Washington Football Team owner Dan Snyder withheld annual dividend payments from three minority owners Fred Smith, Dwight Schar and Robert Rothman, according to the New York Times.
The payments were due in April, according the report. This is the latest development in a ongoing dispute between Snyder and the team’s minority owners. Their dispute has led to the minority owners wanting to sell their shares of the team and may have influenced the franchise changing its name.
It’s unclear how much money was withheld. It’s also unclear the reasoning for withholding the payments. But, in June, Snyder removed Smith, Schar and Rothmann from the team’s board. That prompted the NFL to intervene with the commissioner’s office appointing an arbitrator.
The three minority owners, who collectively own 40% of the team, have been trying to sell their shares of the team. They’ve hired an investment banker, Moag & Company, to aid their sell. Smith reportedly asked Snyder to sell his controlling shares to no avail.
According to the New York Times, Schar requested documents regarding the teamâs financial performance, including financial statements for the past two seasons, details on wages earned by team employees, budget projections for this year and information on âall cost-cutting measuresâ since 2018. However, it’s unclear if Snyder undertook in any of Schar’s requests.
In July, Smith’s company FedEx formally asked Washington to change its name, threatening to remove the company name from the team’s home stadium, FedEx Field, if the change was not made. The request came days after the NFL appointed an arbitrator and two months after Snyder failed to pay Smith his annual dividend. The team retired its previous name, renaming to the “Washington Football Team.”
