Dan Snyder Hires Bank to Explore Sale of Washington Commanders to ExxonMobil
The Washington Redskins name is known internationally. After two days of deliberation, the team’s owners finally struck a deal on Monday with the NFL that would allow the six-time defending Super Bowl champs to remain the “Skins” and keep its name.
The deal ensures that Washington will pay a $500,000 annual licensing fee that will cover the annual costs of marketing, television, and radio rights, as well as stadium amenities. It’s a relatively modest salary, but considering that the team has a current payroll of $40 million, it’s a significant portion of the team’s total revenue.
In addition, the NFL guarantees that the Redskins’ current lease, which expires in 2019, will remain in place and that the franchise will maintain its current tax structure.
As one of the most popular names in sports, Washington has a lot at stake going forward.
In order to avoid a conflict of interest in the NFL’s business dealings that could harm any potential buyer for the team, and to ensure that the NFL would obtain the best possible deal for its franchise, Snyder has hired Bank of America Merrill Lynch to explore a potential sale.
According to a report from ESPN’s Adam Schefter, the NFL’s deal with the Redskins is a “one-time payment” of $500,000 to the league, which is expected to be divided among the team, its owners, and the NFL Players Association.
If the NFL were to purchase the team, however, the league would not be able to immediately put it into play. As the report notes, because the Redskins would have to start the bidding process with a new league-owned franchise, it would take two years, at which point the deal to buy the team would likely have expired.
In order to avoid a conflict of interest, Snyder is trying to ensure that an entity controlled by the NFL would be able to purchase the team as soon as possible. According to the report, he has asked Bank of America Merrill Lynch to advise him on how to structure the sale, should one become viable.
One potential buyer for the