New York Times - Washington N.F.L. Team’s Drama Fueled by Owners’ Fight Over Payout

[Primus Porcus]

Washington N.F.L. Team’s Drama Fueled by Owners’ Fight Over Payout (Published 2020)

The team’s controlling owner, Daniel Snyder, withheld dividend payouts to partners in the spring, leading to an arbitration case and a boardroom brawl that has spilled into public view.

www.nytimes.com

This sheds a lot of light on the changes taking place... and that it was never actually about social justice. It's always, and will always be about money.

In the spring, with the future of the 2020 N.F.L. season very much in doubt because of the pandemic, Snyder deferred paying annual dividends to three shareholders who collectively hold 40 percent of the franchise, according to documents reviewed by The New York Times.

The decision to withhold the distribution, which was due on April 30 and which the partners claim was made without consulting them, triggered a series of accusations that include financial mismanagement of the team and efforts to smear Snyder.

In early June, David Koche, a lawyer representing the three limited partners, sent a letter to Norman Chirite, a lawyer representing Snyder. To help his clients sell their shares, Koche asked for the team’s financial records, including all of the team’s “transactions with any insiders or entities controlled by insiders.”

If Snyder wanted “to avoid an expensive and lengthy due diligence process and detailed review” of the team’s books, Koche said, Snyder should think about buying out the three partners “at fair value.”

“Accordingly, it would seem worthwhile for Dan to consider putting forth his best efforts to lead the buyout effort” and “proceed to an amicable and expedited closing on the sale of my clients’ interests,” Koche wrote.

I thought they would go after the sponsors... but this could push the narrative to get Snyder to sell. This attorney is out for blood. I don't think Snyder can afford to buy them out clear... This is another step to force him to sell....


Although this throws a little water on that fire...

Snyder does not need to buy out his partners because he already holds a majority of the team. He also has no plans to sell his stake, which he expects to leave to his children, according to several people who have spoken to him.

But this is very VERY interesting

Connected to that lawsuit, Snyder’s lawyers asked a judge in United States District Court in Maryland on Sept. 15 for the right to subpoena the phone and internet records of Moag, the banker for the limited partners.
In the filing, Snyder’s lawyers claim that in early July a representative from Moag’s company called a potential investor to see if he was interested in buying a minority stake in the team. The representative claimed that Snyder would be selling his shares soon.



When this person said he was skeptical that Snyder would sell his majority stake in the team, Moag’s representative said that Snyder “would have no choice but to do so soon thereafter due to negative information that would be released imminently,” according to the court filing.
Moag declined to comment.

 

[Boone]

The main thing I got from that article is that the minority owners are nearly as bad and money-driven as Snyder is, he’s just a more vicious bastard than they could ever hope to be.

It is all about the money, on both sides.

I don’t see anything new that would lead me to believe Snyder feels any pressure to sell. While he obviously didn’t mean it when he said ‘We will never change the name’, I do believe he means to never sell the team. If it ever happens it will be because the league forces it and wins out legally.

The biggest shoe left to drop is what comes of the NFL ‘investigation’ which I personally think is going to scold Snyder for not doing more to change a dysfunctional culture but won’t go any further than that. But the WP has been pretty quiet of late so one has to think they are busy working on their round 3 assault with more women and more allegations to come.

One can hope anyway...

 

[Rymanofthenorth]

But if its true that Fred smith started supporting the name change because Snyder didnt pay the annual dividend, then I want smith to be forced to sell his interest in the team. if you put petty squabbles ahead of tradition you are not someone who should be involved in a team. which is also why Snyder should sell but I doubt he will. I think Snyder is rich enough that he doesnt care about anything or what people think about him.

 

[MikefromOH]

I just read that, too. Just when I thought it couldn't get any worse.....