Among football fans in the Washington, DC area, Daniel Snyder is one of the most well-known names in the sport. Since 1999, the businessman has owned The Washington Football Team, formerly known as the Washington Redskins. Under the past 20 years of his ownership, the franchise has managed to increase its annual profits by nearly $100 million, planting it behind only the Dallas Cowboys in terms of gross revenue within the National Football League.
Although the name Snyder has been strongly linked to the football franchise for those who follow the team, some may not remember that his acquiring of the team twenty years ago was the subject of intense debate and scrutiny. It resulted in a momentous moment in history for the National Football League. Here is the story that followers of the sport should know.
Who is Dan Snyder?
Dan Snyder is a Maryland local who took marketing classes at the University of Maryland before dropping out at the age of 20. From there, he went on to a number of successful business ideas, including founding Snyder Communications with his sister Michelle in 1988. That company positioned him to build a considerable amount of wealth and influence, helping him nurture the leverage he would need when decided to venture into team ownership. By the age of 32, in 1996, he led the organization to an Initial Public Offering, which made Dan Snyder the youngest company head on the New York Stock Exchange.
How did Dan Snyder come to own the Washington Redskins?
The death of Jack Kent Cooke and early bidding
Prior to Dan Snyder, the DC football franchise was owned by Jack Kent Cooke. In 1997, however, Cooke passed away. His will resulted in a fierce bidding competition between a variety of parties, including Dan Snyder.
The son of the former owner, John Kent Cooke, was determined to keep the franchise within the family. However, a variety of other potential investors entered the fray as well. This included Peter Angelos, the majority owner of the Baltimore Orioles; David Doberman, an investor from Fort Worth; John M. McMullen, the owner of the New Jersey Devils; and Sam Grossman, a hotelier from Arizona. The bids during the blind auction quickly made it apparent that the sale itself was going to be the most expensive purchase of a franchise in NFL history.
Daniel Snyder initially joined forces with Howard Milstein, a real estate investor from New York. They attempted to win the favor with the trustees in charge of determining the winning bid by offering more than $700 million in cash with the stipulation that the decision is made immediately. This attempt to swing favor in their direction did not succeed. Rather than give up, however, the pair wrote up another offer to submit to the committee. The two businessmen were successful and signed a deal in January of 1999 for about $800 million.
Securing approval from the NFL
Although the bid outpaced others competing for the team, the sale of the Redskins still had to be approved by the league itself. The NFL made it clear that they preferred that the team remain with the Cooke family. They offered the trustees appealing concessions, including waiving certain financial requirements for team ownership if the team went to the Cookes instead of the Snyder-Milstein duo.
The team apparently had a variety of concerns about the deal that Snyder and Milstein had signed, including thinking that the offer included too much debt. The NFL personally ordered more financial information from the pair and hired private investigators to learn more about the men who wanted to buy the Redskins.
During this time, the NFL’s concerns about Milstein continued to grow. The league expressed concerns that his portion of the bid was too dependent upon real estate. In response, the pair realized that the vote from the NFL would not go in their favor and thus withdrew their joint bid.
Daniel Snyder proceeds alone
After making the decision to withdraw the joint bid with Milstein, Snyder worked with his own network and investors to secure the needed financing to match the previously accepted $800 million with a bid of his own. With the new round of bidding, some of the old contenders did reenter, but it quickly became clear that Snyder was moving in the direction of victory.
The new deal appealed more to the NFL, and on May 25, 1999, the league voted unanimously to allow the sale to go forward to Daniel Snyder. This record-breaking deal outpaced the formerly largest franchise sale by more than $250 million, which caught the attention of those who followed the important events of the NFL.
The aftermath of the sale of The Washington Football Team
After Daniel Snyder successfully purchased the Washington Redskins, he went on to continue to have success as a businessman. He was able to bring in a considerable amount of revenue for the team through sponsorships, particularly FedEx, thanks to a deal that resulted in the naming of the franchise’s home field as FedEx field. He has also gone on to own more than 10 percent of Six Flags Inc, purchase a number of radio stations, and purchase the restaurant chain, Johnny Rockets, in addition to a number of other business ventures.
Jack Kent Cooke continued to work with his father’s foundations, which awards millions of dollars in scholarships each year. He voiced considerable disappointment after failing to maintain control over the Redskins football franchise but said that he wished the team many victories in the future.
In 1999, the auction of the Washington Redskins had a deep and lasting impact on the nation’s capital’s football team. The transfer of the team from the Cooke family to Daniel Snyder was a piece of history, particularly as it stole the title of the most expensive franchise purchase in the history of the league. Those interested in sports will likely not forget the intense debate and emotion surrounding this important moment in football history.
