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Lisa Banks: Congressional letter to FTC regarding Washington Commanders alleged fraud “is damning”

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As lawmakers and the Justice Department now circle both the NFL and the Washington Commanders, Shalise Manza Young explains how Roger Goodell's initial lenience towards Daniel Snyder could haunt the league.

The Washington Commanders have said nothing about the letter from the U.S. House Committee on Oversight & Reform to the Federal Trade Commission regarding allegations of serious financial impropriety. The NFL has said nothing, either. The lawyer who represents former Washington Commanders employee Jason Friedman has said plenty.

“The Committee’s letter to the FTC . . . about the Washington Commanders’ fraudulent financial practices is damning,” Banks said in a statement. “It’s clear that the team’s misconduct goes well beyond the sexual harassment and abuse of employees already documents and has also impacted the bottom line of the NFL, other NFL owners, and the team’s fans. We are proud of our many clients who have come forward at great personal risk to reveal the truth and bring us closer to total transparency about the full extent of the dysfunction at the Washington Commanders.”

The Committee’s letter includes allegations from Friedman regarding the retention of security deposits owned by certain season-ticket holders and the shifting of revenue that was generated by ticket sales at Commanders games to non-NFL events at FedEx Field.

Last week, the Commanders insisted that there has been no withholding of ticket revenue, and that "[a]nyone who offered testimony suggesting a withholding of revenue has committed perjury, plain and simple.”

Banks responded by accusing the team of defaming Friedman. The Commanders, pointing out that neither Friedman nor anyone else was mentioned in the statement regarding alleged perjury, welcomed a potential defamation suit from Friedman.

The Commanders may be getting something a lot more dangerous than a defamation lawsuit. If the allegations can be substantiated, and if they spark aggressive investigation and/or prosecution, it’s quite possibly game over for team owner Daniel Snyder.