Commander's Dan Snyder Fined $60 Million for Sexual Harassment and Financial Irregularities

Washington Commanders owner Dan Snyder fined $60 million for misconduct.

In a groundbreaking announcement on Thursday, the NFL revealed that Washington Commanders owner Dan Snyder has been found guilty of sexual harassment towards a team employee, as well as overseeing the deliberate withholding of millions of dollars in revenue from other clubs. As a result, Snyder has agreed to pay a staggering $60 million fine, representing 1% of the record-breaking $6.05 billion sale of the Commanders to Josh Harris. This fine is a significant increase from the $800 million that Snyder initially bought the team, then known as the Redskins, for.

The investigation into Snyder's conduct was led by former Securities and Exchange Commission chair Mary Jo White and her law firm, Debevoise & Plimpton. The NFL had promised to make the findings of the probe public, and a comprehensive 23-page report was released just moments after the sale of the Commanders was unanimously approved by the league's owners.

The report revealed that Washington had withheld $11 million in revenue that should have been shared with other teams, and there is suspicion that the actual amount withheld may be much higher. However, due to a lack of cooperation from Snyder and the team, the investigation was unable to reach a definitive conclusion regarding the potential withholding of tens of millions of additional dollars. The report also confirmed the sexual harassment allegations made by former team employee Tiffani Johnston, which she had previously testified about in front of a House committee. According to the report, Snyder placed his hand on Johnston's thigh during a team dinner and forcefully pushed her towards his car as they left the restaurant.

NFL Commissioner Roger Goodell expressed his disapproval of Snyder's actions during a news conference, stating that they were inappropriate and did not align with the league's values. Snyder has denied Johnston's allegations and reiterated his denial during his interview with White's investigators. However, the report deemed Johnston to be highly credible, with her account being supported by witnesses and other evidence. The investigation also substantiated claims of financial improprieties made by another former employee, Jason Friedman.

The report further revealed that a former team executive had inappropriately obtained a photograph of Johnston from a calendar shoot featuring the team's cheerleaders. The photo depicted Johnston wearing lingerie, and it had not been edited to fully cover any inadvertent exposures. While there was insufficient evidence to implicate Snyder directly in this incident, the report did not absolve him of potential knowledge regarding financial misdeeds. Witnesses informed investigators that Snyder had consistently pressured team employees to improve the team's financial performance, emphasizing the significance of every dollar. Documents detailing the team's revenue manipulation were shared with Snyder on at least one occasion.

The findings of the investigation have significant consequences for Snyder. In addition to the $60 million fine, he has been compelled to sell the team, which he previously stated he would never do. The extensive public record of his personal wrongdoing and the misconduct that occurred under his leadership will forever tarnish his reputation. Attorneys representing Johnston and Friedman expressed their satisfaction with the outcome, commending their clients' courage in coming forward and holding Snyder accountable.

The report also shed light on Washington's efforts to circumvent NFL revenue-sharing rules. The team would classify team-related revenue as proceeds from special events, such as concerts or college football games, to avoid sharing them with other teams. The investigation confirmed allegations made by Friedman that the Commanders maintained a second set of books to conceal revenue. Millions of dollars in revenue from ticket sales and sponsor bartering, undervalued at falsely reduced prices, were moved into accounts that shielded the money from the league. Forensic accountants identified an additional $44 million in parking, license, and other revenues that were transferred from accounts holding league revenue into special events accounts.

The report highlighted that Washington's revenue manipulation became more aggressive after a decline in ticket sales starting in 2008. Despite boasting a decades-long waiting list for season tickets, demand plummeted under Snyder's ownership. Snyder had a reputation for maximizing profits by implementing aggressive pricing strategies for parking and concessions, and even suing fans for canceling their season tickets. The District of Columbia Attorney General's office reached a settlement with Snyder regarding the team's failure to refund season-ticket security deposits.

White's firm criticized Snyder and the team for their lack of cooperation during the investigation. The Commanders failed to produce requested documents, denied investigators access to the team's external auditors, and employed other tactics to hinder and delay the investigation. The report specifically called out Snyder for engaging in months of scheduling, canceling, and rescheduling of his interview, demonstrating his individual failure to cooperate.

In response to the findings, Representative Jamie Raskin of Maryland, the ranking Democrat on the House Oversight Committee, introduced two bills aimed at protecting American workers from the abuses committed by Snyder and the Commanders. The report has undoubtedly exposed the extent of Snyder's misconduct and financial improprieties, leaving a lasting impact on the future of the Washington Commanders and the NFL as a whole.

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