Lawsuit Accuses Washington Commanders Of Cheating Ticket Holders Out Of Deposit Money

Topline

Washington, D.C., Attorney General Karl Racine filed a lawsuit against the Washington Commanders on Thursday over allegations the team illegally kept “hundreds of thousands of dollars” in security deposits from fans after their ticket packages expired, in the latest legal headache for the beleaguered NFL franchise.

CHICAGO, ILLINOIS – OCTOBER 13: Washington Commanders fans look on during the second quarter against … [+] the Chicago Bears at Soldier Field on October 13, 2022 in Chicago. (Photo by Michael Reaves/Getty Images)

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Key Facts

Racine said in his civil suit the Commanders “capitalized” on fans with premium, long-term ticket packages who had forgotten about their deposits, while imposing “burdensome conditions” on fans who asked for their deposits back.

Fans who requested their deposits back were often asked “to submit a signed written request” even though that wasn’t stipulated anywhere in their contract with the team, which allegedly continued the practice even after an employee informed executives in 2009 that doing so might be illegal.

The average security deposit for a premium seating contract was $1,200, but payments could range from “a few hundred dollars to several thousand dollars,” according to the suit.

A Commanders spokesman told Forbes the team hired outside forensic auditors who “found no evidence that the team intentionally withheld security deposits that should have been returned to customers or that the team improperly converted any unclaimed deposits to revenue.”

Crucial Quote

“Commanders executives seem determined to lie, cheat, and steal from DC residents in as many ways as possible,” Racine tweeted.

Key Background

The Commanders have been embroiled in scandal for years, after rampant sexual misconduct allegations were first publicized by the Washington Post in 2020. Pressure has only grown since then for longtime owner Daniel Snyder to sell the team, as legal problems mount. Racine filed a separate suit last week against the Commanders and the NFL as a whole, alleging collusion between the two parties over an investigation into the misconduct accusations. That internal investigation led to a $10 million fine for the Commanders organization, though the results of the probe were never made public. The House Committee on Oversight and Reform has also launched an investigation into the team’s toxic workplace culture.

What To Watch For

The Commanders said earlier this month that Snyder has hired Bank of America to explore a potential sale. It’s not clear whether he hopes to sell part of the team or the entire franchise.

Forbes Valuation

We estimate the Commanders to be worth $5.6 billion, making them the sixth-most-valuable NFL team. If the entire franchise is sold, it would likely shatter the record for the most ever paid to buy a sports team.