(Washington) The House Oversight Committee sent a letter to the Federal Trade Commission on Tuesday saying it found evidence that the Washington Commanders engaged in potentially illegal financial conduct for more than a decade.
Posted yesterday at 5:11 p.m.
This would have been done by withholding ticket revenue from visiting teams and refundable deposits from fans.
In the letter obtained by The Associated Press, the committee described, through testimony from former employees and access to emails and documents, a pattern of financial irregularities by owner Dan Snyder and team executives. .
At one point in 2016, the committee said the team kept up to five million from 2,000 season ticket holders, while hiding shareable revenue from the league.
A former employee testified before Congress saying the team had two separate books: one with underreported ticket revenue that went to the NFL, one showing the full picture.
Reportedly, Snyder was aware of the numbers shared with the league, while knowing the actual data.
Ticket revenue is shared among the 32 NFL teams, with 40% going to a visiting team fund. This money is part of the league’s revenue sharing pillars.
A team spokeswoman said there was no further comment and referred to the March 31 statement: “The team categorically denies any suggestion of financial impropriety of any kind at any time. »
“We adhere to strict internal processes that comply with industry standards and accounting standards, we are audited annually by a globally respected independent firm, and we are also subject to regular audits by the NFL. We continue to cooperate fully with the committee. »
Via a spokesperson, the NFL said it hired Mary Jo White to “investigate the most serious issues raised by the committee.” White headed the Securities and Exchange Commission from 2013 to 2017.
The House Oversight Committee said it is sharing documents with the FTC because the commission has the authority to investigate unfair or deceptive marketing practices and determine whether any laws have been broken.
“We ask that you take any further 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,” reads the letter signed by committee chair Carolyn B. Maloney as well as Raja Krishnamoorthi, who leads the subcommittee on economics and consumer policy.
The letter is addressed to FTC Chairman Lina M. Khan, but was also sent to the attorneys general of Maryland, Virginia and the District of Columbia, as well as NFL Commissioner Roger Goodell.
Congress launched an investigation into the team’s workplace misconduct after the league failed to release a report detailing the findings of an independent investigation into the matter. The committee said the NFL and the team “took steps to withhold key documents and information.”
This led investigators to seek testimony and documents through other means. The committee said the investigation found, among other things, “pervasive sexual harassment and other misconduct in the workplace (and) potential financial misconduct.”
According to testimonies, the financial misconduct consisted of intentionally making it difficult for subscription holders to recover money from refundable deposits, counting some of those remaining funds as a different type of income (which does not require be shared with the league) and redirect money from NFL game ticket sales to other events at FedEx Field, in order to hide that money from the league.
In the letter, the committee shared spreadsheet data showing evidence of deposits that were not returned. Citing emails and testimony from longtime vice president of sales and customer service Jason Friedman, ticket sales from Washington games have shifted to a 2013 Kenny Chesney concert and a football game. Navy-Notre Dame University in 2014.
When news surfaced in early April about the team withholding ticket revenue, the team released a statement denying the report and added, “Anyone who has offered testimony suggesting withholding revenue has committed perjury, plain and simple. »
Attorney Lisa Banks, who represents Friedman, said the team defamed her client, who testified honestly “with evidence.”
After the committee sent the letter to the FTC, Banks and attorney Debra Katz, who represent more than 40 former employees, called the letter “damning.”
“It is clear that the team’s misconduct goes well beyond the sexual harassment and abuse of employees already documented and has also impacted the finances of the NFL, other NFL owners and fans. of the team,” they said in a statement.
“We are proud of our many customers who have come forward at great personal risk to reveal the truth and bring us closer to full transparency about the extent of the dysfunction at the Washington Commanders. »