Daniel Snyder

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Daniel Snyder
Dan Snyder (cropped).jpg
Snyder in 2015
Born (1964-11-23) November 23, 1964 (age 55)
NationalityAmerican
OccupationMajority owner of the Washington Football Team
Net worthUS$2.6 billion (2020)[1]

Daniel Marc Snyder (born November 23, 1964) is an American businessman who is the majority owner of the Washington Football Team, an American football team belonging to the National Football League (NFL). Snyder bought the team, then known as the Redskins, from Jack Kent Cooke's estate in 1999. He was also the founder of Snyder Communications.

Early life and education[edit]

Snyder was born on November 23, 1964[2] in Maryland,[3][4] the son of Arlette (née Amsellem) and Gerald Seymour "Gerry" Snyder.[5][6] His family is Jewish.[3][7][8] His father was a freelance writer who wrote for United Press International and National Geographic.[4] He attended Hillandale Elementary School in Silver Spring, Maryland. At age 12, he moved to Henley-on-Thames, a small town near London, where he attended private school.[4] At age 14, he returned to the United States and lived with his grandmother in Queens, New York. A year later, his family moved back to Maryland and he graduated from Charles W. Woodward High School in Rockville, Maryland.[4] His first job was at B. Dalton bookstore in the White Flint Mall.[4]

At 17, Snyder experienced his first business failure when he partnered with his father to sell bus-trip packages to Washington Capitals fans to see their hockey team play in Philadelphia.[9] By age 20, he had dropped out of the University of Maryland, College Park[10] and was running his own business, leasing jets to fly college students to spring break in Fort Lauderdale and the Caribbean.[4] Snyder claims to have cleared US$1 million running the business out of his parents' bedroom with a friend and several telephone lines.[11]

Snyder courted real estate entrepreneur Mortimer Zuckerman, whose US News & World Report was also interested in the college market and who agreed to finance his push to publish Campus USA, a magazine for college students.[4] Zuckerman and Fred Drasner, co-publisher of Zuckerman's New York Daily News, invested $3 million in Campus USA.[4] The venture did not generate enough paid advertising and was forced to close after two years.[4]

Career[edit]

In 1989, Snyder and his sister Michele founded a wallboard advertising (the sale of advertisements placed on boards inside buildings) company with seed money from his father, who took a second mortgage on his property in England, and his sister, who maxed out her credit cards at $35,000.[4] They concentrated on wallboards in doctors' offices (where there was a captive audience) and colleges. They married the advertisement with the distribution of product samples – such as soaps and packages of medicine – to differentiate themselves from their competitors.[4] The company was named Snyder Communications LP. The business was a great success and Snyder and his sister grew the business organically and through acquisitions[4] and expanded its activities to all aspects of outsourced marketing, including direct marketing, database marketing, proprietary product sampling, sponsored information display in prime locations, call centers, and field sales.[citation needed] They expanded their geography from colleges and doctors' offices to hospital maternity areas, private daycare centers, and Fixed Based Operations (FBO), or private aircraft lounges in major airports throughout the country.[citation needed] In 1992, the company expanded into telemarketing with a focus on the yet untapped immigrant market. Snyder Communications revenues rose from $2.7 million in 1991 to $4.1 million in 1992 and $9 million in 1993.[4] Proprietary product sampling was introduced in 1992 through their network of private daycare centers.[citation needed]

In an initial public offering for SNC in September 1996, Daniel Snyder became the youngest ever CEO of a New York Stock Exchange listed company at the age of 32.[12] Snyder's top investors, including media mogul Barry Diller, New York investor Dan Lufkin, and Democratic Party icon Robert Strauss, earned significant returns on their initial investment.[4] Mortimer Zuckerman and Fred Drasner, whom Snyder owed $3 million from the failure of his first business venture, were given company stock, which ended up being worth over $500 million.[4] His parents sold their stock in the company for over $60 million.[4]

He continued to expand the company aggressively through a string of acquisitions, including Arnold Communications in 1997. By 1998, the company had over 12,000 employees and $1 billion in annual revenues.[4] In April 2000, Snyder Communications was sold to the French advertising and marketing services group Havas in an all-stock transaction valued at in excess of US$2 billion, the largest transaction in the history of the advertising/market industry[citation needed]. Snyder's personal share of the proceeds was estimated to be US$300 million.[13]

Washington Football Team ownership[edit]

