The Washington Commanders are one step closer to a new owner after a billionaire group including Josh Harris and NBA legend Magic Johnson “officially made a $6 billion offer.”
The NFL team’s future has been up in the air since embattled owner Dan Snyder hired Bank of America last year to explore a possible sale of the team, and until now no interested party had matched its lofty rating.
Now, however, ESPN insider Adam Schefter reports that the Harris and Mitchell Rales-led group has now officially submitted their fully-funded bid to Snyder.
Harris already owns the NBA’s Philadelphia 76ers and the NHL’s New Jersey Devils, while also being a part owner of the Premier League’s Crystal Palace.
Rales, on the other hand, hasn’t owned any sports franchises in the past but has an estimated net worth of $5.5 billion.
Magic Johnson (L) teams up with Josh Harris (R) to buy Washington Commanders
A fully funded $6 billion offer was made to current owner Dan Snyder (pictured).
Snyder, 58, has faced calls from fans to sell the ailing team for years, but pressure has mounted since 2020 amid allegations of sexual harassment, financial inadequacy and disability against the team and Snyder himself.
While the Commanders have fired many of those accused of sexual molestation and paid a $10 million fine to the NFL, Snyder has defiantly denied allegations against him, despite multiple investigations, including an investigation by Congress.
Both Snyder and the Commanders are being investigated by former U.S. Attorney Mary Jo White, who has been hired by the NFL to investigate allegations arising from a congressional review of hostile job claims and a Federal Trade Commission referral for allegations potential business misconduct .
On Monday, The Washington Times reported that Snyder refused to speak to White, although a team spokesman refused to open up when he was logged.
And those aren’t the only legal issues for Snyder, who faces more civil lawsuits and investigations.
The Attorney General for the District of Columbia has filed two civil lawsuits against the commanders over an alleged plan to cheat fans out of season ticket deposits and allegations that the club, Snyder and NFL Commissioner Roger Goodell misled fans about the initial investigation into hostile ones demands in the workplace.
That NFL investigation was resolved in 2010 with a $10 million fine against the team and Snyder’s agreement to retire from club operations, but the league never produced a written report, citing witness confidentiality.
The commanders have also settled with Maryland on the aforementioned bail system and have agreed to pay a $250,000 fine.
Prior to the Republican takeover of Congress, the previously Democratic-led Oversight Committee investigated the commanders over allegations of sexual harassment, leading to the exposure of alleged ticket deposit fraud.
Snyder spoke to the committee, albeit behind closed doors, while Goodell testified publicly about the team’s investigation.
Following the Washington Post’s recent report that Snyder was seeking compensation in the event the team was sold, ESPN reported March 1 that FBI and IRS agents are investigating allegations that Snyder took out a loan of raised $55 million.
In the spring of 2021, after years of wrangling, Snyder bought out minority owners Dwight Schar, a home construction manager, Bob Rothman, CEO of Black Diamond Capital, and Fred Smith, founder of FedEx. The trio previously filed an injunction hoping to be allowed to sell their 40.5 percent stake in the team, which Snyder eventually bought after the NFL approved a debt forgiveness that allowed him to take out a loan of Raise $450 million from Bank of America.
Now a federal grand jury has issued subpoenas related to team finances, according to ESPN.
The former minority partners had reportedly called for an NFL investigation into the alleged $55 million loan during a confidential arbitration hearing, but at least one source with knowledge of the proceedings told ESPN that Schar, Smith and Rothman told league commissioner Roger Goodell and the General Counsel Jeffrey Pash believed on Snyder’s side.
If Snyder had taken out the $55 million loan without notifying his now-former minority partners, it would have violated the team’s shareholder agreement, according to documents obtained by the AP.
Bank of America officials repeatedly demanded proof that the board had approved the loan just to close the deal, without receiving such confirmation. Documents obtained by the AP show a letter from a lawyer for the team acknowledging that board approval was never granted.
A spokesman for Bank of America declined to comment to .
Less than a week after Schar, Rothman and Smith urged NFL arbitrators to investigate the loan, the NFL moved to end the arbitration, documents show.
Frustrated, Schar, Rothman and Smith reluctantly agreed to allow Goodell to settle the dispute, according to ESPN.
The NFL did not conduct an investigation into the loan, and Snyder was never fined for the financial misconduct claims.
The commander’s attorney, John Brownlee, did not respond to ESPN questions about the alleged $55 million loan, but said the team was cooperating with the DOJ’s request for financial records.