If Dan Snyder is indeed intent on cashing in his chips, a sale of the Washington Commanders could shatter the record established in August by the Broncos.
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Maybe Dan Snyder can take a hint after all.
But there’s no pity allowed for the embattled Washington Commanders owner seemingly on the verge of being forced out of the richest sports league in history.
Snyder might be the despised one who leaves in disgrace but sells his NFL franchise for a record money grab.
Of course, that’s not exactly justice. But if the Denver Broncos could fetch $4.65 billion earlier this year in the sale to Walmart heir Rob Walton & Co., what does that make the Commanders worth?
Let the floor for the bidding start at $5 billion, with $6 billion not out of the question.
One thing seems certain: If Snyder is indeed intent in cashing in his chips, the sale of the once-signature franchise in the nation’s capital – which sold for $750 million to Snyder and partners in 1999 – will shatter the record that was just established in August by the Broncos.
“I would wager any amount on that,” an NFL owner, speaking on the condition of anonymity, told USA TODAY Sports. The owner did not want to be identified because he is not privy to details regarding the possibility that Snyder is selling out.
“It’s Washington D.C.,” he added. “That has a unique appeal. It’s special.”
In other words, step right up, Jeff Bezos and Jay-Z. The Washington Post reported Thursday that Bezos, who founded Amazon (and also owns The Post), and Shawn Carter, the entertainment mogul known as Jay-Z, are interested in exploring a potential purchase of the Commanders.
No doubt, other bidders in recent sales of other teams could emerge as prospects.
Snyder announced Wednesday that he has enlisted Bank of America Securities to consider potential transactions, but fueled intrigue in that he did not declare that he is fully selling the franchise – leaving open the possibility he is seeking partners to invest in minority stakes for the team.
It seems unlikely, though, that a major securities firm would be retained for selling minority shares.
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No, this seems more like the beginning of the glorious end game that frustrated followers of the franchise have been waiting for, and a long time coming.
Snyder, the subject of ongoing investigations by the NFL and a Congressional oversight committee relating to a toxic workplace culture that includes allegations of sexual harassment, has previously contended that he wouldn’t sell the franchise. In a recent ESPN.com report, it was maintained that Snyder has collected “dirt” on the NFL and other owners that presumably would deter the league from pursuing the drastic measure of voting him out.
Then again, this is the same Snyder who for many years was defiant in maintaining he would not drop the racially offensive team name – “NEVER, you can use caps,” he once declared to USA TODAY Sports’ Erik Brady – but relented in 2021 amid pressure from sponsors.
“Maybe somebody will make him an offer that he can’t refuse,” sports consultant Marc Ganis told USA TODAY Sports.
The decision to sell could hinge largely on the fizzled efforts for a new stadium. Lawmakers in the District of Columbia, Maryland and Virginia apparently won’t entertain the prospect of pushing for public money as long as Snyder controls the team. A new owner, though, could revive the once-robust revenue streams for the team that would be generated by a new stadium – especially if it were privately financed.
The franchise’s value also would be bolstered by its presence in the nation’s capital, with access to the hub of political power – and the many corporate entities located in the region for political access.
Of course, the NFL itself is the biggest reason to buy in. The league has long-term media contracts through 2033 that total about $110 billion, with five broadcast partners – providing live content like no other entity. Also, labor peace is secured with the NFL Players Association with a collective bargaining agreement through 2030.
Such stability has to be inviting to the potential suitors who can afford it.
According to Forbes, the average NFL franchise is valued at $4.47 billion, topped by the $8 billion valuation for the Dallas Cowboys. Washington ranks sixth for value at $5.6 billion.
More context comes with recent sales. David Tepper purchased the Carolina Panthers in 2018 for $2.28 billion. Now the team is valued at $4 billion. Terry and Kim Pegula paid $1.4 billion for the Buffalo Bills in 2014. Now, with a public-financed stadium in the works, the franchise is valued at $3 billion.
These rising franchise values are key reasons NFL owners are willing to give up nearly half (48.5%) of the year-to-year revenues to players, as late union leader Gene Upshaw used to remind us.
“The average value of an NFL franchise has doubled over the last seven or eight years,” said Ganis, president of Sportscorp, Ltd. “Now look at the NFL’s trajectory over the next seven to 10 years.”
That’s a great selling point. But if Snyder, who bought out his minority partners in 2021 to secure 100% of the franchise, is looking for new investment partners while hanging onto the franchise, it would be a tough sell at such mega-dollars.
Unless, of course, the deal is similar to the one that Steve Bisciotti struck years ago with the cash-strapped, then-Baltimore Ravens owner Art Modell … and included an eventual path to full ownership.
