Commanders to pay $425,000 fine, refund deposits in settlement with D.C. AG
By
Nicki Jhabvala and
Mark Maske
Updated April 10, 2023 at 12:07 p.m. EDT|Published April 10, 2023 at 11:52 a.m. EDT
The Washington Commanders must pay a $425,000 fine to the District of Columbia and refund the more than $200,000 in deposits to D.C. ticket holders as part of a settlement reached with the office of D.C. Attorney General Brian Schwalb (D) that was announced Monday. Under the settlement, the team must contact impacted fans and disclose the refund process on their website and provide Schwalb’s office with regular reports of its progress in refunding the deposits.
“Rather than being transparent and upfront in their ticket sale practices, the Commanders unlawfully took advantage of their fan base, holding on to security deposits instead of returning them,” Schwalb said in a news release. “Under this settlement agreement, our office will maintain strict oversight over the Commanders to ensure all necessary steps are taken to reimburse fans for the refunds they are entitled to. Our office takes seriously the obligation to enforce DC consumer protection laws by holding accountable anyone that tries to exploit District consumers.”
The Commanders did not admit to the allegations, under the terms of the settlement.
The
lawsuit was filed in the civil division of the D.C. Superior Court last November by outgoing D.C. Attorney General Karl A. Racine (D), who alleged the team implemented “an illegal scheme to cheat District ticket holders out of their deposits for season tickets and use the money for its own purposes.”
It was the second of two lawsuits filed by Racine’s office in a span of eight days. The first was a consumer protection suit that accused the Commanders, team owner Daniel Snyder, the NFL and Commissioner Roger Goodell of colluding to deceive and mislead customers about an investigation of the team’s workplace in order maintain its fan base in pursuit of revenue.
That case is ongoing.
Allegations about the team’s security-deposit practices were made during an investigation into the team’s workplace by the House Committee on Oversight and Reform. Former Commanders sales executive Jason Friedman told the committee that Commanders executives instructed him to withhold security deposits from customers when their lease terms ended and to create barriers to discourage customers from requesting a refund of their deposit. Friedman alleged that the Commanders then converted the non-refunded deposits into revenue for the team.
The Committee sent a letter to multiple entities, including the attorneys general of Maryland, Virginia and D.C. as well as the Federal Trade Commission, outlining the allegations. The team has denied committing any financial improprieties.
Maryland Attorney General Brian E. Frosch (D)
announced in November that the team reached a settlement that called for a $250,000 fine and for the remaining refundable deposits to be returned to ticket holders.
“For many years, the Commanders kept money that was not theirs,” Frosh said in a statement at the time. “It belongs to their customers. Today’s settlement will require the team to return the monies owed to consumers. The Commanders will pay a penalty, and they will be enjoined from engaging in similar practices in the future.”
The Commanders did not admit to the allegations as part of the Maryland settlement.