Commanders Owner Dan Snyder Accused Of Misappropriating Funds Over $55 Million
A notation in a financial report from April 2020 marked the beginning of DAN SNYDER’S LAST BREAKUP with his longtime minority partners in Washington’s NFL team.
The memo disclosed a $55 million credit line the club had obtained without Snyder’s knowledge and without the consent of the three billionaires who controlled 40% of the franchise 16 months prior.
Commanders Owner Dan Snyder Accused Of Misappropriating Funds Over $55 Million
Several people with direct knowledge of the investigation informed ESPN that the hidden $55 million loan has been the principal focus of federal prosecutors in Virginia who are looking into claims of financial malfeasance by Snyder and the Washington Commanders.
It’s all starting to make sense now.
Back in 2020, the Washington Post obtained a text between Dan Snyder and John Moag, attorney for the three minority partners looking to sell their shares of the team.
Moag threatened Snyder "you know what I know…it’s the more serious shit.” pic.twitter.com/lkI52CRnAR
— Dan Lust, Esq. 🎙 (@SportsLawLust) February 28, 2023
Subpoenas for a number of papers pertaining to the team’s finances, including the loan, have been issued by a federal grand jury. According to records, the partners’ NFL arbitration suit and other supporting data, like as emails and letters between bank attorneys and club executives, were obtained by the prosecution. A group of FBI and IRS officers are in charge of the criminal investigation, according to sources.
lmao MULTIPLE grades of F- for Washington
Training room: F-
Travel: F-
Treatment of Facilities: F
Training staff: D
Nutrition: D+
Weight room: C+
Strength Staff: A+
another proud moment for Dan Snyder https://t.co/a1N9CtUS0A
— Warren Sharp (@SharpFootball) March 1, 2023
According to Van Natta, the Commanders’ financial situation is the focus of a federal prosecutor’s investigation. A grand jury has collected additional papers including emails and letters and has issued subpoenas for the Commanders financial information, including anything linked to the loan. Yet while Snyder tries to sell the club for a record-breaking $7 billion, all of this is taking place.
My report on today's @espn report on Dan Snyder
– Bank Fraud
– $55 million dollar loan
– $4.5 million "advertising fee" to put team logo on Snyder's private jetI spoke with @DVNJr, who broke the story, on how these latest allegations might impact the sale of the @Commanders. pic.twitter.com/dJgrCfzQaV
— Scott Abraham (@Scott7news) February 28, 2023
Snyder allegedly used the team to fund his lifestyle
The $55 million Bank of America loan is purportedly found in the weeds of an audit in April 2020 by the three minority partners of the Commanders, Robert Rothman, Dwight Schar, and Frederick W. Smith. Snyder reportedly failed to pay the partners their quarterly earnings for the first time later that same month.
The partners then reportedly looked into the team’s finances and found that Snyder had allegedly been using it as his “personal piggy bank.” They claimed that Snyder was using the team to pay for “personal yachts, multiple residences, the services of more than 60 members of his personal staff, multiple vehicles in the U.S. and Europe, and countless meals, wine/beverages [and] entertainment” in their arbitration petition to the NFL (which was obtained by ESPN).
Dan Snyder is trying to give us one last parting gift by blocking someone from buying the team that can bring us structure and $ to build us a Super Bowl worthy stadium that he couldn’t build is just sad. Thought he cared about the team. NFL and Roger need to step in. 😢
— Mark Moseley Jr (@MarkMoseley3) February 25, 2023
Moreover, Snyder allegedly charged the team $4.5 million for “promotion” after having the Commanders’ insignia imprinted on his personal plane. He then allegedly leased his jets back to the team.
These concerns were reinforced by a letter from Snyder’s attorneys to the partners in June, which ESPN was able to get, in which it was stated that the club would be paying Snyder over $7 million for “unreimbursed business expenditures” for the years 2017 through 2020. These “business costs” allegedly included a luxurious boat party that Snyder hosted and attended by Jerry Jones of the Dallas Cowboys, Terry Pegula of the Buffalo Bills, and Robert Kraft of the New England Patriots. In addition, Snyder reportedly informed them that he had spent $20 million of the $55 million loan.
You know what's wild? That Dan Snyder had the gall to tell his new wife that her already succeeding business wouldn't last because the financials don't work. Manipulative bastard wanted her completely dependent on him, and she fell for it. Now he's $1b in debt. I'm certainly no… pic.twitter.com/ewt3PsU9IV
— SkinsDraft (@SkinsDraft) March 1, 2023
Snyder allegedly replaced the three partners on the Commanders board in mid-June, which is what ultimately motivated them to take action. According to ESPN, the partners thought there was a breach of their shareholder agreement and that, together with what they had learned about Snyder’s other alleged activities, was sufficient justification for them to notify the NFL and send them an arbitration petition.
Van Natta claims that the partners’ claim that Snyder unlawfully secured the $55 million loan was included in the arbitration petition. Before the loan could close, Bank of America sought approval from the Commanders’ board of directors, but one of the partners said that the board hadn’t convened in years. Snyder nevertheless received the money, which Goodell authorised without informing the Commanders’ minority investors.
Right now it looks like Dan Snyder is either going to:
A) Sell the team that he loves so much to his sworn enemy Jeff Bezos
or
B) Get voted out by the other NFL owners…and then watch it get sold to Bezos.Either way he will leave pathetic and disgraced. A true shame.
— Eric Nathan (@BarstoolNate) February 28, 2023
The partners “reluctantly” agreed to a mediation in January 2021 presided over by Goodell to resolve the buyout conditions after submitting the petition to the NFL. ESPN claims that Goodell and NFL general counsel Jeff Pash, who is said to be close to Snyder, both declined to look into the covert loan.
The partners had no choice but to return to Snyder their 40% ownership position in the franchise, which they did for $875 million. This occurred two years ago. The 40% would have been worth $2.8 billion, given that Snyder is currently attempting to sell the franchise for $7 billion.
Commanders owner Dan Snyder allegedly took out a $55M credit line without knowledge and approval from his minority partners, per @DVNJr
This "secret loan" is now the primary focus of a federal investigation into potential financial misconduct by Snyder and the Commanders pic.twitter.com/GbhjEnu0LV
— Bleacher Report (@BleacherReport) February 28, 2023
Commanders Response
the Commanders released this statement through team counsel John Brownlee:
“The team has been fully cooperating with the Eastern District of Virginia since it received a request for records last year. The requested records only relate to customer security deposits and the team’s ticket sales and revenue. The team will continue to cooperate with this investigation.”
NFL’s Official Statement
The NFL released a statement to ESPN through spokesman Brian McCarthy.
“The parties had a series of disputes, which were certified to the Commissioner for arbitration as required by league rules. The Commissioner appointed a highly-respected attorney as the arbitrator and none of the parties objected to that appointment.”
“After several months, the parties were asked if they would be interested in participating in a confidential mediation with the Commissioner, which they agreed to do,” McCarthy continued in the statement. “The mediation lasted for two days and the parties subsequently reached an agreement whereby the three limited partners sold all of their interests in the team to Mr. Snyder at an agreed-upon price and other terms. Everyone was represented by very sophisticated legal and financial advisors. The agreement included full releases of all claims that were or could have been asserted by any party in the arbitration proceeding.”
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