Jeff Bezos, the founder of Amazon, appears to be the ideal candidate to become a new owner of an NFL franchise. He is currently the third-richest person in the world, and he already has close ties to the NFL. In March of 2021, Amazon signed an 11-year deal with the NFL to become the exclusive provider of Thursday Night Football. According to CNBC, Amazon will pay the NFL roughly $1 billion per year for broadcasting rights.[1]
The majority of NFL owners would probably welcome Bezos to their ranks with open arms. After all, the Amazon Prime deal is making every owner even wealthier than they were before. However, there is at least one disgruntled owner who may feel very differently from his peers.
The Athletic reported that Daniel Snyder, the owner of the Washington Commanders franchise, has barred Bezos from bidding on the team. Bezos, who has explored the possibility of acquiring the Commanders from Snyder, owns The Washington Post. Snyder believes that The Washington Post has wanted to oust him from the NFL for years. The newspaper has published several stories documenting a toxic culture that allowed for many instances of sexual harassment to occur during Snyder’s ownership tenure. This coverage ultimately helped build immense pressure around Snyder to sell the franchise.[2]
A source close to Bezos confirmed to The Athletic that the franchise’s banker, Bank of America, refused to give Bezos access to the team’s finances. In November, Snyder announced that the organization had retained Bank of America to run the bidding process that could result in a full or partial sale of the team. Snyder was reportedly seeking $7 billion for the Commanders. That figure seems to have dropped to around $6 billion following the first round of “disappointing” offers. A $6 billion sale is still $1.35 billion more than the Denver Broncos sold for in 2022.[3]
The ownership group led by Walmart heir Rob Walton purchased the Broncos for the highest price ever paid for a U.S. professional sports team. Walton also became the wealthiest owner in NFL history.[4] If Bezos is successful in buying the Commanders, he would quickly assume that title by personally doubling Walton’s net worth. While Denver is a smaller market than D.C. and the surrounding DMV (Delaware-Maryland-Virginia) region, the Commanders’ attendance and market reputation are among the worst in the NFL.[5]
The recently released NFLPA Report Cards ranked Washington 32nd (last) in the NFL based on a number of categories rated by player respondents. Besides their strength coaches, who tied for 1st in the NFL with an “A+”, the Commanders were graded an “F” (tied for last at 29th) for the “Treatment of Families,” an “F-“ (tied for last at 30th) for their “Training Room,” a “D” (31st) for their “Training Staff,” an “F-“ (32nd) for their “Locker Room,” and an “F-“ (32nd) for “Team Travel.”[6] These poor scores do not reflect well on Snyder’s leadership and commitment to workplace issues. Furthermore, they likely substantially diminish the team’s overall value and hurt Snyder’s chances at fetching a desirable, yet unrealistic price.
There is a real possibility that Dan Snyder may decide to maintain control of the Commanders franchise if bids do not reach what he considers fair value. Snyder bought the team in 1999 for $750 million using the fortune he made from starting a marketing business. Approximately two decades of scandals and controversy have made it clear that Snyder will do anything to avoid parting with his beloved franchise unless it’s on his terms.
