The Washington Commanders have moved one step closer to new ownership after a billionaire group including Josh Harris and NBA legend Magic Johnson “officially submitted a $6 billion offer.”
The future of the NFL team has been up in the air since embattled owner Dan Snyder enlisted Bank of America to explore a potential sale of the team last year, and until now, no interested party has reached its high valuation.
Now, however, ESPN insider Adam Schefter is reporting that the group led by Harris and Mitchell Rales has officially submitted its fully-funded offer to Snyder.
Harris already owns the Philadelphia 76ers NBA team and the NHL’s New Jersey Devils, while also co-owning the Premier League’s Crystal Palace.
Meanwhile, Rales has no prior history of sports franchise ownership, but he does have an estimated net worth of $5.5 billion.
Magic Johnson (L) is teaming up with Josh Harris (R) in a bid to buy Washington Commanders
A $6 billion fully funded offer has been submitted to current owner Dan Snyder (pictured)
Snyder, 58, has faced calls from fans to sell the struggling team for years, but pressure has mounted since 2020 amid allegations of sexual harassment, financial improprieties and obstruction against the team and Snyder himself. .
While the Commanders fired many of the people accused of sexual harassment and paid a $10 million fine to the NFL, Snyder defiantly denied the allegations against him in the face of various investigations, including a congressional investigation.
Both Snyder and the Commanders are under investigation by former federal prosecutor Mary Jo White, who has been appointed by the NFL to investigate allegations stemming from a congressional review of hostile workplace claims, as well as a referral to the Federal Commission. of Commerce for possible commercial negligence. .
On Monday, the washington times reported that Snyder refused to speak to White, though a team spokesperson declined to comment on that when asked on record.
And those are not the only legal problems for Snyder, who faces other civil lawsuits and investigations.
The District of Columbia Attorney General has filed a pair of civil lawsuits against the majors over an alleged scheme to deceive fans out of season ticket security deposits and allegations that the club, Snyder and the NFL commissioner , Roger Goodell, misled fans about the initial investigation. in hostile claims in the workplace.
That NFL investigation was settled in 2010 with a $10 million fine against the team and Snyder’s agreement to withdraw from club operations, but the league never compiled a written report, citing witness confidentiality.
The Commanders also settled with Maryland over the aforementioned security deposit scheme, agreeing to pay a $250,000 penalty.
Before Republicans seized power in Congress, the previously Democratic-led Oversight Committee investigated the Commanders over allegations of sexual harassment, leading to the revelation about the alleged ticket security deposit scam. .
Snyder spoke to the Committee, albeit behind closed doors, while Goodell testified publicly about the team’s investigation.
Following the washington post recent report that Snyder was seeking compensation if he sold the team, ESPN reported on March 1 that FBI and IRS agents are investigating claims that Snyder obtained a $55 million loan without the knowledge of his minority partners.
After years of disputes, Snyder bought out minority owners Dwight Schar, a home construction executive, Black Diamond Capital CEO Bob Rothman, and FedEx founder Fred Smith, in the spring of 2021. The trio had previously filed a court order in the hope that they would be allowed to sell. his 40.5 percent stake in the team, which Snyder ultimately bought after the NFL approved a debt limit waiver, allowing him to obtain a $450 million loan from Bank of America.
Now, a federal grand jury has issued subpoenas related to the team’s finances, according to ESPN.
The former minority partners had reportedly demanded 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 they believed league commissioner Roger Goodell and general counsel Jeffrey Pash sided with Snyder.
If Snyder obtained the $55 million loan without informing his now former minority partners, he would have violated the team’s shareholder agreement, according to documents obtained by the AP.
Bank of America officials repeatedly requested proof that the board had approved the loan, only to close the deal without receiving any such confirmation. Documents obtained by the AP show a lawyer for the team acknowledging in a letter that board approval was never granted.
A Bank of America spokesman declined to comment to DailyMail.com.
Less than a week after Schar, Rothman and Smith pressured NFL referees to investigate the loan, the NFL moved to end the arbitration proceeding, the documents show.
Frustrated, Schar, Rothman and Smith hesitantly agreed to allow Goodell to mediate the dispute, according to ESPN.
The NFL did not conduct any investigation into the loan, and Snyder has never been penalized for the claims of financial misconduct.
The commanders’ attorney, John Brownlee, did not respond to questions from ESPN about the alleged $55 million loan, but said the team is cooperating with the Justice Department’s request for financial records.