Josh Harris’s Commanders deal nears the finish line but isn’t there yet

But while Harris’s $6.05 billion deal to buy the team and end Snyder’s turbulent 24-year ownership tenure is near the finish line, it’s not quite there, at least not yet. The deal still must be vetted and approved by the NFL finance committee and then ratified by a vote of the league’s team owners. And members of the eight-owner finance committee raised issues during their meeting Wednesday in New York that threaten to delay the vote of the owners beyond their meeting this month.

“We look forward to the formal approval of our ownership by the NFL in the months ahead,” Harris said in his statement, “and to having the honor to serve as responsible and accountable stewards of the Commanders franchise moving forward.”

Josh Harris has a signed, exclusive deal with Daniel Snyder for Commanders

Some observers seemed convinced the league’s ratification process will occur uneventfully.

“It’s really happening,” former Green Bay Packers executive Andrew Brandt wrote Friday on Twitter. “The grip of Daniel Snyder (no longer Mr. Snyder to me and you) is being taken off the Commanders’ steering wheel. Team is announcing sale, subject to owner approval (pro forma). Friend and family in the DC are seeing this as a liberation day, it’s here.”

But others are not as certain the deal as it’s currently configured will get a rubber stamp. A person familiar with the sale process expressed the view Saturday that the Harris deal probably would not be approved without some revisions if not for the other owners’ strong desire to remove Snyder from the league.

The finance committee met for about 2½ hours Wednesday at the NFL’s offices in Manhattan. Harris’s deal has been in front of the league for weeks. It was submitted to the NFL last month, an unusual step because the then-tentative deal was unsigned and nonexclusive at that point. But discussions during Wednesday’s meeting diminished the confidence about Harris’s ability to get a deal to the finish line held by some of those familiar with the NFL’s inner workings.

One such person acknowledged a widespread desire among the owners to make the deal work and remove Snyder from the NFL’s ownership ranks with as little rancor as possible. But that person also said some financial aspects of Harris’s deal could make it difficult to move quickly in the ratification process, describing it as complex in part because it includes a large number of limited partners. Harris identified a dozen investors in his group in Friday’s announcement, including two families, and said that was “amongst others.”

Because of those issues, that person said, it was increasingly unlikely the owners would vote at their meeting scheduled for May 22-23 in Minneapolis. Before Wednesday’s finance committee meeting, some people connected to the process had been hopeful the owners might vote at the Minneapolis meeting to ratify Harris’s deal, at least on a conditional basis. While some continue to cling to hopes of a vote this month, a person familiar with the NFL’s inner workings said Friday the owners are expected to be updated on the Commanders sale at the Minneapolis meeting and the prospective final ratification vote would be taken “in the coming months.”

The deal ultimately must be approved by 24 of the 32 owners. They generally follow whatever recommendation is made by the finance committee.

Some NFL franchise sales do result in a worry-free approval process. That was the case with David Tepper’s purchase of the Carolina Panthers in 2018 for $2.275 billion and Rob Walton’s purchase of the Denver Broncos last year for $4.65 billion, the current NFL record.

But not every ratification goes so smoothly. In 1999, Snyder emerged as the buyer of Washington’s storied NFL franchise for $800 million after Howard Milstein, originally the leader of a group in which Snyder was to be an investor, stepped aside. Milstein’s group reached an agreement with the Jack Kent Cooke estate, but his deal failed to win the support of the finance committee. Paul Tagliabue, then the NFL commissioner, said at the time there were concerns about how Milstein proposed to finance the purchase.

In 2005, Reggie Fowler agreed to buy the Minnesota Vikings from Red McCombs for $625 million. But Fowler eventually took a lesser stake as an investor in a group led by Zygi Wilf. There were reports at the time Fowler might not have the financial wherewithal to structure the deal to the NFL’s liking. Fowler also generated controversy just after his initial agreement with McCombs was announced when he released biographical information through his publicist, then revised the information after there were reports of errors in it.

At this point, the issues raised Wednesday by the finance committee about Harris’s deal threaten to slow the approval process rather than derail it. Some of those connected to the sale process say they remain highly confident Harris’s deal will be ratified, whatever the approval timeline. The biggest remaining obstacles, they say, are the NFL dealing with Snyder on issues such as indemnification and the league’s second investigation of Snyder and the team, not anything related to Harris or his record-setting deal.

Harris is a private equity and sports investor who owns the NBA’s Philadelphia 76ers and the NHL’s New Jersey Devils. He has an estimated net worth of $5.9 billion, according to Forbes. He and David Blitzer, his partner in Harris Blitzer Sports & Entertainment and an investor in the Commanders deal, are limited partners in the Pittsburgh Steelers. They would have to sell their Steelers stakes to buy the Commanders. Harris made a failed bid last year to buy the Broncos.

If no vote of the owners is taken this month in Minneapolis, the timeline for approval would be unclear. The next scheduled owners’ meeting is in October. The NFL could schedule a special owners’ meeting to take the ratification vote, as it did last August with the Broncos sale. Harris’s group would have to pay a breakup fee if its Commanders deal does not go through, according to a person familiar with the process.

The Harris group faces a long list of tasks as the team’s prospective new owners and undoubtedly is eager to get started. One top priority will be picking a site and securing funding for a new stadium.

Carter Elliott IV, the press secretary for Maryland Gov. Wes Moore (D), wrote Friday on Twitter: “The [Commanders] have called Prince George’s County home for 25 years, and [Moore] is committed to continuing this long-standing partnership. The Moore-Miller Administration congratulates the new owners and upon approval by the National Football League, looks forward to continuing conversations with the Commanders about our vision for the future of the team in Maryland.”

Many others are similarly eager to see the deal go through.

“I’ve been a fan my entire life,” Matthew Berry, a fantasy football analyst for NBC, said in a video posted Friday to social media, “since I was 5 years old. ... We won the Super Bowl today because finally there’s hope. Finally there’s hope. You can hold your head proud as a fan of Washington. Thank you, Josh Harris.”