Commanders reach $625K settlement with D.C. AG over failure to return season ticket deposits
As of Monday, the Washington Commanders have crossed off one more item on their "legal-issues-to-settle-before-selling-the-team" list.
Washington, D.C., Attorney General Brian Schwalb announced that his office reached a settlement with the Commanders over their failure to refund security deposits to season ticket holders. The Commanders will return $200,000 in deposits to affected season ticket holders who live in D.C., and pay a $425,000 fine to the city.
Inbox: @DCAttorneyGen says that he’s secured a settlement with the @Commanders over unreturned deposits for season tickets fans tried to purchase. The team will pay $200,000 to residents who put deposits down on tickets and $425,000 to the city. pic.twitter.com/frdevWbH2O
— Martin Austermuhle (@maustermuhle) April 10, 2023
The Commanders were accused of systematically withholding security deposit refunds from season ticket holders over a period of multiple years. After an in-depth report from Congress detailed the security deposit scheme, the attorneys general of Virginia, Maryland, and D.C. launched separate investigations into the team's financial practices. The Maryland AG's office settled with the Commanders in November 2022. The team was required to return all withheld deposits to season ticket holders in Maryland and pay a $250,000 fine to the state.
The Commanders released a statement about their settlement with the D.C. AG, via Ben Standig.
"We have not accepted security deposits or seat licenses in more than a decade and have been actively working to return any remaining deposits since 2014. We are pleased to have reached an agreement on the matter with the DC Attorney General and will work with the office to fulfill our obligations to our fans."
Other outstanding legal issues
While it's not clear the total number of outstanding legal issues the Commanders are still dealing with, there are a few high profile ones that have not been resolved.
The Virginia AG is still investigating the Commanders over the security deposit scheme. Even though the D.C. case is wrapped, that may not have any effect on Virginia. Their investigation was announced in late April 2022.
The D.C. AG actually has a second Commanders investigation that's still in process. Announced on Nov. 10, 2022, (one week before the season ticket deposit investigation), the D.C. AG is investigating the Commanders, owner Dan Snyder, the NFL and commissioner Roger Goodell for "colluding" to deceive fans by spending years covering up the Commanders' abhorrent workplace culture that consistently failed to hold executives accountable for harassing and retaliating against female employees.
Snyder is also reportedly being investigated by federal prosecutors for using the team like his "personal piggy bank." Several former Commanders minority owners allege he took out at least one massive loan without telling them, and Goodell and the NFL refused to investigate.
As for the final outstanding legal issue, we already know it won't be affected by the sale. For the second time in recent memory, Goodell is having the Commanders' workplace culture investigated. Former U.S. Attorney Mary Jo White is leading that investigation, and unlike the first time there will be a written report. Goodell announced last month that a possible Commanders sale would not affect the investigation or the release of that report.
