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Forbes
Forbes
20 Jul 2023



Philadelphia 76ers Unveil Charles Barkley Sculpture

In Command: Josh Harris, who owns the Philadelphia 76ers and the New Jersey Devils, will lead the new ownership group of the Washington Commanders.

Mitchell Leff/Getty Images

The National Football League’s owners are expected to approve the sale of the Washington Commanders by Dan Snyder to a group led by Josh Harris for a record $6.05 billion—with $5.8 billion down and another $250 million over the next two years, depending on how much local revenue the team generates.

Adjusting for inflation, the $6.05 billion price would represent a 5% premium to Forbes’ valuation of the Commanders a year ago. (The previous record sale price of $4.65 billion was set last year by the Walton-Penner group when it purchased the Denver Broncos a year ago.) Snyder bought the team—then the Washington Redskins—from Jack Kent Cooke in 1999 for $750 million.

The sale must be approved by at least 24 of the 32 owners. Last month, Harris’ group agreed to make adjustments to financing the purchase to satisfy the league’s finance committee. NFL rules require the general partner—in this case, Harris—to own at least 30% of a team and not have more than $1.1 billion of debt when buying a franchise. The Harris group’s prospectus predicted low-to-mid-double digit returns on investment.

Commanders return on investment

Base and Upside ROI.

Forbes

Harris has 20 limited partners in his group, including Michell Rales, Magic Johnson, Eric Schmidt and Mark Ein, the most in the NFL. Prospective investors in the Commanders were shown a 43-page prospectus in March called “Commanders Investment Opportunity.” Some of the revenue and profit expectations have been written about but for those looking to keep score we provide the actual document.

Most expensive team sales

Top 10 sale prices.

Forbes

Below, for example, are the base case and worst case scenarios from the prospectus on revenue and EBITDA (earnings before interest, taxes, depreciation and amortization), as well as the projections if the team gets a new stadium. Keep in mind that any new stadium is likely to cost the owners at least $30 million a year in interest payments, meaning pretax profits will be significantly lower than EBITDA.

Commanders case matrix

Base Case and Upside Case

Forbes

Harris is the founder and managing general partner of Harris Blitzer Sports & Entertainment (HBSE). In connection with the HBSE portfolio, he is also the managing partner of the Philadelphia 76ers and the co-managing partner, vice chairman, & alternate governor of the New Jersey Devils.

In January, Forbes pegged HBSE as the world’s 18th-most-valuable sports empire, worth $4.65 billion. All told, once the deal to buy the Commanders closes, Harris will effectively run a sports empire worth around $10 billion.