Report: Commanders Accused of 'Unlawful' Financial Conduct in Letter from Congress

The House Committee on Oversight and Reform has accused the Washington Commanders of potentially unlawful financial conduct.

The committee made the accusation in a 20-page letter sent to the Federal Trade Commission on Tuesday.

The allegations were made in a letter by a former vice president of sales and customer service.

"The letter says Friedman told committee members the team maintained 'two sets of books,' including one set of financial records used to underreport certain ticket revenue to the NFL. The letter cites documentation that the team’s financial improprieties may have extended to tickets registered in Commissioner Roger Goodell’s name. It references evidence that it says indicates the revenue gained by the team through these practices was known internally as 'juice,' and it details allegations that the Commanders improperly attributed such revenue to being derived through a Navy-Notre Dame college football game at FedEx Field or a Kenny Chesney concert, so that it wouldn’t be part of the NFL’s revenue-sharing pool."

Other allegations made against the Commanders and owner Dan Snyder in the letter include holding as much as $5 million in refunds from season ticket holders and hiding money that was supposed to be shared among owners.

The congressional committee looking into the NFL's handling of sexual harassment allegations in the Commanders workplace expanded its investigation amid allegations of financial improprieties under the ownership of the team.

The Federal Trade Commission was told in the letter that it was providing the information and documents uncovered by the Committee for your review to determine if the Commanders violated any provision of law.

According to the letter, Friedman provided the Committee with information and documents indicating that the Commanders routinely withheld security deposits that should have been returned to customers who had purchased multiyear season tickets for specific seats.

Friedman told the committee that Washington employees were directed by team executives to establish roadblock to prevent customers from obtaining security deposits, which allowed the team to retain money.

The committee said the Commanders had unreturned security deposits for around 2,000 accounts, amounting to around $5 million.

In his testimony to the committee, Friedman said that Washington's current chief marketing officer and former chief operating officer instructed him to identify security deposits that are on inactive accounts.

The practice would allow the team to avoid making contributions to the local revenue pool that teams are required to share with the league.

The Commanders denied the allegations in a statement last week.

The team said that the revenues are subject to independent audits.

The Commanders were fined $10 million in July after the league investigated allegations of a toxic workplace. The team's day-to-day operations were given to his wife.

The commissioner told reporters last month that he expects the owner to retain control of the daily operations, but he will discuss that with the owner at some point.

The Washington franchise was purchased in 1999 by the man who had previously owned it.