In May 1999, Snyder purchased the Washington Football Team, then known as the Redskins, along with Jack Kent Cooke Stadium (now FedExField) for $800 million following the death of previous owner Jack Kent Cooke.[4] At the time, it was the most expensive transaction in sporting history.[14] The deal was financed largely through borrowed money, including $340 million borrowed from Société Générale and $155 million debt assumed on the stadium.[13] Annual loan servicing costs are an estimated $50 million.[13] To pay down the team's debt, in 2003, he sold 15% of the team to real estate developer Dwight Schar for $200 million, 15% to Florida financier Robert Rothman for a like amount; and 5% to Frederick W. Smith, the founder of FedEx, leaving him with a 65% ownership interest.[4] Since Snyder became owner, the team's annual revenue increased from more than $100 million a year when Snyder took over the team in 1999 to around $245 million by 2005.[15]

By the late 2010s, Snyder began serving on six National Football League committees, including appointments to the Broadcast Committee, the Business Ventures Committee, the Digital Media Committee (for which he serves as Co-Chair), the International Committee, the Stadium Committee and the Hall of Fame Committee (which oversees the Pro Football Hall of Fame in Canton, Ohio).[16] Separately, he is also a member of the Board of Trustees of the Pro Football Hall of Fame.[17]

Criticism[edit]

Since Snyder bought the Washington Football Team, the team has had a losing record (142–193–1 through the end of the 2019 season).[18] They have also gone through eight head coaches in 17 seasons.[19] In October 2009, several articles in Washington area newspapers criticized Snyder, alleging that his managerial style was partly to blame for the Redskins' on-field struggles.[20][21][22] A November 24, 2009, article in the Wall Street Journal also questioned whether Snyder's leadership style had alienated the Redskins fan base.[23] The article quotes from a Harris Interactive poll showing that whereas the Redskins in 2003 were the 6th most popular NFL team nationally, by 2009 they had fallen to No. 17, but in 2014 had climbed to No. 10.

Under Snyder, the team sued season ticket holders who were unable to pay during the 2008–2009 U.S. recession. Snyder did this despite his claim that there are over 200,000 people on the season ticket waiting list.[24] Partway through the 2009 season, Snyder banned all signs from FedExField, leading to further fan discontentment.[25][26] The ban was lifted shortly thereafter.[27]

Writing in Forbes magazine, Monte Burke states that distaste for Snyder has made the team name controversy worse than it needed to be, but there are others who defend his position.[28][29] Redskins fans have also expressed discontentment about rising ticket and parking prices, and Snyder's policy of charging fans for tailgates in special areas of the stadium lot.[30] The Redskins did not raise ticket prices from 2006 through 2012.[31] Fans have also complained about the game-day experience.[4] While problems such as traffic and parking were inherited when Snyder bought the team, fans have expressed displeasure with Snyder-led initiatives that they feel distract from the enjoyment of attendance. In 2020, The Washington Post published a series of articles alleging that over 40 women who were former employees of the organization, including office workers and cheerleaders, had been sexually harassed and discriminated against by Snyder and other male executives, colleagues, and players of the team since at least 2006.[32][33]

Redskins name controversy[edit]

Since his purchase of the Redskins in 1999, Snyder has been repeatedly pressured to change the team's name by numerous fans, politicians, and advocacy groups because redskin is a derogatory term for Native Americans. In May 2013, in response to a question regarding the teams' Federal Trademark, Snyder told USA Today "We'll never change the name. It's that simple. NEVER—you can use caps."[34] Following his refusal to meet with Native American advocates for name change, Snyder was framed as an enemy of their cause. A pitched public relations battle in 2013 and 2014[35] led Snyder to employ crisis management and PR firms in an effort to defend the name.[36][37] Snyder's creation of the Washington Redskins Original Americans Foundation in 2014 was seen as a "cheap effort to buy favor from Indian communities".[35]

Following renewed attention to questions of racial justice in wake of the George Floyd protests in 2020, a letter signed by 87 shareholders and investors was sent to team and league sponsors Nike, FedEx, and PepsiCo urging them to cut their ties unless the name was changed.[38][39][40] Around the same time, several retail companies had begun removing Redskins merchandise from their stores.[41][42] In response, the team underwent a review in July 2020 and announced they would be retiring the name,[43][44] with a new name and logo to be chosen at a later date.[45][46] As a team rebranding process usually takes over a year, the team will be temporarily playing as the Washington Football Team for the 2020 season.[47][48][49]

