FTC told rules might’ve been broken

Evidence found that team withheld funds from NFL, fans

WASHINGTON — The U.S. House Oversight Committee sent a letter to the Federal Trade Commission on Tuesday, saying it found evidence the NFL’s Washington Commanders engaged in potentially unlawful financial conduct for more than a decade by withholding ticket revenue from visiting teams and refundable deposits from fans.

In the letter obtained by the Associated Press, the committee outlined through the testimony of former employees and access to emails and documents a pattern of financial impropriety by owner Dan Snyder and team executives.

At one point in 2016 the committee said the team retained up to $5 million from 2,000 season-ticket holders while also concealing shareable revenue from the league.

One former employee testified before Congress, saying the team had two separate financial books: one with underreported ticket revenue that went to the NFL and the full, complete picture. According to testimony, Snyder was aware of the numbers shared with the league while also being privy to the actual data.

The business practice was known as “juice” inside Washington’s front office. And, if correct, it could spell significant trouble for Snyder and the Commanders.

Ticket revenue is shared among all 32 NFL teams, with 40% of it deposited in a visiting team fund. Such money is among the pillars of the league’s revenue-sharing commitment.

A team spokeswoman said there was no new comment and referred to the statement from March 31: “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 league did not immediately respond to a message seeking comment.

The House Oversight Committee said it is sharing documents with the FTC because the commission has the authority to investigate unfair or deceptive business practices

and determine if any laws were broken.

“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,” said the letter signed by committee Chairwoman Carolyn B. Maloney and economic and consumer policy subcommittee Chairman Raja Krishnamoorthi. The letter is addressed to FTC Chair Lina M. Khan but was also sent to the attorneys general of Maryland, Virginia and the District of Columbia, and NFL Commissioner Roger Goodell.

Congress launched an investigation into the team’s workplace misconduct after the league did not release a report detailing the findings of an independent probe into the matter. The committee said the NFL and the team “have taken steps to withhold key documents and information.”

That led investigators to seek testimony and documents in other ways. The committee said its investigation uncovered everything from “pervasive sexual harassment and other workplace misconduct to potential financial misconduct.”

According to testimony, financial misconduct included making it intentionally difficult for season ticket holders to recoup refundable deposit money, counting some of those leftover funds as a different kind of revenue that doesn’t need to be shared with the league, and shifting money from ticket sales for NFL games to other FedEx Field events as a way of hiding that money from the league.