The Washington Commanders and owner Daniel Snyder “may have engaged in a troubling, long-running, and potentially unlawful pattern of financial conduct” that allegedly involved withholding as much as $5 million in refundable deposits from season ticket holders and also hiding money that was supposed to be shared among NFL owners, according to a letter sent from the House Committee on Oversight and Reform to the Federal Trade Commission on Tuesday.
The 20-page letter, a copy of which was obtained by The Washington Post, freshly details allegations made by Jason Friedman, a former vice president of sales and customer service who worked for the franchise for 24 years. The letter says Friedman told committee members the team maintained “two sets of books,” including one set of financial records used to underreport certain ticket revenue to the NFL. The letter cites documentation that the team’s financial improprieties may have extended to tickets registered in Commissioner Roger Goodell’s name. It references evidence that it says indicates the revenue gained by the team through these practices was known internally as “juice,” and it details allegations that the Commanders improperly attributed such revenue to being derived through a Navy-Notre Dame college football game at FedEx Field or a Kenny Chesney concert, so that it wouldn’t be part of the NFL’s revenue-sharing pool.
The allegations of financial improprieties came to light as the committee reviewed documents and interviewed witnesses in its inquiry of the team’s workplace and the NFL’s handling of the matter. The team has broadly denied such allegations, and the oversight committee has not verified them beyond the evidence presented in the letter.
“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,” the committee’s letter says. “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.”
The Commanders did not respond immediately to a request for response to news of Tuesday’s letter. Earlier this month, the team said it had committed no financial improprieties.
“The team categorically denies any suggestion of financial impropriety of any kind at any time,” the Commanders said in a statement then. “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 letter was signed by Rep. Carolyn B. Maloney (D-N.Y.), the committee’s chairwoman, and Rep. Raja Krishnamoorthi (D-Ill.), the chairman of the Subcommittee on Economic and Consumer Policy, and addressed to FTC chair Lina M. Khan. It was copied to Republican leaders of the committee, Goodell and attorneys general Jason S. Miyares (R) of Virginia, Brian E. Frosh (D) of Maryland and Karl A. Racine (D) of D.C.
“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, including emails, documents, and statements from former employees, 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 (NFL).”
The NFL did not immediately respond to a request to comment about the letter.
A spokesperson for the oversight committee’s Republicans said the 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.” The Republicans will provide 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,” the spokesperson said.
Eight days ago, the Commanders said in a statement there “has been absolutely no withholding of ticket revenue at any time by the Commanders,” adding that any person “who offered testimony suggesting a withholding of revenue has committed perjury, plain and simple.”
That led attorney Lisa Banks to say that the team had “defamed” Friedman, one of her clients. Banks and fellow attorney Debra Katz called Tuesday’s letter “damning” and said in a statement: “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.”
The committee said in the letter that it interviewed Friedman on March 14. Friedman “provided a detailed account of the Commanders’ toxic work environment, culture of impunity, and lack of accountability by Commanders executives” and “also described a pattern of deeply concerning business practices that were directed by senior leadership, including Mr. Snyder,” the letter says.
Friedman “provided the Committee with information and documents indicating that the Commanders routinely withheld security deposits that should have been returned to customers who had purchased multiyear season tickets for specific seats, referred to as seat leases,” according to the letter. Friedman told the committee that “team executives directed employees to establish roadblocks to prevent customers from obtaining the security deposits they were due — effectively allowing the team to retain that money,” the letter says.
Commanders deny withholding revenue. Lawyer claims evidence presented.
According to the letter, Friedman told the committee that the team would not accept refund requests by email and failed to inform all leaseholders of a change made after 2000 no longer requiring security deposits for new club seat lease agreements. Friedman told the committee that some customers forgot about the deposits or, in the case of corporate accounts, might have taken over the account without knowing to ask for the refund.
“So basically, the team is holding on to these security deposits, many of which should be back in the hands of the customers or former customers,” Friedman told the committee, according to Tuesday’s letter.
The 20-page letter, a copy of which was obtained by The Washington Post, freshly details allegations made by Jason Friedman, a former vice president of sales and customer service who worked for the franchise for 24 years. The letter says Friedman told committee members the team maintained “two sets of books,” including one set of financial records used to underreport certain ticket revenue to the NFL. The letter cites documentation that the team’s financial improprieties may have extended to tickets registered in Commissioner Roger Goodell’s name. It references evidence that it says indicates the revenue gained by the team through these practices was known internally as “juice,” and it details allegations that the Commanders improperly attributed such revenue to being derived through a Navy-Notre Dame college football game at FedEx Field or a Kenny Chesney concert, so that it wouldn’t be part of the NFL’s revenue-sharing pool.
The allegations of financial improprieties came to light as the committee reviewed documents and interviewed witnesses in its inquiry of the team’s workplace and the NFL’s handling of the matter. The team has broadly denied such allegations, and the oversight committee has not verified them beyond the evidence presented in the letter.
“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,” the committee’s letter says. “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.”
The Commanders did not respond immediately to a request for response to news of Tuesday’s letter. Earlier this month, the team said it had committed no financial improprieties.
“The team categorically denies any suggestion of financial impropriety of any kind at any time,” the Commanders said in a statement then. “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 letter was signed by Rep. Carolyn B. Maloney (D-N.Y.), the committee’s chairwoman, and Rep. Raja Krishnamoorthi (D-Ill.), the chairman of the Subcommittee on Economic and Consumer Policy, and addressed to FTC chair Lina M. Khan. It was copied to Republican leaders of the committee, Goodell and attorneys general Jason S. Miyares (R) of Virginia, Brian E. Frosh (D) of Maryland and Karl A. Racine (D) of D.C.
“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, including emails, documents, and statements from former employees, 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 (NFL).”
The NFL did not immediately respond to a request to comment about the letter.
A spokesperson for the oversight committee’s Republicans said the 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.” The Republicans will provide 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,” the spokesperson said.
Eight days ago, the Commanders said in a statement there “has been absolutely no withholding of ticket revenue at any time by the Commanders,” adding that any person “who offered testimony suggesting a withholding of revenue has committed perjury, plain and simple.”
That led attorney Lisa Banks to say that the team had “defamed” Friedman, one of her clients. Banks and fellow attorney Debra Katz called Tuesday’s letter “damning” and said in a statement: “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.”
The committee said in the letter that it interviewed Friedman on March 14. Friedman “provided a detailed account of the Commanders’ toxic work environment, culture of impunity, and lack of accountability by Commanders executives” and “also described a pattern of deeply concerning business practices that were directed by senior leadership, including Mr. Snyder,” the letter says.
Friedman “provided the Committee with information and documents indicating that the Commanders routinely withheld security deposits that should have been returned to customers who had purchased multiyear season tickets for specific seats, referred to as seat leases,” according to the letter. Friedman told the committee that “team executives directed employees to establish roadblocks to prevent customers from obtaining the security deposits they were due — effectively allowing the team to retain that money,” the letter says.
Commanders deny withholding revenue. Lawyer claims evidence presented.
According to the letter, Friedman told the committee that the team would not accept refund requests by email and failed to inform all leaseholders of a change made after 2000 no longer requiring security deposits for new club seat lease agreements. Friedman told the committee that some customers forgot about the deposits or, in the case of corporate accounts, might have taken over the account without knowing to ask for the refund.
“So basically, the team is holding on to these security deposits, many of which should be back in the hands of the customers or former customers,” Friedman told the committee, according to Tuesday’s letter.