The Josh Harris-led group buying the Washington Commanders expects there will be a massive cash windfall for the franchise in terms of increased ticket sales and sponsorship revenue with the removal of Dan Snyder as owner, according to a prospectus obtained by ESPN.
The prospectus prepared, by Harris Blitzer Sports & Entertainment and dated March 2023, also believes that prospects for a new stadium will change and that Virginia "will offer the best incentive package - potentially up to $1.5 billion" in public funds to lure the Commanders to the Commonwealth, according to a Seth Wickersham and John Keim report.
The document, which is 43 pages in length and titled "Commanders Investment Opportunity," was used to pitch other limited partners to buy into the Harris deal, per ESPN, and offers a glimpse into the financials of the NFL franchise.
The prospectus states the Washington franchise made $173 million in local revenue, money generated from tickets, sponsorship, parking and other team activities. (That number is similar to a figure the New York Post's Josh Kosman told Team 980's Kevin Sheehan in February 2023, which he described as "average-ish for an NFL team.") In the Harris group's estimations, that number could balloon to $380 million by 2031-32 and increase to $466 million by that year if there is a new stadium.
"The Commanders historically ranked top in the league across all local revenue metrics and attendance. However, the team has significantly spiraled as a result of allegations against current ownership," the prospectus states, per ESPN. "As ownership changes, we see opportunities to substantially drive local revenue and bring the team back to a top NFL market."
Due to the number of minority partners – the deal includes around 17 parties in total – many around the NFL have acknowledged the consortium is atypical for the league. However, it appears the appetite for some owners to get rid of Snyder has assuaged some of their concerns about the size of the Harris group and their collective level of capital, especially considering the need for a new stadium. Reports from the NFL finance committee's meeting have indicated there are concerns, but none so major the league's owners nor the Harris group believe that they can't be worked out.
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And while sources have told ESPN that if not for the disdain for Snyder there is no way NFL owners would approve Harris' bid, there are those who believe in the premise of the prospectus, with sources telling ESPN that a quick rebound for the team's financials is within reach, capitalizing on a "disengaged" fan base and a large segment of fans who love the team, but hate Snyder.
"The team's passionate fan base, historical loyalty and strong market suggest there is ample room to grow," the prospectus said.
Commanders attendance at FedEx Field rebounded during the 2022 saeson, but still ranked last in NFL, a position the organization has occupied for some time.
To help lure fans back, the group is assuming they need $100 million for "immediate structural repairs" and maintenance to FedEx Field and $43 million upgrading loge boxes and suites. And $88 million in locker room updates and new videoboards to establish the ownership group's "commitment to fan/player experience," per ESPN.
But, as previously mentioned, Landover's FedEx Field isn't seen as the forever home for the franchise, with Virginia expected to offer up the most to win the race for the new stadium. However, the RFK Stadium site in D.C. and the FedEx Field site were also mentioned as potential long-term homes.
Read the full report in ESPN here.
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