Could next week’s annual NFL owners’ meeting lead to a resolution of this saga? The Commanders and Snyder are subjects of NFL-led investigations into sexual harassment, workplace misconduct, and the withholding of revenue that was supposed to be shared with the other owners. Mary Jo White, former Securities and Exchange Commission chair, was hired over a year ago to lead these probes. However, we are still waiting for answers. NFL Commissioner Roger Goodell has reiterated that the league has no control over when the investigations will be complete. Many people believe that the results may never be shared if Snyder sells. Others allege that the findings may be used as a threat in a scenario where he refuses to sell.[7]
Dan Snyder, Owner of the Washington Commanders – Image from Pro Football Network
In an unprecedented statement during the NFL’s fall meetings in 2022, Indianapolis Colts owner Jim Irsay became the first owner to indicate that there is “potentially” enough support from other owners to have Snyder removed. It would take 24 of the 32 owners to vote Snyder out. Such a vote has never occurred in any U.S. professional sports league. That result would also set a precedent for taking another owner’s team away. This consequence is surely a crucial factor each owner will consider before casting a vote that will force Snyder to sell his team.[8]
Although not formally on the agenda for the upcoming owners’ meeting, Snyder will likely argue that he cannot get a fair price for the Commanders if the topic arises. Bidders know that he is being forced to sell. The fact that NFL owners want to see Snyder obtain the highest possible sales price plays in his favor because the Commanders’ valuation affects how every other team is appraised.[9]
The NFL may persuade Snyder to let Bezos bid. It’s equally possible that Snyder is playing hardball with Bezos in hopes that he will make a last-ditch offer somewhere near Snyder’s $7 billion goal. A large bid from Bezos may even entice other candidates to jump into the mix and drive the price up even higher.[10]
There are new signs that activity around a potential sale has “ramped up” over the past few weeks. The Washington Post reported that Bezos has hired Allen & Company, an investment firm, in order to evaluate a potential bid for the franchise.[11] According to The Athletic, Bezos may also be pondering whether to sell The Washington Post (possibly to appease Snyder).
Additionally, the Commanders’ recent free-agent signings have provisions in their contracts that could hint at Snyder’s planned sale date. Normally, NFL teams pay out at least a portion of signing bonuses within 15 to 30 days of the transaction date. Interestingly, the Commanders have extended the payout date by two months for this free-agent cycle. Defensive tackle Daron Payne, quarterback Jacoby Brissett, and offensive lineman Andrew Wylie all have a bonus payout date of May 12. If a sale of the team happens between now and May 12, the delayed bonus payments would become the responsibility of the new owner.[12]
Well, who are some of the other possible bidders besides Bezos? Josh Harris and Magic Johnson lead an investment group that is widely considered to be the frontrunners to acquire the Commanders. Johnson has had at least a partial stake in the Los Angeles Lakers, Dodgers, Sparks, and F.C., while Harris has been a part of the group that has bought the Philadelphia 76ers, New Jersey Devils, and Crystal Palace F.C.[13]
Others include Byron Allen, a media mogul and founder of Entertainment Studio who would become the first black majority owner of an NFL franchise; Tilman Fertitta, the owner of the Houston Rockets and Landry’s Inc.; Steve Apostolopoulos, a Canadian billionaire who founded the private equity fund Six Ventures and is a candidate to buy the Charlotte Hornets; and Clearlake Capital, led by founders Behdad Eghbali and Jose Feliciano. Snyder blocked Clearlake Capital’s attempt to buy a minority stake in the Commanders in 2020.[14]
The sale of the Commanders franchise is inevitable. It’s no longer a matter of if but when the transaction will occur. Until then, all eyes will be on The Biltmore in Phoenix, AZ from March 26-29.
[2] https://theathletic.com/4251752/2023/02/25/jeff-bezos-washington-commanders-sale/
[3] Id.
[5] https://theathletic.com/4251752/2023/02/25/jeff-bezos-washington-commanders-sale/
[6] https://nflpa.com/nfl-player-team-report-cards
[7] https://theathletic.com/4251752/2023/02/25/jeff-bezos-washington-commanders-sale/
[8] Id.
[9] Id.
[11] https://www.si.com/nfl/2023/02/26/amazon-jeff-bezos-washington-commanders-bid-dan-snyder
[12] https://theathletic.com/4323356/2023/03/19/dan-snyder-commanders-sale-contracts/
[13] https://www.profootballnetwork.com/washington-commanders-sale-potential-buyers/
[14] Id.
Photo Credit:
Jeff Bezos – https://theathletic.com/4251752/2023/02/25/jeff-bezos-washington-commanders-sale/
Dan Snyder – https://www.profootballnetwork.com/washington-commanders-sale-potential-buyers/