Dan Snyder Roundup: Indemnification, Financial Impropriety, Potential Sale

The past few days have seen a number of reports emerge with respect to Commanders owner Dan Snyder which add further to the disdain felt towards him and the uncertainty that he will sell the team. With league meetings approaching later this month, pressure is likely to increase from other owners to distance himself from the league.

In the event that takes place, however, a number of legal actions could be soon to follow. A report from Mark Maske, Nicki Jhabvala and Liz Clarke of the Washington Post claims that Snyder is seeking protection against future liability and costs if he ultimately decides to sell the team. That demand for indemnity is a noteworthy one, as it comes against a backdrop of his fellow owners seeking to have him either sell the team or face the possibility of an unprecedented vote to remove him taking place.

The Post’s report notes, to little surprise, that Snyder’s indemnification request has not sat well with the other owners. In the event it is not granted, however, Snyder has threatened to sue them and the league in the event he is forced out. In addition, Snyder is reportedly seeking to keep the results of the ongoing Mary Jo White investigation into the team’s workplace culture and allegations of financial impropriety from going public. The NFL has stated that a written report on that front will be released, and Snyder’s demands to the contrary are similarly not likely to be met with sympathy from around the league. For their part, the Commanders have issued a statement which says the above claims are “simply untrue.”

Here is a roundup of some other Snyder-related notes, as this ongoing storyline continues to take shape:

  • In a follow-up to the aforementioned Post article, Clark, Maske and Jhabvala detail that league sources believe a vote forcing Snyder out would hold up against a hypothetical legal challenge. The preference amongst owners, however, remains that Jerry Jones (long thought to be Snyder’s closest ally, though their relationship seems to have worsened recently) helps convince Snyder to take the less challenging path of selling the franchise. On the point of indemnity, the expectation exists that it will be flatly rejected, given the myriad issues which have dogged Snyder over the course of his 24-year tenure as owner.
  • In a lengthy piece examining the financial aspects of the controversy surrounding the Commanders, ESPN’s Don Van Natta writes that a $55MM loan obtained in 2019 marked a key turning point in Snyder’s buyout of the team’s three minority owners. The latter group claimed they were not made aware of the loan being requested and obtained (a clear violation of the club’s shareholder agreement), and aired the grievance during a mediation session including NFL commissioner Roger Goodell. Van Natta notes that no league action was taken to investigate the matter, which ended in the minority partners’ stake in the franchise being sold. This episode, they claim, represents one of several examples of Snyder using the team “as a personal piggy bank.”
  • Other issues of financial impropriety are at the heart of an ongoing probe from the U.S. Attorney’s Office of Eastern Virginia. As reported by A.J. Perez of Front Office Sports, that process now includes at least one subpoena being issued. The Commanders, who by their own admission have remained cooperative in the investigation, have previously been forced to pay a $250K penalty and refund season-ticket holders after deposits were found to have been withheld improperly. Van Natta’s ESPN’s piece adds that a criminal probe is underway, and is being led by FBI and IRS agents investigating what one source described as “jail time type of fraud” on Snyder’s part.
  • As was the case in October, owners are set to once again discuss Snyder and the Commanders situation in the coming league meetings, writes Rob Maaddi and Stephen Whyno of the Associated Press. It was during the fall summit that Colts owner Jim Irsay publicly spoke out about the potential Snyder is forced to sell. Such action would become possible if at least 24 of the 31 other owners voted in favor of ousting Snyder, though questions have persisted throughout this saga whether the required majority exists to follow through on that.
  • On the point of a potential sale, Albert Breer of Sports Illustrated reports that $7B remains the “magic number” which Snyder is seeking. The latest on the bidding process has suggested that $6B could be closer to the sales price, which could cloud Snyder’s intentions of selling all or part of his share even further. The top name linked to buying the franchise, Jeff Bezos, has reportedly been blocked from taking part in the Commanders bidding process to date. Breer notes that the Amazon founder may very well prefer to buy the Seahawks should they hit the market, something which is not expected in at least the near future. While Bezos’ interest (or lack thereof) in buying the Commanders remains a storyline worth watching, further developments could be coming soon regarding Snyder’s future vis-à-vis the league’s other owners.
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