Strip Club Expenses Could Be Just The Start In NFLPA Investigation

Lloyd Howell Jr. resigned as the Executive Director of the National Football League Players Association (NFLPA) amidst allegations of conflicts of interest and expense impropriety. It’s a startling turn for an organization known for stability; Howell was just its third executive director in the last 42 years.

Howell may have left the NFLPA, but reading the reports and having investigated hundreds of similar matters, my immediate reaction was that any probe should not just continue, but also expand in scope. This article will focus on why, and what that investigation might look like.

Executives Have A Fiduciary And Moral Responsibility

Athletes take fiscal management of their unions seriously, as they should. External to unions, athletes targeted for fraud prorates to a billion-dollar issue based on this Ernst & Young study (which, full disclosure, I co-authored when I was at the firm). Union executives – who have a legal and fiduciary responsibility to their members – should be held to the highest standards in managing what is ultimately athlete money.

To that end, unions have internal processes and controls, sometimes based on these Department of Labor recommendations. One such process, submitting expense reports – familiar to many cube monkeys – is part of this issue; expenses from a 2023 and 2025 visis that Howell and colleagues made to strip clubs were submitted for reimbursement to the NFLPA.

But Strip Club Shouldn’t Be The Only Area Of Concern

Consider not just the ‘where’, but also the ‘what’ and the ‘how’. The line items on the 2025 expense report included “numerous” cash withdrawals Howell made during the visit. Cash – and its cousins, PayPal, Venmo and gift cards – are high-risk areas for expense reimbursements because they mask the ultimate nature of spend.

In addition, Howell reportedly “instructed (another employee present) to file the expense reports ”. That move might have masked total spending for the evening, and also allowed Howell to essentially approve his own expenses if the employee was his subordinate.

Expense policies typically prohibit such activities, and both might indicate a willingness to circumvent internal controls that have broader implications.

Comes Amidst Other Concerning Stories

Exacerbating the concern is another report that Howell was operating as a consultant for Carlyle Group, one of the private equity firms approved to make minority investments in NFL teams. That issue is more optical than logical; reportedly, Howell consulted in Aerospace & Defense and the relationship was disclosed and vetted by internal and external teams before he joined the NFLPA and again when Carlyle was approved for NFL investment.

But there are also concerns around suppressing potential collusion allegations, a sexual discrimination and retaliation lawsuit at a previous employer, and an ongoing FBI investigation into personal enrichment through the NFLPA’s OneTeam investment.

Perhaps relatedly, a source close to the partner WilmerHale hired to investigate Howell said “our work continues”.

How that investigation might proceed

Investigations are part art, part science, and no two are the same. But based on experience and the facts that have been publicly disclosed, it’s reasonable to suggest counsel and the forensic accountants they hire will pursue a few angles.

First will be interviews, including Howell, if he’s cooperative, as well as any employees directly or indirectly involved. That also means whistleblowers, especially since the strip club expenses were “received” by the outside investigator.

Second, the NFLPA’s attorneys might extract emails for Howell or other employees. Those emails will go into a legal data platform like Relativity that is more effective than the Microsoft Outlook search bar for identifying patterns.

Third, they’ll pore through two years of expense reimbursement and vendor spending data. Analytics will help, such as math and pattern analyses to identify red flags, or even – ironically – yellow flags. Those results are married to emails and interviews, and sometimes further testing – such as looking at supporting documentation – is necessary for painting a clearer picture.

Given the concerns around conflicts of interest and circumvention of internal controls, investigators will also look closely at vendors that the NFLPA paid during Howell’s tenure. Did they provide legitimate services? And who else within the organization was aware of conflicts and did enough to communicate them – where reasonable – to broader membership?

At the end of this process, WilmerHale will provide a report. If I’m a player, and not just an executive committee member, I’d demand to see it, understanding some parts may be redacted to protect whistleblowers. Transparency is paramount; not just with the union, but with the government, since there are reportedly labor law implications.

Necessary for restoring faith

As this process unfolds, scrutiny and pressure continue to widen beyond Howell. J.C. Tretter, the President, was reportedly one of two people being considered to replace Howell. He just resigned amidst public criticism on his role in Howell’s hiring and other matters from constituents like Will Compton.

It’s been a tough period for the NFLPA, but with CBA expiration on the horizon, hopefully this investigation and the new executive director will be key first steps in restoring faith from membership.