Commanders settle consumer protection lawsuit with for $625,000

The Washington Commanders have settled a consumer protection lawsuit in the District of Columbia over allegations that the NFL team improperly withheld tickets from fans. However, billionaire owner Dan Snyder and his team are still facing other civil lawsuits in D.C. over what the attorney general’s office called conspiracy to mislead residents about the team’s toxic work culture.

Attorney General Brian L. Schwalb announced Monday the agreement that will return $200,000 to fans and pay $425,000 to the district to resolve allegations related to the deposits. Pastor Karl A. Racine filed the consumer protection lawsuit late last year before leaving office, and Schwalb picked up the case.

The district’s investigation found that the team deceptively kept fan deposits for years after ticket contracts expired, used that money inappropriately, and in some cases made it difficult to recover the money.

“Instead of being transparent and forthright in their ticket-selling practices, the commanders unlawfully took advantage of their fan base by holding bond deposits instead of returning them,” Schwalb said in a statement. “Under this settlement agreement, our office will closely monitor the Commanders to ensure that all necessary steps are taken to provide fans with the refunds they are entitled to.”

The district still has a civil suit against the Commanders, Snyder, the NFL and Commissioner Roger Goodell for outstanding sexual harassment and hostile workplace claims. A league investigation into the team yielded a $10 million fine but no written report, sparking outrage and a congressional review.

At least one fan is looking forward to Snyder’s departure as Commanders owner

The commanders previously settled with Maryland over season ticket holder deposits by agreeing to return money and pay the state $250,000.

Under the terms of the latest settlement with the district, the commanders must search public records for contact information of affected fans and attempt to notify them, post the refund process on their website, and regularly report to the Attorney General’s office on their progress . .

“We have not accepted bail or seat licenses in over a decade and have been actively working since 2014 to refund any remaining bail,” a Commanders spokesperson said in an email to The Associated Press. “We are pleased to have reached agreement with the DC Attorney General on this and will work with the office to fulfill our obligations to our fans.”

The series of lawsuits in the Washington area were among the latest twists in the team’s tumultuous run under Snyder, who along with wife Tanya hired a firm in November to investigate the sale of part or all of the team. That came during multiple investigations and two weeks after Indianapolis Colts owner Jim Irsay said it was “deserved” to remove Snyder.

Two groups, one led by Josh Harris and Mitchell Rales, including Magic Johnson and another by Canadian billionaire Steve Apostolopoulos, have submitted fully funded bids to buy the Commanders. It’s unclear how quickly a sale could happen; Snyder must first choose his favorite bidder and send it to the league for approval.

Last fall, with multiple investigations underway into the team’s work culture, finances, and Snyder himself, he and his wife, Tanya, hired a firm to “consider possible transactions.” Tanya continues to represent the team at league events amid sexual harassment and business malpractice investigations against the team and her husband.

The district’s investigation revealed that the team had been deceptively keeping fan deposits for years

Snyder and his attorneys have demanded that NFL owners and the league indemnify him for future legal liability and costs if he sells the team, one person told the AP. Two owners said they were angry about Snyder’s claim for damages, but told the AP they want to let the sale process go before taking any action.

The 58-year-old billionaire has faced calls from fans for years to sell the struggling team, but pressure has mounted since 2020 amid allegations of sexual harassment, financial impropriety and obstruction against the team and Snyder himself. Although the commanders fired many of the individuals accused of sexual harassment and paid a $10 million fine to the NFL, Snyder has defiantly denied the allegations against him in light of several investigations, including a congressional investigation.

Following The Washington Post’s recent report that Snyder is seeking redress if he sells the team, ESPN reported in March that FBI and IRS agents are investigating allegations that Snyder took out a $55 million loan without the knowledge of his then-minority partners.

After years of litigation, Snyder bought out minority owners Dwight Schar, a housing manager, Black Diamond Capital CEO Bob Rothman, and FedEx founder Fred Smith in the spring of 2021. The trio had previously filed a court order in hopes of being allowed to sell their 40.5 percent stake in the team, which Snyder eventually bought after the NFL approved a debt-limit waiver that allowed him to take out a $450 million loan. at Bank of America.

A federal grand jury has since issued subpoenas related to team finances, according to ESPN.

Then-DC Attorney General Karl Racine (left) announced the lawsuit in November

The former minority partners reportedly demanded an NFL investigation into the alleged $55 million loan during a confidential arbitration hearing, but at least one source with knowledge of the proceedings told ESPN that Schar, Smith and Rothman believed league commissioner Roger Goodell and general counsel Jeffrey Pash sided with the party. with Snyder.

If Snyder took out the $55 million loan without informing his now-former minority partners, it would have violated the team’s shareholder agreement, according to documents obtained by the AP.

Bank of America officials repeatedly asked for evidence that the board had approved the loan, but they closed the deal without receiving any such confirmation. Documents obtained by the AP show a team lawyer acknowledging in a letter that the board’s approval was never granted.

A Bank of America spokesman declined to comment to DailyMail.com.

Less than a week after Schar, Rothman and Smith pressured NFL arbitrators to investigate the loan, the NFL decided to end the arbitration process, documents show.

Frustrated, Schar, Rothman and Smith hesitantly agreed to allow Goodell to mediate the dispute, according to ESPN.

The NFL did not investigate the loan, and Snyder was never disciplined for the financial misconduct claims.

The Snijders investigate the possibility of selling the team, much to the delight of many fans

In a statement, NFL spokesman Brian McCarthy said: “The parties had a series of disputes, which were certified for arbitration to the commissioner as required by league rules. The commissioner appointed a highly respected lawyer as arbitrator and none of the parties objected to that appointment.’

“After several months, the parties were asked if they were interested in participating in a confidential mediation with the Commissioner, which they agreed to do,” McCarthy continued.

The mediation lasted two days and the parties then reached an agreement whereby the three limited partners sold all of their interests in the team to Mr. Snyder for an agreed price and other terms. Everyone was represented by highly sophisticated legal and financial advisors. The agreement included a full waiver of all claims that were or could have been made by any party to the arbitration proceedings.”

The commander’s attorney, John Brownlee, did not respond to ESPN questions about the alleged $55 million loan, but did say the team is cooperating with the DOJ’s request for financial records in the lawsuit that was settled Monday.