Josh Harris, co-owner of the Philadelphia 76ers, has recently secured an exclusive deal to purchase the Washington Commanders for $6.05 billion. Harris believes that the removal of current owner, Dan Snyder, will boost attendance, ticket sales, and sponsorship revenue and increase the team’s chances of a new stadium. The Commanders’ leadership team is confident that Virginia will offer the best incentive package for a new stadium potentially up to $1.5 billion.
The Commanders Investment Opportunity prospectus, prepared by Harris Blitzer Sports & Entertainment, was used to pitch other limited partners to buy into the deal alongside Harris. The document outlines the current financial status of the Commanders, projects base and “upside” cases for the 2031-32 season, and includes projections that account for the building of a new stadium. In his base estimate, Harris projects that local revenue will more than double to $380 million by the 2031-32 season and could hit $466 million that year if the team builds a new stadium.
Risk Involved in Recruiting Other Investors
Despite Harris’ net worth of $7.6 billion, he required the help of at least a dozen others, including NBA Hall of Famer Magic Johnson, to buy a stake in the team. While this move adds risks, it is still not as risky as continuing to have Snyder involved in the NFL. Owners have wondered what reserves Harris has to fix the Commanders if they were to sink into financial trouble. Still, league circles have expressed no concerns to the investor group about their liquidity.
The Prospectus Serves as a Reminder of the Commanders’ Financial History
The prospectus serves as a reminder that, even as Snyder was vilified during the first half of his tenure as owner, the team was a financial windfall. The document estimates that Washington ranked first in league attendance in 2008, coming off Joe Gibbs’ four seasons in his second stint as the team’s head coach. Although those in league circles and many fans have hoped for a new venue at the site of Robert F. Kennedy Memorial Stadium, just east of the Capitol in Washington, the Harris document predicts Virginia will offer the best incentives for a new building, up to $1.5 billion.
According to the prospectus, the Commanders owe $1 billion to the NFL, but the document does not detail the terms of the debt. Harris cites other revenue streams for the NFL and its teams, including lucrative broadcast contracts, which pay about $383 million per year per team through 2033, and sports betting, which could add $10 million to $15 million to annual earnings. The prospectus also mentions the long-term “owner-friendly” collective bargaining agreement with the NFL Players Association, which addresses potential concerns about the viability of football.
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