Indemnification as a “menu item” in the sale of the Commanders has been one of the many hot topics around the process, and it came to light earlier this week that Josh Harris’ bid for the team may include some for Daniel Snyder.
Lisa Banks, an employment lawyer representing more than 40 former team employees involved in legal matters with Snyder, joined Grant & Danny to discuss that on Tuesday, and said she wasn’t surprised at all by that rumored inclusion in the deal, but doesn’t expect it to stick.
“I guess I’m not really surprised. We’ve heard all along he was looking for it from someone, so it’s not surprising to me that it could be part of a deal,” Attorney Banks said. “It’s unclear whether there is indemnification or how much, but certainly, Josh Harris isn’t going to give it in full for anything that comes down the pike. I’m not sure why anyone would agree to indemnify him, though, and it wouldn’t surprise me at the end of the day to not see that in any agreement.”
Either way, what would any indemnification (or not) mean for Snyder?
“Really it’s just about money. He’s walking away with $6 billion, and once he pays off his debts he still has billons, so if he has to pay fines to the Feds or state officials or my clients or anyone else, it’s really not going to be a big deal, so I’m not sure it’s something this sale will get hung up on,” Banks said. “Whatever numbers we’re talking about, I’d imagine they’re not in the billions of dollars – it’s just about having someone cover the liability. It’s not unusual in the sale of a business for liabilities to come with the assets, it’s all in how the deal is structured. What I do know, though, is that I’m confident neither the league nor any of the other owners will give him any sort of indemnification.”
If anything, Banks says, the owners think it should be the other way around.
“The folks I have talked to have indicated to me, after talking to people around the league, that there’s zero appetite for offering Snyder any sort of indemnification. The owners feel like, if anything, he owes them,” Banks said. “I don’t see that happening at all, and they have all the leverage here. Snyder has very little room to maneuver; he has to sell this team for many reasons, and he’ll get a good price, but he’s not going to get all sorts of bells and whistles on top of that.”
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So, if he does get it somewhere, what would Snyder be indemnified from?
“Civil penalties,” Banks said flatly. “If there are going to be criminal charges brought against him, nothing in any part of this sale can protect him. When you talk about liabilities here, you’re talking civil claims.”
Overall, Banks told G&D that her clients are, in general, cautiously optimistic about the whole situation.
“It looks like it’s really happening, and on one hand, we’re absolutely thrilled and feel like there’s finally some vindication and accountability here,” Banks said, “but on the other hand, like many people, we want to wait until we see those documents signed and him riding out of town. We also want to see the Mary Jo White report come out, and I think we’re going to see additional accountability there. When that comes out and the ink is dry n these agreements, then we’ll feel like we really accomplished something, and everyone can breathe a sigh of relief.”
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