Defamation suit[edit]

Threatening a lawsuit in January 2011, Snyder demanded dismissal of Washington City Paper's sports writer Dave McKenna, who had penned a lengthy article for the alternative newspaper called "The Cranky Redskins Fan's Guide to Dan Snyder",[50] creating a critical list of controversies involving Snyder. McKenna had been needling Snyder for years in his columns, and the front-page of the article had a defaced picture of Snyder with Devil's Horns and a scraggly beard, which incensed Snyder who felt the picture was antisemitic.[51] Other sportswriters have come out in support of McKenna.[52] In a statement released by the Simon Wiesenthal Center, while acknowledging that public figures are fair game for criticism, said the artwork used by the City Paper was reminiscent of "virulent anti-Semitism going back to the Middle Ages" and urged the City Paper issue an apology. Mike Madden of the City Paper issued a statement saying they take accusations of antisemitism very seriously and said the artwork was meant to "resemble the type of scribbling that teenagers everywhere have been using to deface photos" and the cover art was not an antisemitic caricature.[53] In February 2011, Snyder filed a lawsuit against the City Paper before dropping it in September 2011.[54]

Environmental[edit]

In 2004, Snyder brokered a deal with the National Park Service to remove old growth trees from the 200 feet (61 m) of national parkland behind his home to grant him a better view of the Potomac River, on the condition that Snyder would replace the trees with 600 native saplings. Lenn Harley, a real estate broker who was not involved in Snyder's purchase of the estate but was familiar with the area, estimated that the relatively unobstructed view of the river and its surroundings that resulted from Snyder's clearing could add $500,000 to $1 million to his $10 million home's value.[55] The clearcutting was started without approval from Montgomery County, Maryland, and without environmental assessments, as required by law. As a result, Snyder was fined $100 by the Maryland-National Capital Park and Planning Commission in December 2004. Snyder's neighbors also filed complaints regarding his clearcutting of scenic and historic easements behind his home.[56]

The NPS ranger that investigated the complaints of Snyder's neighbors and clearcutting along the Potomac was transferred multiple times due to his continued pursuit of the complaints and the Snyder property. Eventually, the NPS ranger filed a whistleblower complaint regarding the Snyder case. Later, the ranger's anonymity as a whistleblower was lost, potentially leading to extreme harassment and a trial of the park ranger, ultimately ending the ranger's career.[57] Snyder has still not replanted the trees and has faced no other consequences aside from his fine.[58]

Other ventures[edit]

Snyder owned expansion rights to an Arena Football League team for the Washington, D.C. market before the 2009 demise of the original league.[59] He purchased the rights to the team for $4 million in 1999. The team was going to be called the Washington Warriors and play their games at the Comcast Center in 2003 but the team never started.[60]

In 2005, he bought 12% of the stock of amusement park operator Six Flags through his private equity company RedZone Capital. He later gained control of the board placing his friend and ESPN executive Mark Shapiro as CEO and himself as chairman.[4] In April 2009, the New York Stock Exchange delisted Six Flags' stock as it had fallen below the minimal required market capitalization.[61] In June 2009, Six Flags announced that they were delaying a $15 million debt payment and two weeks later, Six Flags filed for Chapter 11 bankruptcy protection.[62] As part of the reorganization, 92% of the company ended up in the hands of their lenders[63] with Snyder and Shapiro being removed from their positions.[64]

In July 2006, Red Zebra Broadcasting launched a trio of sports radio stations in Washington, D.C.[25] He purchased other radio stations in the mid-Atlantic region, and intends to broadcast coverage of Washington Redskins games on all of his stations.[4] The same month, Snyder and other investors signed a deal to provide financing to the production company run by Tom Cruise and his partner, Paula Wagner. This came one week after Paramount Pictures severed its ties with Cruise and Wagner.[65] Snyder is credited as an executive producer for the 2008 movie Valkyrie, which stars Cruise.[66]

In February 2007, it was announced that Snyder's private equity firm Red Zone Capital Management[4] would purchase Johnny Rockets, the 1950s-themed diner chain.[67] RedZone Capital Management sold the company to Sun Capital Partners in 2013.[68] From 2007 to 2012, Snyder also owned Dick Clark Productions.[69][70]

Personal life[edit]

Snyder married Tanya Ivey in 1994, a former fashion model from Atlanta. She is now a national spokesperson for breast cancer awareness.[4][71][72] They have three children.[71][73]

