Is Dan Snyder Actually Going To Sell The Washington Commanders?!

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Hey Friends,

Dan Snyder has been one of the worst owners in sports history.

In 1999, he sold his communications company for $2.1 billion, borrowed $300 million from a European bank, assumed an additional $150 million of debt on the stadium, and paid a then-record $800 million for the Washington-based NFL franchise.

Of course, NFL valuations have only gone up, and it turned out to be an excellent investment. But still, controversy has followed Dan Snyder ever since.

For example, Snyder has faced allegations of sexual assault. He has been suspended and fined more than $10 million by the league office. The team is currently facing a criminal investigation for alleged financial impropriety. Their stadium is falling apart, and the team has only won two playoff games over the last 20+ years.

And that’s without even mentioning the time he sued season ticket holders who could not pay during the 2008 recession, despite publically claiming that the team had a season ticket wait-list with more than 200,000 people on it.

But you get the point: Snyder’s been (historically) bad, and fans want him to leave.

So when news broke last week that Dan Snyder had retained Bank of America to explore a sale of the team, many people were excited.

The details are still pretty sparse, but Snyder is reportedly willing to sell 100% of the team for $7 billion, which would represent the most expensive sports team sale in history — and a ridiculous multi-billion-dollar profit for Snyder himself.

Washington Commanders Valuation (2002 to 2022)

But antics aside, a sale of the Washington Commanders is interesting for several reasons.

First, in addition to Snyder reportedly wanting $7 billion for the team, FedEx Field is falling apart, and a new owner would also need to build a new stadium.

So while the $7 billion sale is likely to include 400+ acres of land that Dan Snyder already owns — 264 acres around FedEx Field and 150 acres at the team’s headquarters in Ashburn, Virginia — a new ownership group will still need to put ~$2 billion-plus into stadium construction (local government already said they won’t pay).

That could bring the final price of the acquisition closer to $9 billion or $10 billion.

But secondly, and perhaps more importantly, who will buy the team? That’s a question that is often speculated, and while many people believe the obvious answer is billionaire Amazon founder Jeff Bezos, I wouldn’t be so sure that will happen.

Bezos has plenty of money ($120 billion). He just completed a $40 million renovation of his DC home. He already owns the Washington Post. His name has been mentioned in several recent sports team sales, and Amazon is heavily investing in the NFL’s future.

But as Peter King mentioned this morning, Dan Snyder hates The Washinton Post, and many people think that alone would stop him from selling to Jeff Bezos.

And last but not least, I think there is a slightly higher probability than most that Dan Snyder ends up using this momentum to sell a portion of the team — not all of it.

Why? Well, it’s important to remember that Snyder took on an additional $450 million of debt last year to fund the purchase of the remaining 40.5% of the Washington Commanders that the Snyder family didn’t already own (before the purchase, Dan Snyder owned 40.459% of the team, his mother, Arlette, owned 6.5% and his sister, Michele, owned 12.55% — but now they own 100%).

So with the valuation increasing drastically over the last few years, maybe the family wants to sell a small portion of the team, raise some money, and pay down their debt.

Have a great day. I’ll talk to everyone tomorrow.

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