Do you think Dan Snyder is broke?

[mistertim]

I'm thinking somewhere in the middle. I seriously doubt he's broke, but I also think he probably isn't nearly as liquid as he makes himself seem and as some people think he is. I wouldn't be surprised if his cash flow isn't all that great. But he also does have a lot of assets so he can leverage those a whole hell of a lot I'm sure.

[NoVaSkins21]

I don't care if he's broke.  I just don't want him to own the team anymore.  

[spjunkies]

The guy fails at everything he touches. He got lucky at just the right time in the 90's when his fluke business which was probably a scam hit the jackpot. 

 

Obviously the team brings him cash, just because it's the NFL, but I don't think he has the cash available to lure top tier talent in anymore. 

Edited May 17, 2022 by spjunkies

[Wildbunny]

4 hours ago, mistertim said:

I'm thinking somewhere in the middle. I seriously doubt he's broke, but I also think he probably isn't nearly as liquid as he makes himself seem and as some people think he is. I wouldn't be surprised if his cash flow isn't all that great. But he also does have a lot of assets so he can leverage those a whole hell of a lot I'm sure.

I would believe it's all relative to who you're comparing him.

 

I'm expecting him to have way much more money than me, obviously. But not that much compared to other NFL owners.

In that regard I would believe that he's relatively broke compared to other owners because the team is his only viable ressource of money. If he lose the team for any reason I would expect him to go really broke quite soon because he's not that good of a manager.

 

To me his wealthness is purely artificial in that sense.

[Ghost of]

14 hours ago, Burgold said:

Throughout the offseason, Washington has promised to be aggressive and while they were aggressive going after the QB almost every other act was to wait and see what others teams were doing and MAYBE offering to match. As for pursuing free agents to fill holes, the team has been remarkably patient. Now, while Wentz did eat up a ton of cap we know better than most how cash cures cap so the question becomes... Does Snyder have the cash to cure the cap? We know a bunch of his businesses: Six Flags, Johnny Rockets, etc. have done really poorly. We also know that Snyder is a billionaire on paper. He also just took out a huge loan (with the league's help) to buy out his minority owners. 

 

So, what do you think... Is Snyder broke?

I posted my view that he was cash poor some time back when people thought he might be forced out and to explain some of his behavior.

 

He's cash poor in comparison to how he used to be for sure. Well that and he went from being a spendthrift on player bonuses to being miserly with everything. 

[formerly4skins]

15 hours ago, MartinC said:

 

Did he buy it cash? Or did he mortgage it against other assets, like for example his NFL franchise? 

 

I have no idea what Snyders liquidity or cash flow looks like, but I wouldn't take him closing an a (ridiculously) expensive house as evidence that he has cash on hand to pay out big bonus's.

According to the article I linked he paid straight cash money. 

[Since 83]

As long as Terry gets paid, I could care less what he is at this point.

[MartinC]

2 hours ago, formerly4skins said:

According to the article I linked he paid straight cash money. 

 I would be very surprised if thats the case. Even if he has more cash than he knows what to do with there are better uses of it for him than paying for a property he lives in himself.

[D’Pablo]

My guess is that he’s super into crypto.

[Redskins 2021]

I think he is cash poor right now. Paying the lawyers for his court cases is not cheap no matter how rich he is. He may have potentialy large settlements coming up and probably need to be exstreamly carefull with his money right now.

[Chump Bailey]

 

[formerly4skins]

2 hours ago, MartinC said:

 I would be very surprised if thats the case. Even if he has more cash than he knows what to do with there are better uses of it for him than paying for a property he lives in himself.

 

Its definitely surprising that he had $48 million just lying around...but it sounds like that is the case. Quoted from the article:

 

"The home sold for $48 million in an all-cash transaction in late October."

 

https://alexandrialivingmagazine.com/home-and-garden/washington-commanders-owner-dan-snyder-buys-60-million-alexa/

[MartinC]

36 minutes ago, formerly4skins said:

 

Its definitely surprising that he had $48 million just lying around...but it sounds like that is the case. Quoted from the article:

 

"The home sold for $48 million in an all-cash transaction in late October."

 

https://alexandrialivingmagazine.com/home-and-garden/washington-commanders-owner-dan-snyder-buys-60-million-alexa/

I suppose he’s really not that bright!

[Forever A Redskin]

I think the move to not do training camp in Richmond this year is in direct correlation to the stadium deal.

