Why is there a hold up in the Commanders sale?

With the NFL owners gathering later this month, the long-hoped-for sale of the Washington Commanders to a group led by Crystal Palace and Philadelphia 76ers owner Josh Harris is a topic certain to generate chat and attention.

It’s been over a month since the $6.05billion deal was struck in principle that would make the Washington Commanders the most expensive sports team on the planet. But progress getting the sale over the line has been slow.

The team has been in the wilderness for almost the entirety of current owner Dan Snyder’s tenure, having been embroiled in controversy off the field with a toxic working culture and sexual harassment, which led to a $10million fine after an NFL investigation in 2021, and failed to achieve much on the field either.

As a result, owners across the league have been eager to see the back of Snyder and usher in a new era for the franchise.

So what’s the delay?

According to The Athletic, there are parts of the deal would break the set precedent of a sale of an NFL team, seemingly indicating how much the league wants to bend its guidelines to move on from the Snyder era.

Buyers of teams are limited in the amount they can borrow, with Harris proposing up to $1.1 billion against the franchise. He also plans to add more debt secured against his other sports teams, which on top of the previous teams mentioned also includes the New Jersey Devils. That alone raises questions on the amount of debt and any potential future default.

As a result, the league has to unravel what the consequences could be if Harris hypothetically defaulted on his debts. Each member of his 17-strong consortium will also have to face extensive vetting before the sale is signed off.

Twist in the sale?

Recent NFL sales have involved buyers who did not need help in buying the respective team. Last year, members of the Walton family bought the Denver Broncos for $4.65 billion, and before that, fund billionaire David Tepper bought the Carolina Panthers for $2.275 billion in 2019. But with the price to pay for a franchise skyrocketing, there are worries emerging that at some point buyers would struggle to acquire NFL teams while working around the debt rules.

So any continued hold up risks the perspective deal from falling through. And with Snyder yet to put his signature to any deal, other buyers hypothetically could attempt to steal in.

There is the possibility of an unprecedented conditional approval, allowing more debt than is standard and the prospective soon-to-be ex-owner extending a loan to the Harris group to get the deal over the finish line. But we’re entering the completely unknown when it comes to a franchise sale.

Everyone around the NFL will be desperate to see the back of Snyder and a new dawn for the Commanders franchise. But unfortunately, that day may be further away than expected.