[ARETE] Sport and Society -Billions and Snyder

[richard crepeau]

SPORT AND SOCIETY FOR ARETE

JULY 25, 2023



A year ago, the Denver Broncos of the National Football League sold for a record $4.6B dollars. But as they say in sports, “records are set to be broken.” It is only a slight surprise that the Washington franchise has just been sold for $6.05B. The buyer is Josh Harris, described as a private equity billionaire, who put together a group of  buyers. Harris is the owner of the Philadelphia 76’s of the NBA and the New Jersey Devils of the NHL. The reluctant seller is Daniel Snyder.

This transaction comes at the end of a long process of revelation, scandal, and disgust with Daniel Snyder. His list of transgressions seems infinite in length, as it reaches back well over a decade. Part of Snyder’s problem lay in his arrogance and his unwillingness to consider the desires of the league or the public. How many teams sue their fans? Snyder was also the first owner to charge an admission to practice sessions.

Some of his worst qualities were on almost constant display over the past decade or more. Native American groups, the general public, and many in football called for Snyder to change the name and mascot of the team. The owner was adamant, vowing to never change the name as long as he owned the team. As time passed, public pressure increased as did pressure from sponsors, advertisers, and the League. Calls for Snyder to sell the team also grew in number and volume.

Snyder’s mismanagement touched many areas. He made bad trades and spent lavishly on big name players who were beyond their peak years and soon retired. Coaches came and went. The team didn’t make the Super Bowl or the Conference Championship game under Snyder’s ownership. Attendance declined and, in response, 10,000 seats were removed from the stadium.

In 2012, the team was fined $18M for two years of salary cap violations. He fought the fine as did Jerry Jones of the Cowboys. The two owners became allies, and Jones became one of the leading defenders of Dan Snyder.

In 2018, several cheerleaders charged the Washington team with sexual harassment. Among other things, the team insisted that the women serve as hosts and as entertainment at team events for sponsors and wealthy supporters. The cheerleaders were not paid and working conditions were poor. On a trip to Costa Rica, the cheerleaders posed topless for a photo shoot with assurances that it would be a private event, only to find out that the team had invited spectators. After the photo session, the cheerleaders were required to go on dates with male guests.

In 2020, more charges of sexual harassment and misconduct were bought by fifteen female employees, and this was followed by similar charges by another twenty-five female employees. Two years later, a Congressional investigation concluded that Snyder had conducted a parallel investigation to that conducted by the NFL. Snyder hoped to be able to intimidate those women who had brought the charges against him and the team. Finally in October, one owner, James Irsay of the Indianapolis Colts, publicly said it was time for Snyder to go.

If all of this was not enough, and it wasn’t, there was more to come. After Snyder agreed to sell the team, a search began for an investor or team of investors. The process concluded last week with the sale described above, followed by the approval of the sale by all 31 team owners. This process moved forward during a seventeen-month investigation of the team and of Snyder by the NFL.

Once the sale was completed, the NFL almost immediately issued a scathing report on the results of its investigation. The report affirmed all the charges of sexual misconduct against Snyder and the team, found the team guilty of hiding shared revenue from the league, and charged that Snyder went to extraordinary lengths to interfere with the investigation while pledging his full cooperation with the league. The NFL fined Snyder $60M.

As noted previously, the sale price was $6.05B. Snyder should have no trouble coming up with the $60M to pay his fine. Two questions arise out of these events: (1)Was the fine adequate, and (2)why did it take so long for the NFL to move against Snyder? The fine certainly worked no hardship on Snyder who had purchased the team for $800M and was now selling it for $6.05B. So, was the fine adequate?

To the second question, why did it take so long for the NFL to finally move on Snyder? League owners and league leadership played a role. From the initial complaints regarding the team’s name to the end, it was nearly a decade during which the NFL refused to act. From the first complaints on sexual harassment to Snyder’s departure was five years. What is clear in all this is that the NFL has not been serious about its pronouncements on equality or against sexism. As with so many NFL issues, Commissioner Roger Goodell failed to lead, instead, he moved cautiously, knowing his bosses, the owners, did not want leadership but only PR protection posing as leadership.

Among other things, the case of Dan Snyder reveals the true nature of the NFL, the hypocrisy of Roger Goodell, and a preference for looking good over doing what it claims it believes in. Will this hurt the popularity of the NFL? No. Will it change behaviors within or by the league or team owners? Perhaps a little but certainly not enough. Meanwhile, the NFL continues to increase its popularity, and franchise values continue to shoot ever upwards.

On Sport and Society this is Dick Crepeau reminding you that you don’t have to be a good sport to be a bad loser.



Copyright 2023 by Richard C. Crepeau

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