance Committee. Once everything is settled, it goes to the owners for a vote, requiring three quarters (24 out of 32) to approve the sale and make it official.
That could happen as early as the next owners’ meeting in Minnesota in late May, although it would be in no way alarming if the process took longer.
WHO ARE THE NEW OWNERS?
Harris, 58, is best known in the sport for owning the NBA’s Philadelphia 76ers and the NHL’s New Jersey Devils with partner David Blitzer, and he is also involved with Crystal Palace football club in the Premier League. Born in Chevy Chase, Maryland, he grew up in the Washington area and made his money at a private equity firm.
Last year, Harris led a group that tried to buy the Denver Broncos before they were sold to Walmart heir Rob Walton for a then-record $4.65 billion.
Rales, 66, also grew up outside the country’s capital and founded Danaher Corporation, a science and technology company, with his brother. He and his wife also founded the private Glenstone Museum in Potomac, Maryland. Rales joined Harris’ offer in early March.
Johnson, 63, could be the face of ownership after joining the group in late March. The well-known basketball Hall of Famer-turned-successful executive previously owned part of the Lakers and is currently on Major League Baseball’s Los Angeles Dodgers, Major League Soccer’s Los Angeles FC and the WNBA’s Los Angeles Sparks involved.
WHAT’S THE PRICE?
The $6.05 billion price tag for the Commanders is higher than the $5.6 billion Forbes put for the team, but it’s in line with the figure Snyder was looking for the sale.
Not only is it more expensive than the Broncos, it’s also higher than them Mat Ishbia paid $4 billion for the Phoenix Suns of the NBA and Mercury of the WNBA. Steve Cohen bought the New York Mets for an MLB-record $2.42 billion in 2020. When Fenway Sports Group bought the NHL’s Pittsburgh Penguins No dollar figure was released in 2021, although Forbes valued the team at $845 million.
Harris, Rales and Johnson weren’t the only group to reach the final stages to get the Commanders. Canadian investor Steve Apostolopoulos also submitted a fully funded $6 billion bid.
Earlier this week, Amazon founder Jeff Bezos decided not to make an offer — maybe he’ll wait until the Seahawks are available? — and that sped up the process of Snyder deciding to sell to the Harris Group.
WHAT HAPPENS TO THE TEAM?
It’s not clear if new owners will have the option, or interest, in renaming the Washington team, which only became Commanders in early 2022. Team President Jason Wright has said he would like to stay in the role for which he was hired by Snyder in 2020.
Ron Rivera is expected to remain coach and head of player staff, along with general manager Martin Mayhew and the rest of the front office. If the Commanders get off to a bad start or miss the playoffs, changes could come as the new owners get a feel for the organization.
The greatest task for the long-term future of the franchise is to reach an agreement on a new stadium. The team’s lease on FedEx Field in Landover, Maryland, expires in 2027, and the stadium, which opened in 1997 and was hastily completed, hasn’t aged well.
Virginia has long been the frontrunner in landing the new stadium, but it was Snyder who led the negotiations, and lawmakers there abandoned a bill to fund one last year.
The site of old RFK Stadium — the team’s longtime home in the District of Columbia — is the dream spot for many, but it comes with state hurdles. There is land across the Anacostia River from Nationals Park that might be an option.
Or the Harris and Rales services to Maryland could keep the team there, perhaps in a location that’s closer to public transit and easier to navigate.
The decision is crucial for a franchise that hasn’t won a championship in over 30 years and is desperate to bring back fans who will already be given a go-ahead when Snyder is gone.
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