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AG Brian Schwalb announced on Monday, April 10 that Pro-Football Inc., the corporation that owns the Commanders, will return more than $200,000 to DC residents and will pay $425,000 to the District to resolve allegations that the team didn’t act in good faith with the fans.
Specifically, officials say that “the team systematically failed to return ticket holders’ deposits and intentionally created barriers for fans to get refunds in violation of District law.”
In April last year, the Attorney General’s Office launched an investigation into the Commanders’ handling of security deposit following a referral from federal officials.
The investigation determined that the then-Redskins, now-Commanders, engaged in a business practice of offering multi-year contracts for premium game tickets for many years, which fans had to pay a “substantial security deposit” that was supposed to be returned within 30 days of the contract’s expiration.
However, in reality, the team dubiously and deceptively kept many of the deposits for years, improperly using the cash for their own purposes, even after being alerted in 2009 by an employee that the practices were in violation of the Commanders’ contract with the fans.
“The team, in addition to the requirements stated in the initial contracts, unfairly and deceptively imposed further cumbersome requirements, which complicated the process for fans to reclaim their deposits,” according to the AG. “The team persisted in enforcing these extra obligations on consumers.”
As of March last year, the Commanders still held more than $200,000 in unreturned security deposits that were paid by DC residents.
The settlement comes amid much-maligned Commanders’ owner Dan Snyder continues to seek a possible record-setting sale of the club, which has been a source of consternation for fans of the team for years.
With the lawsuit behind them, it is expected that the sale of the Commanders could be expedited as Snyder seeks upwards of $6 billion for the squad.
However, there is a separate lawsuit from the AG targeted the team, Snyder, and NFL Commissioner Roger Goodell “for allegedly colluding to deceive District residents about an investigation into, and commitment to transparently address, toxic workplace culture and allegations of sexual assault.”
“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.
“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.”
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