With Daniel Snyder seemingly on the verge of selling the Washington Commanders, the NFL could soon be free of its most controversial owner.
Or not.
Snyder selling the Commanders wouldn’t extinguish his ties to the team, the league or other owners. Civil litigation and criminal investigations tied to Snyder and the team, including sexual harassment and ticket revenue fraud, will ensure that he’ll remain susceptible to being at least a witness—and possibly a defendant—in future legal proceedings.
Even as a former owner, Snyder will need to comply with subpoenas and discovery requests. He may need to provide sworn testimony and turn over emails, texts and other materials relating to his time with the Commanders and, just as important, his time in the exclusive club of NFL owners.
Snyder and other Commanders officials are likely most worried about a criminal investigation launched by the office of Jessica Aber, the U.S. Attorney for the Eastern District of Virginia (EDVA), into possible fraudulent conduct by Snyder and/or team officials. How Snyder financed the buyout of three limited partners in 2021 and how truthfully the team reported revenue and communicated with consumers are reportedly of interest. Snyder, as well as team and league officials (both current and former), may be in possession of relevant evidence and knowledge. The same is true of other teams’ owners—especially if any questionable practices by the Commanders are replicated by those teams and Snyder can use that knowledge as leverage.
Criminal investigations have no set timetable. Snyder agreeing to sell the Commanders and the NFL approving a sale would not trigger deadlines or actionable milestones for the feds. A criminal investigation could take multiple months or even years, and involve the empaneling of a grand jury. The investigation will determine if criminal laws were broken and, if so, whether charges ought to be brought. Whoever happens to be the Commanders’ owner will have no bearing.
The Commanders also face civil litigation and governmental probes that could lead to financial penalties. The District of Columbia is suing the team for alleged harm to consumers and multiple women accuse the team of sexual harassment and other workplace misconduct. Last year members of the House Oversight Committee wrote to Federal Trade Commission chair Lina Khan, telling her that “for over a decade, Commanders executives may have withheld” as much as $5 million in security deposits from around 2,000 customers. Whether the FTC acts remains to be seen.
As these post-Snyder activities play out, the Commanders’ new owners will inherit all the good and all the bad. Unless Snyder contractually agrees to cover legal costs—which seems unlikely since Snyder reportedly wants the league to indemnify him—the new owners may need to write more checks long after paying perhaps $6 billion for the team.
Those new owners, as well as the league, would be wise to maintain a cooperative relationship with Snyder. League investigations into the Commanders might end with Snyder’s departure but legal investigations won’t. Snyder has owned the Commanders since 1999 and knows NFL officials and fellow owners well. Once he sells, he’ll no longer be bound by NFL contractual duties or the threat of internal league penalties, like fines or draft pick forfeitures.
Who knows what intel Snyder might share and what might prompt him to share it?
