Washington Commanders Settle Virginia Lawsuit Alleging Team Withheld Fans’ Deposits

WASHINGTON -- The Washington Commanders last week settled their lawsuit by Virginia’s attorney general for $1.3 million after being accused of improperly withholding deposits by season ticket holders.

The Virginia settlement, which is the largest so far, follows similar settlements with the attorneys general for Maryland and the District of Columbia.

All of them put much of the blame on former football team owner Dan Snyder. He is required under the settlement agreement to pay the $1.3 million from his own funds.

“I am pleased that we were able to reach a fair and reasonable agreement with the Washington Commanders that requires restitution of unlawfully retained security deposits to consumers,” Virginia Attorney General Jason Miyares said in a statement. “Our investigation found that the Commanders’ prior ownership unlawfully retained security deposits for years after they should have been returned to consumers.”

Miyares sued after an internal investigation concluded the Commanders agreed to long-term contracts with season ticket holders that required them to pay refundable security deposits. 

Despite telling fans the security deposits would be returned after the football seasons, the team’s management kept the money, telling ticket holders it was needed to cover expenses related to their tickets.

The truth appeared to be that the team never intended to return the money, according to the Virginia lawsuit.

As a result of the settlement, the Commanders have returned more than $600,000 in deposits so far to about 475 Virginia season ticket holders. 

The settlement agreement also requires them to pay $600,000 in civil penalties and $100,000 related to the investigation, Miyares’s office said.

The team appeared to be distancing itself this week from Snyder and his former managers.

“We are pleased that this settlement has been reached resolving issues that occurred under prior ownership,” a statement from the team said.

Snyder was compelled to sell his ownership interest in the Commanders for $6.05 billion after a vote last July by National Football League owners. They ratified the sale to a group led by private equity investor Josh Harris.

An NFL investigation alleged Snyder withheld revenue the team was contractually obligated to share with other football franchises. It also concluded Snyder sexually harassed a former employee.

The lawsuits by the attorneys general of Virginia, Maryland and the District of Columbia were partly based on a congressional investigation of questionable financial dealings by the team.

The House Oversight and Accountability Committee reported that it found evidence of years of deceptive business practices by the team.

The Maryland settlement in 2022 required the Commanders to refund security deposits not yet returned to consumers and pay a $250,000 civil fine.

The District of Columbia settlement in April 2023 said the Commanders must pay a $425,000 fine to the city and refund more than $200,000 in deposits to D.C. ticket holders.

For more information, contact The Legal Forum (www.legal-forum.net) at email: [email protected] or phone: 202-479-7240.