The Washington Commanders and their owner, Dan Snyder, may have engaged in a “troubling pattern of financial conduct” that resulted in millions of dollars being withheld in ticket revenue, a House panel said.
The team has retained nearly $5 million in security deposits for up to 2,000 customers since 2016 and hid money meant to be distributed to the 32 National Football League teams, Jason Friedman, former vice president of sales and customer service for the franchise, alleged in a 20-page report released Tuesday. The allegations may be the final straw for Snyder, as the longtime team owner has been under investigation for other improper conduct.
“We are writing to share evidence of concerning business practices by the Washington Commanders uncovered during the Committee’s ongoing investigation into workplace misconduct at the team,” the letter says. “Evidence obtained by the Committee … indicate senior executives and the team’s owner, Daniel Snyder, may have engaged in a troubling, long-running, and potentially unlawful pattern of financial conduct that victimized thousands of team fans and the National Football League.”
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All teams must give 40% of their net home ticket sales to the league to be distributed to the rest of the teams, according to NFL policy. However, the Commanders kept “two sets of books” for record-keeping: one that was given to the NFL with “underreported” ticket revenue and one that was kept in-house with accurate information, Friedman said.
The scam was accomplished by falsely documenting some ticket sales as coming from a Navy-Notre Dame college football game that was hosted at the Commanders’ stadium or by charging $55 for a ticket that was listed as only costing $44, the former employee told Congress.
“So in this particular case, there’s a set of books that’s submitted to the NFL that doesn’t include the $162,000, but then there’s a set of books that’s kept internally to Mr. Snyder and Mr. Snyder’s — I believe just Mr. Snyder, actually, and the people in his inner circle maybe, that shows what we actually did,” Friedman told the committee.
The team withheld security deposits from customers who were unlikely to request a refund, returning that revenue to the franchise’s accounting system by attributing it to unrelated events, the House committee alleges.
The allegations arise from a separate investigation into more than 650,000 internal emails that some former employees claim showcase racist and misogynistic comments. The investigation initially looked into claims Snyder fostered a hostile work environment but was later expanded to determine whether the franchise engaged in financial impropriety.
Reports first emerged about the investigation into the Commanders’ possible financial misconduct late last month, although the franchise has maintained it has done nothing wrong.
“The team categorically denies any suggestion of financial impropriety of any kind at any time,” the team said in a statement at the time. “We adhere to strict internal processes that are consistent with industry and accounting standards, are audited annually by a globally respected independent auditing firm, and are also subject to regular audits by the NFL. We continue to cooperate fully with the Committee’s work.”
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The House committee is now asking the FTC to look into the fresh allegations, which will determine whether the team violated the law. The Commanders did not respond to the Washington Examiner’s request for comment on the new allegations.
Snyder was fined $10 million by the NFL last year on charges he maintained an unwelcome workplace. However, because this incident affects all teams in the league, it’s likely to be the tipping point that ousts Snyder from the league.
