Report: Commanders, Dan Snyder's $55M Loan 'Primary Focus' of Federal Investigation

Washington Commanders owner Dan Snyder is under federal investigation over a line of credit taken out by the team when he was attempting to buy out his minority partners.

Per ESPN's Don Van Natta Jr., a "secret" $55 million loan is the "primary focus" of an investigation into allegations of financial misconduct by Snyder and the Commanders being led by federal prosecutors in Virginia.

The criminal inquiry is being led by a group that includes FBI and IRS agents.

According to Van Natta, the loan was included as a footnote in the Commanders' financial report from April 2020.

"The note revealed a $55 million credit line the team had taken out 16 months earlier without the knowledge and required approval of Snyder's minority partners—the three billionaires who owned 40 percent of the franchise, according to documents obtained by ESPN," Van Natta wrote.

Van Natta noted Fred Smith, Dwight Schar and Robert Rothman—Snyder's three former partners—"demanded" the NFL investigate the origin of Snyder's loan during a confidential arbitration hearing, but neither NFL Commissioner Roger Goodell nor the NFL's arbitrator looked into any wrongdoing by Snyder.

One source told Van Natta that it seemed the league "had no interest in finding out what happened."

Smith, Schar and Rothman were minority owners of the Commanders with Snyder since 2003. ESPN's John Keim reported in March 2021 that NFL owners unanimously voted to approve Snyder's purchase of their 40.5 percent stake worth $875 million.

According to Keim, the NFL also approved a $450 million debt waiver that Snyder would have to repay by 2028.

Smith, Schar and Rothman alleged in the arbitration filing with the NFL that Snyder used the Commanders as his "personal piggy bank," including a $4.5 million charge to the team for putting its logo on his private jet.

NFL spokesman Brian McCarthy issued a statement to Van Natta about the federal inquiry:

"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. 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."

Snyder has been at the center of various investigations over the past two years. In addition to two separate NFL investigations, he testified before the United States House Committee on Oversight in July over allegations of workplace misconduct.

The House released a 79-page report in December that determined Snyder established a "culture of fear" within the organization and "sexual harassment, bullying, and other toxic conduct" permeated the workplace in Washington for decades.

Dan and Tanya Snyder announced in November they retained BofA Securities to consider potential transactions. The Snyders have owned the Commanders since 1999.