RIGHT OF FIRST REFUSAL
The right of first refusal (ROFR) is created by a contract between two parties. The contract provides that if one of the owners of the business or property decides to sell his share of the business, he must first give the other owners the opportunity to buy his share before bringing in a third party. More specifically, the owner of the ROFR must be given the same opportunity to enter that transaction on the same terms. The selling owner may only go forward with the business transaction with the third party should the ROFR holder decline the opportunity.
The Daniel Snyder - Washington Football Team Saga Continues
Just a few weeks after Jeff Bezos announced he was stepping down as Amazon's CEO, a series of court documents obtained by Front Office Sports indicate that Bezos is making moves to become the owner of the Washington Football Team. Bezos’ attorney reportedly spoke with Baltimore-based sports investment banking firm Moag & Co., which has been leading the effort to sell a chunk of the team.
In 2016, Moag was hired by one of the minority owners, Fed-Ex chief executive Frederick Smith, to sell his 10 percent stake in the team. Moag reportedly found a willing buyer, but Snyder didn't follow through. Washington Post.
Then in 2019, the other two minority partners, real estate mogul Dwight Schar and investor Robert Rothman, joined Smith to sell their collective 40 percent stake in the franchise. Two California billionaires, Behdad Eghbali and Jose Feliciano, offered to purchase the minority stake last year. However, Snyder blocked Schar from selling his stake by using his right of first refusal -- As majority owner, Snyder holds the right of first refusal, which gives him “first dibs” on any sale. As a result, a lawsuit was filed by the three co-owners, accusing Snyder of blocking their effort to sell their collective shares.
With a net worth of $186 billion, Bezos seems to be a likely candidate who surely can afford it. However, it remains to be seen whether Bezos will actually become the new owner of the Washington Football Team.