Washington Football Team majority owner Dan Snyder is accused of blocking the sale of the team’s minority shares. Three Washington minority partners — Fred Smith, chairman of FedEx, Robert Rothman, an asset manager, and Dwight Schar, founder of a home building company — are asking a federal judge in the US District Court in Maryland to allow them to sell their 40% share of team ownership collectively, according to the New York Times.
The three limited partners said in the filing, they received an offer of $900 million for their combined shares. However, Snyder has given legal notice to the trio that he will exercise his right of first refusal. Yet, he offered to buy out Smith and Rothman, collectively, but not Schar.
Smith and Rothman together own 25 percent of the team. Schar owns the remaining 15% of the franchise.
That violates their partnership agreement, which allows Snyder to buy them all out collectively, not individually, according to the three minority partners.
The potential buyer is not named in the filing, but the window to negotiate is stated to expire on Nov. 25.
Washington Football Team is estimated to be valued at $3.5 billion, according to Forbes. The $900 million offer for 40% of ownership falls about $500 million short of the team’s value.
The three minority partners have been looking to sell their shares for sometime. The struggle of power has included Snyder withholding annual dividend payments from the three; Smith, through his FedEx, pressuring Snyder to change the team’s name; and Snyder removing the three from the team’s board. That prompted the NFL to intervene with the commissioner’s office appointing an arbitrator this past summer.
Now, it appears, Smith, Rothman and Schar are looking for an out-house resolution.
