Washington’s leaders moved a step closer to a new ownership after a group of billionaires including Josh Harris and NBA legend Magic Johnson made an “official $6 billion bid.”
The NFL team’s future has been up in the air since embattled owner Dan Snyder enlisted Bank of America to explore a possible sale of the team last year, and so far, no interested party has reached its high valuation.
Now, though, ESPN insider Adam Schefter reports that the group led by Harris and Mitchell Rales have now officially made their fully funded offer to Snyder.
Harris already owns the NBA’s Philadelphia 76ers and the NHL’s New Jersey Devils, while he’s a part-owner of the Premier League’s Crystal Palace team as well.
Meanwhile, Rales has no prior history of owning a sports franchise, but his net worth is estimated at $5.5 billion.
Magic Johnson (L) teams up with Josh Harris (R) in a bid to buy the Washington Commanders
A fully funded $6 billion bid has been made to current owner Dan Snyder (pictured)
The 58-year-old Snyder has faced calls from fans to sell the struggling team for years, but pressure has been building since 2020 after accusations of sexual harassment, financial irregularities, and obstruction of the team and Snyder himself.
Allegations of sexual harassment against team employees ranged from inappropriate comments to the creation of a behind-the-scenes lewd video from a fan club’s calendar photo shoot in 2008, according to Washington Post 2020 report that first revealed the allegations. A former fan also alleged that Snyder suggested she join his “best friend” in a hotel room in 2004 so they could “get to know each other.”
Snyder denied the claim in a 2020 statement: “I want to state unequivocally that this never happened.”
While the leaders fired several individuals accused of sexual harassment and fined the NFL $10 million, Snyder defiantly denied the charges against him in the face of multiple investigations.
Both Snyder and the leaders are also being investigated by former US Attorney Mary Jo White, who was appointed by the NFL to investigate allegations that arose from congressional review into hostile workplace allegations. The oversight committee’s investigation was launched in response to perceived failures in the league’s investigation, such as the NFL’s decision to relinquish an official written report.
Specifically, former team employee Tiffany Johnston alleged to the oversight committee that Snyder grabbed her thigh at a team dinner and pressured her into getting into a limo.
Snyder denied the allegation, which White is now investigating.
Another woman, Melanie Coburn, said she was at Snyder’s home in Aspen when he hosted a party with prostitutes for the male staff.
“I went back to Dan Snyder’s house only to be sent to my room downstairs and told to stay there,” Coburn told the House Oversight Committee. “I learned later from a colleague that he was there because the men invited the prostitutes.”
Monday , Washington Times reported that Snyder refused to speak with White, though a team spokesperson declined to consider that when asked on the record.
And these are not the only legal problems Snyder faces Litigation and other civil investigations.
The District Attorney of the District of Columbia filed a pair of civil lawsuits against the Leaders over an alleged scheme to defraud fans out of season ticket security deposits and accusations that the club, Snyder, and NFL Commissioner Roger Goodell deceived fans about the initial investigation. In hostile claims in the workplace.
The leaders also settled with the State of Maryland over the aforementioned security deposit plan, agreeing to pay a $250,000 fine.
the next Washington Post A recent report that Snyder was seeking compensation if he sold the team, ESPN It reported on March 1 that FBI and IRS agents were investigating allegations that Snyder took out a $55 million loan without the knowledge of his then-minority associates.
After years of wrangling, Snyder bought out minority owners Dwight Scharr, a homebuilder executive, Black Diamond Capital CEO Bob Rothman, and FedEx founder Fred Smith in the spring of 2021. The trio had previously filed an injunction hoping to allow him to sell their 100% stake. 40.5 percent of the team, which Snyder eventually bought after the NFL agreed to waive debt limits, allowing him to take out a $450 million loan from Bank of America.
Now a federal grand jury has issued subpoenas regarding the team’s finances, according to ESPN.
The former minority partners have reportedly demanded an NFL investigation into the alleged $55 million loan during a secret arbitration hearing, but at least one source familiar with the proceedings told ESPN that Schar, Smith and Rothman believe league commissioner Roger Goodell and general counsel Jeffrey Bash stood by. with Snyder.
If Snyder had taken out the $55 million loan without informing his former minority partners, he would have violated the team’s shareholder agreement, according to documents obtained by the Associated Press.
Bank of America officials repeatedly requested proof that the board approved the loan, only to close the deal without receiving any such confirmation. Documents obtained by the AP show that one of the team’s attorneys acknowledges in a letter that board approval was never granted.
A Bank of America spokesperson declined to comment to DailyMail.com.
Documents show Less than a week after Schaar, Rothman, and Smith pushed NFL arbitrators to investigate the loan, the NFL moved to end arbitration proceedings.
Frustrated, Schar, Rothman and Smith hesitantly agreed to let Goodell mediate the dispute, according to ESPN.
The NFL never investigated the loan, and Snyder was never sanctioned for allegations of financial misconduct.
Leaders attorney John Brownlee did not respond to ESPN’s questions about the alleged $55 million loan, but said the team is cooperating with the Justice Department’s request for financial records.
The team has been pretty terrible since Snyder became owner in 1999. Washington, a three-time Super Bowl winner and five-time NFL champion, has reached the postseason only six times during Snyder’s tenure. The current head coach, Ron Rivera, is Snyder’s tenth since taking control of the team.
Throughout Snyder’s tenure, the team has been criticized for its now-former nickname, the Redskins, which is considered offensive to Native Americans.
The Washington team was finally rebranded in 2022 as the Chiefs after dropping its name Redskins in 2020 under a wave of scrutiny in the wake of the George Floyd protests.