[CommanderInTheRye]

Snyder's next job after selling/losing the Commanders...

 

 

 

 

 

 

For some reason while looking at this I thought of the old SNL skit "dick in a box".

 

 

[ExoDus84]

1 hour ago, formerly4skins said:

 

Its definitely surprising that he had $48 million just lying around...but it sounds like that is the case. Quoted from the article:

 

"The home sold for $48 million in an all-cash transaction in late October."

 

https://alexandrialivingmagazine.com/home-and-garden/washington-commanders-owner-dan-snyder-buys-60-million-alexa/

 

That's an awfully big house for such a little man.

 

Dan, may I suggest a dwelling more suitable for your stature?

 

[NewCliche21]

1 hour ago, MartinC said:

I suppose he’s really not that bright!

 

I don't see how someone can buy an unnecessary home at the absolute apex of a two-year run on real estate instead of waiting for maybe a month could EVER be not that bright a move. 🤣

[Darth Tater]

1 hour ago, formerly4skins said:

 

Its definitely surprising that he had $48 million just lying around...but it sounds like that is the case. Quoted from the article:

 

"The home sold for $48 million in an all-cash transaction in late October."

 

https://alexandrialivingmagazine.com/home-and-garden/washington-commanders-owner-dan-snyder-buys-60-million-alexa/

He doesn't have to have $48M just lying around to make a cash offer. For most rich people, you 'borrow' against your assets to defer the capital gains taxes (if you got a good equity position, you're interest rate is going to be very low). Did his margin account grow? Though, since it was obvious the market would crash (timing was not but you knew it would within the year), it might have been a good time to take those gains. See if he sold a lot of equity. Further, what did he do with his old residence?  Most cash offers around here are retired people who sell their DMV house for a million and bought a better house for half that or downsized and had another couple of hundred thousand to play with.

[Skinsinparadise]

I talked about this in the FA thread.  And while I agree no way for us to know for sure and we are guessing based on circumstance but that's somewhat true of most stuff we talked about.

 

My take is:

 

A.  He can never be broke considering he owns a franchise that he can probably sell for 5 billion.  So asset wise he's set.

 

B.  He had minority owners to help foot the bill now he doesn't

 

C. He has to pay back an 875 million loan for buying out his partners

 

D.  His other businesses haven't done hot, in some cases we know he lost tens of millions

 

E.  Looks like the DMV doesnt want to help him much as far as financing a new stadium and he likely has to pony up himself 1-2 billion for it

 

Feels like his financial siutation is a bit under the gun relatively speaking.   The tweet below has me curious.  Is that a good sign that he's putting in some money to improve the stadium?  but if so is that a good sign or bad sign?  On the surface its good.  Wonder if the World Cup people supposed rejecting Fedex as a stadium has something to do with it?   Maybe they are trying to convince them otherwise.  Maybe its just flat out upgrading the stadium because it needs it?  Worse case IMO would be that they are becoming resigned to doing what the Dolphins ended up doing.  Dolphins couldn't get the new stadium so they ended up rennovating their current one.

 

 

 

 

Edited May 17, 2022 by Skinsinparadise

[MartinC]

15 minutes ago, NewCliche21 said:

 

I don't see how someone can buy an unnecessary home at the absolute apex of a two-year run on real estate instead of waiting for maybe a month could EVER be not that bright a move. 🤣

Especially buying cash. His own cash. 
 

That said I’m not sure real estate has peaked. Certainly not in the Phoenix metro, prices still continue to climb.

 

Edit - then again I’m not totally plugged into the over $40M property market. 

[NewCliche21]

4 minutes ago, MartinC said:

Especially buying cash. His own cash. 
 

That said I’m not sure real estate has peaked. Certainly not in the Phoenix metro, prices still continue to climb.

 

Edit - then again I’m not totally plugged into the over $40M property market. 

 

Even if not the peak, it's not like the guy was homeless or being evicted and he needed to buy and buy right now.

The dumbassery is just, wow.

 

And good for you to being totally plugged into the UNDER $40M property market 

[MartinC]

3 minutes ago, NewCliche21 said:

 

Even if not the peak, it's not like the guy was homeless or being evicted and he needed to buy and buy right now.

The dumbassery is just, wow.

 

And good for you to being totally plugged into the UNDER $40M property market 

Not so much plugged as chained. And I didn’t say how far under 😂
 

On a tangent from the story on the link to the house he bought - apparently that was previously owned by an Executive from Lockheed Martin - well know defense contractor. Good to see our tax dollars and defense spending getting such good value from suppliers. 

