The Josh Harris-led group seeking to buy the Washington Commanders has passed a proposed $6.05 billion purchase of the NFL team that includes language to partially compensate outgoing owner Dan Snyder for future litigation stemming from multiple pending investigation into his tenure, according to a person close to Harris.
The provision would partially protect Snyder from legal liability based on the results of the investigations.
Sports first the bid was reportedly passed in the NFL. The move is relatively unusual because sales agreements are usually only sent to the league by the selling team once an agreement is signed.
What to know about where things stand
The person close to Harris said there were some issues that needed approval from the league, such as indemnification, before the contract could be signed and that’s why it was passed on to the NFL.
- The indemnification provision is between Harris and Snyder, not the league. Snyder is seeking that cover from the buyer and the league.
- Why the Harris group needed the league’s approval is unclear, but it has been widely reported that Snyder is out of touch with the league.
- The developments come as the league awaits Mary Jo White’s report on investigations into whether Snyder harassed a female employee, and whether the team withheld revenue from the other 31 clubs.
DEEP
Dan Snyder is selling Commanders, but investigations are ongoing. Here everyone stands
Despite all this, Harris’s offer is still not exclusive, with a rival group led by the Canadian businessman Steve Apostolopoulos still hovering in the background. It is not clear if his bid has the right financing. Harris’ bid was bolstered by a partnership with local billionaire Mitchell Rales, each of whom has a higher reported net worth than the Canadian.
Backstory
Snyder bought the team and FedEx Field in 1999, launching a tenure that some consider the worst ownership in professional sports, plagued by poor play on the field and scandal off it. The league fined the team $10 million in July 2021 and temporarily banned Snyder from the club following findings of a toxic culture on the team, including rampant sexual harassment.
Snyder also clashed with his former partners, whom the team owner accused of dirty tricks, including charging that they planted false stories linking him to sex trafficking. The dispute ended with Snyder buying their 40 percent stake for $875 million.
The federal court in the Eastern District of Virginia is also investigating the team’s bank fraud, while the attorney general of Washington, DC, is suing the team – and the NFL – for covering up sexual harassment at the club.
In November, weeks after Indianapolis Colts owner Jim Irsay spoke out against Snyder, suggesting that leaving was an option, the Commanders released a statement that the club had hired an investment bank to consider strategic options. Amazon founder Jeff Bezos was immediately considered the front-runner, but Snyder would not face him because of Bezos’ ownership of the Washington Post, which uncovered sexual harassment on the team.
While Bezos may have been allowed into the process recently, Harris was seen as the front-runner at the time because of his sports team ownership, his previous bid with the Denver Broncos and his acquisition of Rales. Harris owns the Philadelphia 76ers, New Jersey Devils and pieces of the Pittsburgh Steelers and Crystal Palace FC.
(Photo: Andy Lewis / Icon Sportswire via Getty Images)
