The Washington Commanders will have new private equity owners if NFL owners approve the $6 billion deal. Buyers includes Josh Harris and David Blitzer, both private equity underwriters (PEU). Harris left Apollo Global Management in 2022 while Blitzer remains with Blackstone.
Another member of the group purchasing the Commanders is Mitchell Rales. Rales formed Equity Group Holdings in 1979.
Using junk bonds, they bought a diversified line of businesses.
That makes Rales a pioneering PEU... somewhat of a founding father. A 2003 SEC filing shows Equity Group Holdings (via three separate funds) and Mitchell Rales' stake in Danaher Corp.
At least three new Commanders owners benefited from preferred "carried interest" taxation for decades. Josh Harris' estimated net worth is $6 billion. David Blitzer's is nearly $2 billion and Mitchell Rales' is just over $5 billion. Low tax rates helped them grow their monstrous fortunes.
Commanders seller Dan Snyder's net worth is nearly $5 billion.
Snyder had PEU RedZone Capital. The Guardian reported on the football team's sale:
....multiple investigations by the league and Congress into Washington’s workplace misconduct and potential financial improprieties. The congressional investigation found Snyder played a role in a toxic culture.
The Washington Commanders created a “toxic work culture” for more than two decades, “ignoring and downplaying sexual misconduct” by men at the top levels of the organization
I found part of the RedZone Capital logo on a table hosting a Washington Commanders luncheon and used it to create the unoffical logo (pictured above). The table image is below:
U.S. elected officials cater to the billionaire class while ignoring public opinion on many issues. Politicians Red and Blue love PEU and increasingly, more are one.
PEU boys want your ticket and refreshment money. They also love government handouts. Can anyone say "new stadium deal?" The fleecing continues.
Update: The NFL Finance Committee noted an "unusually large number of limited partners." It's a club deal for an NFL football club.
Update 5-14-23: Also on the large number of limited partners list:
Mark Ein - Founder VentureHouse Group, early in his career he worked for The Carlyle Group.
Lee Ainslie - Founder and Managing Partner of Maverick Capital. He worked for Tiger Management.
Eric Holoman -- Managing Partner of JLC Infrastructure (MJE-Loop Capital Partners).
Earvin Magic Johnson -- founder Magic Johnson Enterprises and JLC Infrastructure (MJE-Loop Capital Partners).
Michael Li -- Owner of The Range Group
Santo Domingo family -- Alejandro Santo Domingo is Senior Managing Director for Quadrant Capital Advisors
Michael Sapir --Chairman and CEO of ProShare Advisors, ProFund Advisors LLC, Managing Partner of ProShare Capital Management LLC
Eric Schmidt--Google founder with family office Hillspire LLC.
Andy Snyder -- CEO of Cambridge Information Group, a family owned investment firm.
Update 5-15-23: Joshua Harris holds over $2.2 billion in Apollo Global stock alone (35 million shares).
Update 8-10-23: Harris et al have brought back the Redskins name for internal team discussions. Let's hope they don't bring back the N word for fellow owner Magic Johnson.
