How much did Dan Snyder pay for Washington Commanders in 1999? Profit margin explored after $6 billion sale

Dan Synder has agreed in principle to sell the Washington Commanders franchise to a group led by Josh Harris and Mitchell Rales for $6 billion. It will be the highest amount paid for a team, overtaking the $4.65 billion paid by the Walton-Penner family for the Denver Broncos last year.

Considering all the personal money he invested, Snyder spent around $1.1 billion to gain complete control of the Washington Commanders. Hence, he is set to make an estimated 545 percent profit margin or approximately $4.9 billion from his investments once the sale is finalized.

Harris co-founded Apollo Global Management and is a part-owner of Harris Blitzer Sports and Entertainment, which owns the Philadelphia 76ers, New Jersey Devils, and Prudential Center.

He also has a minority stake in the Pittsburgh Steelers that he must sell now that he owns the Washington Commanders. Meanwhile, Mitchell Rales co-founded Danaher Corporation and has a net worth of $5.6 billion.

The incoming Washington Commanders ownership group includes Basketball Hall of Famer and five-time NBA champion Magic Johnson.

Sportico estimated the Washington Commanders’ valuation at $4.78 billion as of August 2022, around $600 million above the league average. That amount makes it the eighth-most valuable NFL franchise and the 14th-most valuable team among all United States professional sports teams.

The deal will end one of the NFL's most controversial ownerships. Snyder is embroiled in allegations of toxic workplace culture towards women, keeping two different financial ledgers, and underreporting ticket sales.

The Washington Commanders haven’t done well on the football field, either. They have won only two playoff games since Snyder took over and have made only six postseason appearances in 24 seasons. Despite these concerns and issues, he will get a massive payday once the transaction is complete.

Washington Commanders sale timeline: Dan Snyder finally out of NFL with big profit

May 1999

Dan Snyder purchased the then-Washington Redskins from the Jack Kent Cooke estate for $800 million. It was the most expensive transaction for a sports team at that time.

He completed the payment by borrowing $340 million from Societe Generale. Out of that number, he borrowed $100 million as collateral and $240 million secured by stock in a holding company. He also assumed $155 million mortgage of the then-Jack Kent Cooke stadium. However, he had to raise the remaining $300 million to purchase the team.

According to a 2006 article by Washingtonian.com's Harry Jaffe, Snyder put up $120 million of his own money and borrowed $90 million from his family. He got the remaining $90 million from media proprietor Mortimer Zuckerman and venture capitalist Fred Drasner.

December 1999

Zuckerman sold his 15 percent stake to Snyder. He invested in the ownership group to help Snyder put together a bid under time constraints. Zuckerman and Drasner joined the group when Howard Milstein bailed out. The Snyder family had an 85 percent ownership stake after this transaction.

Drasner also sold his shares a few years later, giving the Snyders complete control of the franchise.

2003

Snyder agreed to sell minority ownership stakes to reduce the team’s debt. He sold 15 percent to Dwight Schar for $200 million and 15 percent to insurance executive Robert Rothman for $200 million. FedEx founder Frederick W. Smith bought a ten percent stake for an undisclosed amount.

November 2020

Snyder exercised his right of first refusal to block minority owners from selling their stake to a third party. A group of investors from California offered $900 million to buy the 40.499 percent ownership held by Rothman, Schar, and Smith.

While the three minority owners wanted to sell their stock as one, Snyder initially offered to purchase only Smith and Rothman's 25 percent. As a result, the minority owners filed a lawsuit in U.S. District Court in Maryland, accusing Snyder of violating their partnership agreements.

April 2021

Snyder requested a $450 million debt waiver from the NFL to help fund the deal to purchase the remaining minority stake. The league's finance committee agreed. He then bought out Rothman, Schar, and Smith's shares for $875 million.

November 2022

After immense pressure brought about by the controversies hounding them, the Snyders explored for the first time the possibility of selling the Washington Commanders. They hired a financial services firm to consider possible bids.

However, the issues kept on piling as D.C. attorney general Karl Racine filed a lawsuit against Snyder, the team, and the league. Racine accused Snyder of cheating fans out of ticket money. The Commanders settled and agreed to return the security deposits of season ticket holders.

March 2023

NFL team owners had their annual meeting in Arizona, with Snyder being a hot topic. Snyder and his legal team demanded that the league indemnify him for future liabilities after selling the team.

Meanwhile, two groups submitted fully financed bids to purchase the Washington Commanders. One bid was from the Harris-Rales group while the other was from Canadian billionaire Steve Apostolopoulos.

April 2023

Reports surfaced that Amazon owner Jeff Bezos declined to bid for the team. However, Snyder has agreed in principle to sell the Commanders to the Harris-Rales group. Landry's Inc. chairman and CEO also revealed that he placed a $5.6 billion bid for the Commanders.

List of biggest sales in US sports history

Here are the top ten most expensive sports team purchases, according to NBC Sports:

1. Washington Commanders: $6 billion (sold in 2023 to Josh Harris and Mitchell Rales-led ownership group)
2. Denver Broncos: $4.65 billion (sold in 2022 to Walton-Penner family of Walmart fortune)
3. Phoenix Suns/Mercury: $4 billion (sold in 2023 to United Wholesale Mortgage CEO Mat Ishbia)
4. New York Mets: $2.4 billion (sold in 2020 to Point72 Asset Management founder Steve Cohen)
5. Brooklyn Nets: $2.35 billion (sold in 2019 to Alibaba Group co-founder Joe Tsai)
6. Carolina Panthers: $2.275 billion (sold in 2018 to Appaloosa Management founder David Tepper)
7. Houston Rockets: $2.2 billion (sold in 2017 to hotel and casino billionaire Tilman Fertitta)
8. Los Angeles Dodgers: $2 billion (sold in 2012 to Guggenheim Baseball Management)
9. Los Angeles Clippers: $2 billion (sold in 2014 to former Microsoft CEO Steve Ballmer)
10. Toronto Maple Leafs: $1.3 billion (sold in 2011 to Rogers Communications and Bell Canada Enterprises)