Topline
Top executives of the Washington Commanders and billionaire owner Daniel Snyder may have engaged in an illegal scheme that withheld money from thousands of fans and fellow NFL teams, according to the House Oversight Committee, which has been investigating the team over rampant allegations it ran a toxic workplace.
Owner Daniel Snyder of the Washington Commanders looks on before the game against the Minnesota … [+]
Key Facts
In a letter to the Federal Trade Commission on Tuesday asking it to investigate, committee chairwoman Carolyn Maloney (D-N.Y.), and Rep. Raja Krishnamoorthi (D-Ill.) wrote that they had evidence that for over a decade, the team withheld security deposits from season ticket holders that should have been refunded, with the total reaching $5 million as of 2016.
The team also underreported ticket revenue to the NFL in order to cut down how much it gave other teams through the league’s revenue-sharing initiative by using “two sets of books,” according to the committee, which cites documents provided by former team sales executive Jason Friedman.
The team allegedly attributed some of the ticket revenue to other events at FedEx Field, its home stadium, which Snyder also owns.
For example, executives in 2013 appeared to discuss reclassifying $88,000 in shareable revenue as coming from a Kenny Chesney concert at FedEx Field, according to the letter.
NFL spokesman Brian McCarthy said the league is working with Obama-era Securities and Exchange Commission Chairwoman Mary Jo White to investigate the “serious matters raised by the committee.”
The Commanders did not respond to a request for comment from Forbes, but the team last week denied any wrongdoing after news surfaced the committee had heard allegations of the team withholding revenue.
Crucial Quote
“This new information on potential financial misconduct suggests that the rot under Dan Snyder’s leadership is much deeper than imagined,” Maloney said in a statement. “It further reinforces the concern that this organization has been allowed to operate with impunity for far too long.”
What To Watch For
The Federal Trade Commission has the authority to investigate “unfair or deceptive business practices.”
Key Background
The House Oversight Committee uncovered the potential financial misconduct as part of an investigation into accusations the Commanders organization was a toxic workplace for women. A 2020 Washington Post exposé first publicized the claims against the team, including alleged sexual advances from top executives toward entry-level female employees. The team was fined $10 million last year after an NFL investigation into the claims, while Snyder agreed to step away from his day-to-day role as the team’s top manager. The league announced in February it had launched another investigation into Snyder after multiple sexual harassment allegations against him surfaced.
Tangent
A group of six Democratic attorneys general sent a letter to NFL Commissioner Roger Goodell last week threatening an investigation into the league, citing “deep concerns” stemming from a February New York Times report where more than 30 former female staffers said women were regularly harassed and passed over for promotions.
Further Reading
Six Attorneys General Threaten NFL Investigation Over Toxic Workplace Allegations For Women (Forbes)
From dream job to nightmare (Washington Post)
Promised a New Culture, Women Say the N.F.L. Instead Pushed Them Aside (New York Times)
Source: https://www.forbes.com/sites/nicholasreimann/2022/04/12/washington-commanders-withheld-millions-from-season-ticket-holders-and-other-nfl-teams-house-committee-claims/