[CapsSkins]

I used to run investments for an A-list celebrity who is very wealthy. I know people who did a similar job for other very high net worth people.

 

A few observations:

 

1) Very wealthy people can indeed be over-leveraged and cash poor. Wealthy people have access to sizable amounts of debt, which they can use for everything from investing in businesses or assets to straight up consumption. Taking on sizable debt to buy a private plane, for example, is not a particularly wise decision but a lot of rich people still do it. Net worth can be very high but tied up in real estate and other illiquid assets - often with high debt service payments - and free cash flow might be surprisingly limited.

 

2) Often times the richer the person, the cheaper / stingier they are.

 

3) Sometimes these people will spend super lavishly in one area and then simultaneously cry poor in another area. 

 

I don't know what Snyder's financial picture looks like. But I wouldn't be surprised if he's either cash poor or has decided to limit the cash expense on the team

[Zim489]

5 hours ago, Skinsinparadise said:

I talked about this in the FA thread.  And while I agree no way for us to know for sure and we are guessing based on circumstance but that's somewhat true of most stuff we talked about.

 

My take is:

 

A.  He can never be broke considering he owns a franchise that he can probably sell for 5 billion.  So asset wise he's set.

 

B.  He had minority owners to help foot the bill now he doesn't

 

C. He has to pay back an 875 million loan for buying out his partners

 

D.  His other businesses haven't done hot, in some cases we know he lost tens of millions

 

E.  Looks like the DMV doesnt want to help him much as far as financing a new stadium and he likely has to pony up himself 1-2 billion for it

 

Feels like his financial siutation is a bit under the gun relatively speaking.   The tweet below has me curious.  Is that a good sign that he's putting in some money to improve the stadium?  but if so is that a good sign or bad sign?  On the surface its good.  Wonder if the World Cup people supposed rejecting Fedex as a stadium has something to do with it?   Maybe they are trying to convince them otherwise.  Maybe its just flat out upgrading the stadium because it needs it?  Worse case IMO would be that they are becoming resigned to doing what the Dolphins ended up doing.  Dolphins couldn't get the new stadium so they ended up rennovating their current one.

 

 

 

 

The NFL cares the most about stadiums. If Dan cant get the stadium done I think the NFL forces him out. Its really the only thing the fan base has to look forward to. Well besides Dan dying 

[Skinsinparadise]

15 minutes ago, Zim489 said:

The NFL cares the most about stadiums. If Dan cant get the stadium done I think the NFL forces him out. Its really the only thing the fan base has to look forward to. Well besides Dan dying 

 

Agree that this stadium issue is what ironically could end up sinking him.   It seems like the stadium is the team's excuse for low attendance and supposedly according to reporters the NFL is concerned about their low attendance.  They didn't even get a prime time game at home this season, i am sure that's no coincidence. 

 

If the stadium issue becomes a struggle, it should be interesting to see how it plays out.  Dan seems like he might be leveraged financially with the 875 million loan he took to buy out the minority partners.  And at least according to the Virginia press, the idea for a stadium in Virginia would have Dan footing 2 billion for the stadium.

 

I know some think "shrug" about all of this and Dan is likely more than good.  Maybe they are right.  I don't know.  But to me this at least is potentially a problem for him.  This is a much bigger financial committment than he needed to make to buy the team if he intends to shoulder most of the expense for a stadium and he'd be doing it while shouldering a lot of debt.

 

At a minimum i'd think he might need to sell some shares again to minority partners.

 

I don't think its a good look that the Bills are moving along with their stadium quest with major public financing while Dan has been at this for years and seemed to make almost no headway and can't seem to even leverage that he has potentially three areas competiting for the stadium which is unique compared to most other teams.  I recall Bruce was smug talking aboout the stadium quest like 5 years ago.  Yet here we are still. 

 

https://huddleup.substack.com/p/wft-dan-snyder-pays-875m-for-100?s=r

Snyder originally borrowed $340M and assumed $155M of debt on the stadium when he acquired control of the franchise in 1999, but with an estimated $50M in annual loan servicing costs, he quickly needed additional capital.

Looking to pay down the team’s debt in 2003, Snyder sold 35% of the franchise to Dwight Schar, Robert Rothman, and Frederick Smith for more than $400M.

Edited May 18, 2022 by Skinsinparadise