The Washington Commanders and 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," according to a letter sent from the House Committee on Oversight and Reform to the Federal Trade Commission.
For over a decade, according to the letter, Commanders executives "may have withheld millions of dollars in refundable security deposits owed to customers upon the expiration of their multi-year seat leases and may have taken steps to prevent customers from collecting these deposits."
These details are all included in the latest Washington Post report chronicling the Oversight Committee's ongoing investigation of Snyder and the Commanders organization. Tuesday's update is predicated on a 20-page letter obtained by The Post detailing alleged financial misconduct by the organization to the FTC.
At the center of the letter is testimony from Jason Friedman, a former VP of sales and customer service for the Commanders from 1996 to 2020. Friedman's testimony led to a report earlier this month alleging that the congressional committee had "kept ticket revenue that is supposed to be shared with other NFL teams." The Commanders denied the allegation, saying that "anyone who offered testimony suggesting a withholding of revenue has committed perjury, plain and simple."
Friedman's attorney, Lisa Banks, who along with Debra Katz represents over 40 former Commanders employees, accused the Commanders of defaming her client in its denial. The Commanders countered by saying they made no reference of Mr. Friedman — or anyone else — by name in their denial and "gladly" welcomed Friedman to bring a defamation lawsuit against them if he believed he'd been defamed.
Now, according to The Post, Friedman's testimony is being used by the Oversight Committee to show the FTC that the team allegedly:
** Maintained "two sets of books," including one set of financial records used to underreport certain ticket revenue to the NFL
** Used the term "juice" internally to describe the practice of "identifying revenue to be intentionally misallocated in its accounting system and applied to unrelated events"
** Improperly attributed such revenue to being derived through a Navy-Notre Dame game or a Kenny Chesney concert at FedEx Field, so that revenue would not be included in the NFL's revenue-sharing pool
"Given the Federal Trade Commission’s (FTC) authority to investigate unfair or deceptive business practices, we are providing the information and documents uncovered by the Committee for your review, to determine if the Commanders violated any provision of law enforced by FTC and whether further action is warranted," a portion of the committee’s letter reads. "We request that you take any other action you deem necessary to ensure that all funds are returned to their rightful owners and that those responsible are held accountable for their conduct."
According to a spreadsheet included in the letter, one customer name that corresponds with two season tickets appears to have been registered in the name of NFL Commissioner Roger Goodell, with the address for the account listed as the NFL's corporate address in New York. The spreadsheet notes an unreturned deposit of approximately $1,000 for that account. The Committee could not determine when that security deposit was paid or whether it has since been returned.
The Commanders did not respond to The Post's request for a response to the news of Tuesday's letter. The team has previously denied committing financial improprieties, saying in a statement: "The team categorically denies any suggestion of financial impropriety of any kind at any 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."
The aforementioned attorneys Banks and Katz issued the following statement in response to the congressional committee's letter: "The Committee's letter to the FTC, the state attorneys general, and the NFL about the Washington Commanders' fraudulent financial practices is damning.
"It's clear that the team's misconduct goes well beyond the sexual harassment and abuse of employees already documented and has also impacted the bottom line of the NFL, other NFL owners, and the team's fans. We are proud of our many clients who have come forward at great personal risk to reveal the truth and bring us closer to total transparency about the full extent of the dysfunction at the Washington Commanders."
A Republican spokesman issued the following statement in response to the Democrat-led letter: "The primary mission of the Oversight and Reform Committee is to root out waste, fraud, abuse, and mismanagement in the federal government. Democrats continue to ignore oversight of the Biden Administration's failed policies that have led to the highest level of inflation in over 40 years, skyrocketing energy costs, and a worsening border crisis. Democrats instead are using all of their resources to publicly attack a private company with no connection to the federal government.
"Even worse, Democrats are attacking a private company using the claims of a disgruntled ex-employee who had limited access to the team's finances, was fired for violating team policies, and has his own history of creating a toxic workplace environment. As recently as January 2022, this employee was begging to get his job back with the team. Committee Republicans will be providing the FTC with additional context to ensure that they have the full story when evaluating the Democrats' latest letter and not just one-sided, cherry-picked information."
When the committee decided to expand its investigation of the Commanders to pursue allegations of financial improprieties, a GOP spokesperson responded in part by calling it a "waste of Congress' time."
The House Oversight Committee launched its investigation into Snyder and the Commanders in October 2021. It was spearheaded by a team of Democrats who were dismayed by the NFL's lack of transparency in its handling of the Beth Wilkinson investigation.
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