He contributed $1 million to help the victims of the September 11 attacks; he donated $600,000 to help victims of Hurricane Katrina; and he paid the shipping costs for charitable food shipments to aid those affected by the 2004 tsunami in Indonesia and Thailand. His disaster relief efforts continued in 2016 following Hurricane Matthew, dispatching his private plane to provide emergency supplies in the Bahamas and medical supplies to Hospital Bernard Mevs in Port-au-Prince, Haiti.[74][75]

In 2000, Snyder founded the Washington Redskins Charitable Foundation, which is active in the Washington, D.C. area.[76] Snyder has been a long-time supporter of Youth For Tomorrow, an organization founded by former Redskins head coach and Pro Football Hall of Famer Joe Gibbs. In April 2010, the organization presented Snyder with its Distinguished Leader Award.[77]

In 2014, Snyder formed the Washington Redskins Original Americans Foundation to provide opportunities and resources to aid Tribal communities. The foundation was formed to address the challenges in the daily lives of Native Americans.[78] Snyder has also supported the Washington's Children's Hospital, the National Center for Missing and Exploited Children (NCMEC), and other organizations.[79] In May 2014, Snyder and his wife Tanya received the Charles B. Wang International Children's Award from the NCMEC.[80]

In 2005, Snyder was inducted as a member of the Greater Washington Jewish Sports Hall of Fame.[81] Snyder owns a corporate jet, a Bombardier BD-700 Global Express XRS.[82]

References[edit]

  1. ^ https://www.forbes.com/profile/dan-snyder/
  2. ^ Washington Jewish Week: "Five local Jews make Forbes richest list" Archived September 5, 2012, at the Wayback Machine October 7, 2009
  3. ^ a b Forbes Israel: Jewish Billionaires – Profile of Dan Snyder April 14, 2013 (in Hebrew)
  4. ^ a b c d e f g h i j k l m n o p q r s t u v w x Washingtonian: "The Dan Snyder You Don't Know – To disgruntled fans, the Redskins owner Is a spoiled rich kid who treats the team like a toy—and a money machine. People close to him say it ain't so" By Harry Jaffe September 1, 2006
  5. ^ "Forward Motion". The Washington Post. September 15, 2002.
  6. ^ Fadool, Cynthia R. (1976). Contemporary Authors: A Bio-bibliographical Guide to Current Authors and Their Works. ISBN 9780810300286.
  7. ^ USA Today: "Jerry Jones: Dan Snyder sensitive to Redskins name controversy because he's Jewish" by Lindsay H. Jones October 13, 2013
  8. ^ Jewish Virtual Library: "Daniel Snyder" retrieved October 24, 2013
  9. ^ "Billionaire Profile: Daniel Snyder". SeeResumes.com.
  10. ^ Dan Patrick:Outtakes with Daniel Snyder
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  51. ^ https://www.nytimes.com/2011/02/07/business/media/07carr.html?pagewanted=all&_r=0
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  53. ^ http://www.washingtoncitypaper.com/blogs/citydesk/2011/02/02/on-the-matter-of-dan-snyders-horns/
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  63. ^ Bloomberg: "Six Flags Would Be Owned by Lenders Under Proposal (Update2)" By Steven Church August 21, 2009
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  65. ^ Adler, Neil (August 28, 2006). "Dan Snyder accepts latest mission: Tom Cruise". The Washington Business Journal.
  66. ^ "Daniel M. Snyder – Fandango". Fandango.
  67. ^ Sorkin, Andrew Ross (February 9, 2007). "Footballs, Funhouses and Fries". The New York Times.
  68. ^ Luna, Nancy (June 18, 2013). "O.C.-based burger chain Johnny Rockets sold". The Orange County Register. Retrieved June 18, 2013.
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  70. ^ "Investment firm picks up Dick Clark Productions". Entertainment Weekly. September 4, 2012. Retrieved January 7, 2015.
  71. ^ a b Battista, Judy (September 25, 2009) "Wife of Redskins Owner Finds Her Voice in Cancer Fight". New York Times
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  74. ^ "Dan Snyder sends plane to Bahamas to assist with hurricane relief". CSN Mid-Atlantic. Retrieved October 9, 2016.
  75. ^ Andrews-Dyer, Helena. "Redskins player Pierre Garçon heads to Haiti on team owner Dan Snyder's private jet". The Washington Post. The Washington Post. Retrieved October 10, 2016.
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  82. ^ Photo Search Results | Airliners.net

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