DAN SNYDER SLAPPED WITH MASSIVE $60 MILLION FINE AS NFL OWNERS UNANIMOUSLY APPROVE $6.05 BILLION SALE OF THE WASHINGTON COMMANDERS
Washington Commanders owner Dan Snyder was handed a $60 million fine by the NFL as the league publicly released Mary Jo White’s report into workplace misconduct by the Commanders organization on Thursday. The news broke just moments after the league announced that NFL owners had unanimously approved Josh Harris’ $6.05 billion purchase of the team.
After 24 years, Snyder’s tenure in Washington is now over, and it ends in a spectacular $60 million fine, albeit only 1% of the franchise selling price.
NFL Commissioner Roger Goodell appointed Ms. White as the independent investigator to look into allegations of workplace misconduct against Dan Snyder in February 2022, brought forward by the team’s former cheerleader and marketing employee, Ms. Tiffani Johnston. Goodell expanded the scope of Ms. White’s investigation after allegations of hidden revenue began to arise.
Ms. White’s report sustained Ms. Johnston’s workplace misconduct allegations, to which commissioner Goodell replied in a statement: “The conduct substantiated in Ms. White’s findings has no place in the NFL. We strive for workplaces that are safe, respectful and professional. What Ms. Johnston experienced is inappropriate and contrary to the NFL’s values.”
The report also found that the team had, for a number of years, deliberately hidden ticket sales revenue from the rest of the NFL and retained customers’ security deposits in connection with multi-year club seats and suite seats.
Club ticket sales revenue are meant to be disclosed to the league by every team and the total shared with other clubs under the League Constitution and Bylaws. The Commanders were also contractually obligated to return security deposits upon expiration of the leases. Ms. White’s investigation found that the team failed to report and share with the league such revenue from forfeited security deposits.
The investigation specifically identified approximately $11 million in revenue that the Commanders improperly shielded from sharing to the extent required by NFL policies. Ms. White could, however, not identify an exact portion of the approximately $44 million of Deferred Income Transfers that was improperly shielded from sharing due to the club’s lack of cooperation during the investigation.
The report revealed that the Commanders improperly classified NFL revenues as non-shareable revenues from special events, such as concerts, college football games, or soccer games.
Mary Jo White’s findings sustained allegations of sexual harassment by Snyder and deliberate underreporting of revenues, hence the $60 million fine. NFL Commissioner Goodell said the fine resolves both the findings of the report and “all outstanding matters,” and that the league’s finance committee recommended the $60 million figure, which was unanimously accepted by its members.
With a $6.05 billion payday, Snyder is set to make a near 700% return on his initial investment in the team. The sale of the Washington Commanders is now the most lucrative transaction in North American sports history, eclipsing the $4.5 billion purchase of the Denver Broncos by the Walton-Penner group last summer.
Snyder led a group that purchased the Washington franchise in 1999 for $800 million, at the time the most expensive transaction in sports history. The team would only manage six playoff appearances in that time, winning two playoff games and not making a single NFC Championship Game appearance. Snyder had 10 different head coaches, 27 different starting quarterbacks, a .427 winning percentage – 27th-ranked in the NFL in that period – and now leaves amidst a workplace misconduct scandal.
In an introduction to the new Washington owners, NFL Commissioner Roger Goodell in a statement: “Congratulations to Josh Harris and his impressive group of partners. Josh will be a great addition to the NFL. He has a remarkable record in business sports, and in his communities. The diverse group that Josh has put together is outstanding for its business acumen and strong Washington ties and we welcome them to the NFL as well.”
“I met Josh several years ago, prior to his acquisition of an interest in the Steelers,” Goodell went on. “And have been fortunate to get to know him better over the past few months. I know he has a commitment to winning on the field, but also to running an organization that everyone will be proud of – and to making positive contributions in the community.”
With the deal expected to be closed shortly, the Washington Commanders released a statement on Thursday, in which incoming managing partner, Josh Harris, said, “Today, my partners and I were entrusted by the NFL with the stewardship of a great franchise. As a life-long Washington football fan who grew up here, I know that the Commanders are more than just a sports team. This is an institution passed down from generation to generation.”
“From day one, it is our top priority to deliver you a championship caliber team, and we will strive every day to ensure that we are a franchise you can be proud of. To Commanders fans everywhere, our promise is simple. We will do the work, create the culture and make the investment needed to deliver for this team and for Washington.”
Cowboys’ owner Jerry Jones had told reporters upon arriving at the special NFL meeting on Thursday morning that he thought it was going to be a great day for the NFL, and it’s safe to say the owners are happy with Snyder’s exit from the league. Indianapolis Colts owner Jim Irsay said after the meeting, “We’re very happy.”
With a huge task ahead of him, new owner Josh Harris assured Washington fans, “A new era of Washington football is here. It’s time to get to work… I’m going to be remembered for what I do in Washington. That’s not lost on me. I’m all in.”
Initial reports out of DC have indicated that nothing is currently off the table in terms of Washington’s new era, including the much maligned “Commanders” namesake. Harris’ group is currently exploring “all avenues” in terms of team identity, rebranding, and culture moving forward.
-Maher Abucheri
Twitter: @pabloikonyero
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