Dan Snyder reaches agreement to sell Washington Commanders for $6.05B, sources say
A contract must be signed, and receive NFL approval, but source intel points to new Commanders ownership including two billionaires with local ties.
Commanders Sale
Embattled Washington Commanders owner Dan Snyder has reached an agreement to sell his NFL team for a record sum, according to WUSA9 sources.
Thursday afternoon, several reports said Snyder had a deal in principle with a group of billionaires, two of whom have roots in the DMV. A WUSA9 source says Snyder has reached an agreement with the Josh Harris group to sell the team for $6.05 billion.
The group that sources say would take over ownership from Snyder includes Philadelphia 76ers owner Josh Harris, Washington-area billionaire Mitchell Rales and NBA great Magic Johnson. The $6.05 billion deal is the highest price paid for a North American professional sports franchise. Forbes estimates the team is worth $5.6 billion.
The deal would be non-exclusive, meaning someone else could come into the ownership group.
The sale of the Commanders is pending the execution of a contract and requires approval from 24 of 32 owners to pass. The last NFL team sale, the Denver Broncos, was unanimously approved.
The earliest new ownership could take over is during the NFL's owners meeting on May 22 in Minneapolis.
When asked for comment about whether the team had been sold, a spokesperson for the Commanders said, "We aren’t in a position to comment."
Who are the new owners?
Two of the reported soon-to-be owners have DMV ties. Harris is a Chevy Chase native, who attended the Field School in Northwest, D.C. Rales grew up in Bethesda, graduating from Walt Whitman High School.
Rales would eventually go on to co-found the D.C.-based manufacturing company Danaher, with his brother, in 1984. Forbes Magazine says the Montgomery County native is worth $5.6 billion dollars.
Rales is perhaps best known for Glenstone, a modern art gallery he and his wife, Emily Rales, own in Potomac. In 2019, Rales did his first television interview with CBS Sunday Morning, at the property where he also lives. Glenstone is a 230-acre site with more than 1,300 works of art, according to CBS. Admission is free to the public.
The Rales family is no stranger to sports either.
In the early 1990s, Rales’ brother, Steven, considered joining Peter Angelos’ Baltimore Orioles ownership team, according to the Washington Post. At the time, both Rales brothers also owned the station that would go on to become the sports radio station WTEM Team 980.
Johnson, a basketball Hall of Famer who has become a prominent executive, is already involved in sports ownership with stakes in Major League Baseball's Los Angeles Dodgers, Major League Soccer's Los Angeles F.C. and the WNBA's Los Angeles Sparks. He was also part of Harris' unsuccessful bid to buy the Denver Broncos, who were instead sold to a group led by Walmart heir Rob Walton for a record $4.65 billion.
How did we get here?
Amid multiple investigations into workplace conduct and potential financial improprieties, longtime owner Dan Snyder and his wife Tanya began exploring selling part or all of the team in the fall. Any sale would need to be approved by three-quarters of NFL owners.
Snyder's ownership has been a hot-button issue for years since several employees came out about workplace harassment, which prompted a league investigation and a $10 million fine. When no written report of Beth Wilkinson's investigation was produced, the U.S. House Committee on Oversight and Reform launched its own review of the situation, which included a referral to the Federal Trade Commission.
The league retained former U.S. Attorney Mary Jo White to investigate, and that probe is ongoing. At a league meeting in October, Indianapolis Colts owner Jim Irsay said there was "merit to remove" Snyder — who then hired Bank of America Securities two weeks later.
Snyder and his attorneys have demanded that NFL owners and the league indemnify him against future legal liability and costs if he sells the team, a person told the AP. Two owners said they were angered by Snyder’s demand for indemnification but told the AP that they want to let the sale process play out before taking any action.
Dallas Cowboys owner Jerry Jones said Snyder's situation has changed their relationship.
“I think that it’s a little more formal, but I think it’s that way because of the various issues that are involved here,” Jones said. “It’s not ‘lovey-dovey,’ but it’s not really strained in any way.”
Other Investigations
Snyder is facing other civil suits and investigations.
The Attorney General for the District of Columbia filed two suits in civil court against the Commanders late last year: one for a scheme to cheat fans out of ticket money and another naming Snyder, Commissioner Roger Goodell and the league, saying they colluded to deceive fans about an investigation into the team’s workplace culture that ended with a $10 million fine and no written report. The Commanders settled with the state of Maryland, agreeing to return security deposits to former season ticket holders and pay a $250,000 penalty.
What does new ownership mean for a new stadium?
Now that The Commanders will likely have new owners, where do stadium talks stand? We asked Team President Justin Wright for answers.
"One of the exciting things about this transition process is that we're going to have to calibrate that vision against what new owners will want to do. It's going to be their project," Wright said. "We are in an interesting trade-off situation between speed and acceleration of getting it done, with needing to calibrate the vision and heart of a new ownership group."
There have been discussions of a new stadium in Virginia, D.C. and Maryland over the last couple of years. Wright said there are positives to each stadium location.
"I think everybody knows what's possible at RFK, you've seen what's happened around Nats Park, and the development of that community. I think there are thoughtful leaders in D.C. who think about things like gentrification alongside economic development," Wright said.
But Wright sees positives in Maryland and Virginia, too.
"Then you've got the Blue Line Corridor plan from County Commissioner Alsobrooks and Prince George's County leadership that is about catalyzing a community that actually has great wealth, is one of the wealthiest Black counties in America, but it's spotty. And there are opportunities across Virginia."
We asked Wright about a recent phone call between NFL Commissioner Roger Goodell and D.C. Mayor Muriel Bowser about the future of the RFK site. He remained tight-lipped.
"I could say a lot about the league and their support, but I won't," Wright said. "These are conversations and efforts that have to be discreet. It's the thing I should talk the least about and I've already shared too much," Wright said.
Regardless of what the final decision is, the clock is ticking. The lease expires on FedEx Field in 2027.
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