Brian Davis contends his $7 billion bid for ownership of the Washington Commanders is real. Davis appeared on 106.7 the Fan’s The Sports Junkies, the first media outlet to break the news of his bid last month, on Wednesday to discuss his offer that has drawn a lot of skepticism.
There was a lot to digest from Davis’ interview. His answers to the questions may present more questions for onlookers.
During the 40-minute interview, Davis spoke on the Front Office Sports report that funding for his bid is linked to the Middle East.
“My money comes from white people, who are Jewish, Italian, and Sicilian,” Davis said.
That answer is perplexing and not the most endearing. Yet, the answer is a way to stress that his investors are not connected to Saudi Arabia as reported.
Still, the biggest question is whether or not Davis can satisfy NFL ownership rules of having 30% cash equity of the purchasing price. With Davis bidding $7 billion, he would need to have $2.1 billion of his own, independent of any investors.
“What I hope to do and what we’re planning on is to have acceptance from Mr. Snyder, but what I’m going to show Mr. Snyder is that my partners allow me to have ten and a half billion in my account,” Davis said. “Seven billion to give to Mr. and Mrs. Snyder, two billion for liquidity requirement, one billion to begin restoration of the stadium.”
Satisfying Snyder is one thing, but again Davis will have to satisfy the remaining 31 NFL owners. His history of bad business deals, and how they are portrayed and then perceived by the other owners will matter more than Snyder.
Davis appears to be banking his wealth of a $50 billion valuation he raised of his energy company, Urban Echo Energy, LLC. A quick search shows that the company is an SPV (special property vehicles) which Davis explained is the method he has used following his multiple lawsuits by the likes of Scottie Pippen, Shawne Merriman, Johnny Dawkins, and others.
He must show he has the money needed to satisfy the NFL’s rule for lead investors. His answers suggest his money hinges on the projection that his company is valued at $50 billion provided by his partners.
The Sports Junkies specifically asked Davis if he has the necessary $2.1 billion. Davis’ answer may not have provided clarity.
“I have 100 percent,” Davis replied. “A hundred percent means you can have other investors. These guys [in] the Magic Johnson group have 20 investors. So they have to go through 20 background checks. Twenty different. I have one investor. That investor is me, right? … It’s my money. It’s my money because I sold my intellectual property.
“They’re my partners because they want me to be the only partner, so I don’t have the issues that these guys are going to have with 20 different partners,” Davis said.
It’s unclear if his partners are just for the energy company or if they will be involved in the bid. It’s questionable if the NFL would only do a background on Davis if his money is funneled through a capital raise.
The fact of the matter is, according to the NFL, whoever has and puts up $2.1 billion is the primary owner. His partners more than likely will be subjected to background checks through the method Davis appears to suggest.
Bank of America, which Snyder hired to facilitate the sale, is reportedly reviewing Davis’ bid. If his bid gets submitted to the NFL’s finance committee, they will see if Davis has $2.1 billion and how that money arose.
Davis says he submitted three-of-five items for the bid checklist to the bank. He plans to send the final proof of funds to show he has the capital “by the close of business today.”
Meanwhile, the Josh Harris-led group’s $6.05 billion bid got submitted to the league and the finance committee this week. Harris, who owns the Philadelphia 76ers and New Jersey Devils, has NBA legend Magic Johnson and fellow billionaire Mitchell Rales as part of his group.
