Business mogul Tilman Fertitta emerges as a potential purchaser for the NFL's Washington Commanders.
Tilman Fertitta, proprietor of Golden Nugget, is cropping up as a possible contender for acquiring the NFL's Washington Commanders, should Dan Snyder decide to sell the team. Snyder, embroiled in numerous workplace misconduct allegations, including some of a sexual nature, is rumored to be under pressure from the other 31 NFL owners to dispose of the team. Yet, a recent gathering of league owners in Florida failed to garner enough votes to compel Snyder to list the Commanders for sale.
It's common knowledge that Snyder and his wife Tanya are seeking at least $6 billion for the franchise, and last November, they engaged Bank of America to assess possibilities for the team. Reportedly, there are three genuine bidders for the team - Fertitta, Jeff Bezos (founder of Amazon), and Josh Harris (owner of the NBA's Philadelphia 76ers and NHL's New Jersey Devils).
Rumors suggest Snyder is not enthused about selling to Bezos because the latter owns the Washington Post, and Snyder believes the paper's coverage of the team's internal scandals was unfair. Similarly, whispers indicate Fertitta and Harris each proposed around $5.5 billion - far below the Snyders' desired $6 billion price tag.
$6 Billion is a High Demand for Any Bidder, Even for Fertitta
The Post reported that NFL owners view the $6 billion sought for the Commanders favorably. This is because it suggests that their teams are worth more in the open market.
However, that's only if a bidder agrees to fork over $6 billion for the three-time Super Bowl champion Commanders. In such a scenario, the franchise would be valued at 33% more than the Denver Broncos, which were sold for $4.5 billion last year.
Still, $6 billion is a colossal sum for any potential buyer. When considering the world's most valuable sports franchise, the Commanders' NFC East rival Dallas Cowboys, valued at an estimated $8 billion, it becomes even more daunting. That $6 billion also slightly surpasses the Commanders' estimated value of $5.6 billion, according to Forbes. The New England Patriots and Los Angeles Rams follow the Cowboys at $6.4 billion and $6 billion, respectively.
Whether the Snyders accept $5.5 billion, $6 billion, or something in between, their return on investment will be substantial compared to the $750 million they paid for the team in 1999.
How Fertitta Could Fund the Commanders Deal
It's important to note that Fertitta hasn't publicly expressed his intentions to acquire the Commanders or revealed whether he's made an offer for the team.
Fertitta's net worth is estimated at $8.1 billion, and if he decides to venture into the NFL franchise, he has various methods to raise funds for the transaction. These include ownership of undeveloped land on the Las Vegas Strip and his 6.1% equity stake in Wynn Resorts (NASDAQ: WYNN).
Should these assets be liquidated to finance the Commanders deal, these transactions would be beneficial, though probably not enough to reach $5.5 billion to $6 billion. It's conceivable that Fertitta replicates the strategy he employed in 2018 to acquire the NBA's Houston Rockets.
In that year, Fertitta Entertainment, which manages the Golden Nugget casinos and a vast restaurant empire, sold $1.4 billion in corporate debt, utilizing the proceeds to pay a special dividend to Fertitta to secure the Rockets while retaining the majority of his company's equity. Some of those bonds - $745 million worth - mature next year, so it's plausible that banks will market another debt deal for Fertitta because NFL teams consistently appreciate in value.
