Daniel Snyder's $450M Debt Waiver Approved to Buy Out WFT Minority Partners

Timothy Rapp@@TRappaRTFeatured ColumnistMarch 31, 2021

Washington Redskins owner Daniel Snyder arrives for an NFL owners meeting in New York, Thursday, Feb. 20, 2020. The NFL's labor committee met Thursday morning before presenting to the owners the current state of ongoing negotiations with the players' union on a new labor agreement. With the league eager to reach a collective bargaining agreement with the players in the next few weeks _ the current deal runs out in March 2021 _ team representatives were summoned to New York to discuss the NFL's proposal. (AP Photo/Bebeto Matthews)
Bebeto Matthews/Associated Press

NFL owners reportedly agreed to a $450 million debt waiver for Washington Football Team majority owner Daniel Snyder that will allow him to buy out the 40.5 percent of the team currently owned by minority owners Fred Smith, Dwight Schar and Bob Rothman. 

According to that NFL.com report, the trio sued Snyder in a federal court last November, looking to obtain an injunction that would permit them to sell off their shares of the franchise. Buying out their shares would give Snyder sole control over the franchise.

ESPN's Seth Wickersham offered more details on the situation, noting that the total cost of acquiring the remaining 40.5 percent of the organization would sit around $875 million:

Seth Wickersham @SethWickersham

Per NFL documents presented at the league meeting videoconference, the cost of Dan Snyder buying the remaining 40.5% of the Washington Football Team LP interests is $875 million. Parties would terminate all of their disputes.

Seth Wickersham @SethWickersham

After the close, Snyder can resell limited stakes in the team. Any proceeds would be required to repay debt.

As Mike Florio of Pro Football Talk wrote, the sale will put a close to the conflict between Snyder and the organization's minority owners:

"The transaction ends months of acrimony and litigation between and among Snyder and his partners. Late last year, the minority partners filed suit aimed at forcing Snyder to exercise a right of first refusal as to all of them, without the ability to pick and choose. With the ability to secure a debt waiver, Snyder will now give them want they want—an exit for all three of them."

Snyder needed the approval of three-quarters of the NFL owners (24 or more) to ratify his debt waiver.

Wednesday's news came amid the NFL continuing to investigate the organization for "sexual harassment and inappropriate workplace behavior," per Judy Battista of NFL.com.

The organization also changed its name before last season after a number of sponsors dropped or threatened to drop partnerships with the team, due to the previous name being a derogatory term for Native Americans.