Commanders Reach Settlement With MD Attorney General Over Ticket Security Deposits

MARYLAND — The Maryland attorney general’s office reached a settlement Friday with the owners of the Washington Commanders over the team’s security deposit practices for season ticket holders.

The embattled team must return any outstanding deposits owed to Maryland fans, and pay a $250,000 fine.

The announcement from the office of Maryland Attorney General Brian Frosh comes a day after D.C. Attorney General Karl Racine filed a lawsuit against the Commanders, accusing the team of cheating D.C. ticket holders out of their deposits for season tickets and using the money for its own purposes.

The Consumer Protection Division of the Maryland attorney general's office reached the settlement with Pro Football Inc., the Baltimore-based corporate entity that owns the Commanders. The Commanders play their home games at FedEx Field in Landover, Maryland.

“For many years, the Commanders kept money that was not theirs. It belongs to their customers,” Frosh said in a news release Friday. “Today’s settlement will require the team to return the monies owed to consumers. The Commanders will pay a penalty, and they will be enjoined from engaging in similar practices in the future.”

READ ALSO:

• Commanders' Season Ticket Holders In DC Cheated By Team: District AG
• Snyder, NFL Interfered In Harassment Investigation: DC Lawsuit

The Washington Commanders collected security deposits from season ticket holders and other purchasers of tickets for seats in luxury suites. Under its contracts with ticket holders, the team was required to return the deposits within 30 days after their contracts for seat licenses expired or were terminated, according to the attorney general's office.

The Commanders did not return the deposits to consumers unless they requested the return in writing, according to the attorney general's office, which accused the team of violating the Consumer Protection Act when it failed to honor its contracts and return the deposit to consumers.

In 2009, a Washington Commander employee warned the team's management that the practice of retaining security deposits unless their return was requested in writing was illegal, according to the attorney general's office. At the time, the Commanders were holding more than $500,000 in security deposits that were owed to Maryland consumers whose contracts for tickets had expired.

The settlement states the team "does not admit, agree with, or concede any allegations" in the allegations section of the agreement.

Under the settlement, the Commanders are required to refund all security deposits that have not yet been returned to consumers who are no longer ticket holders within 30 days. If any of the payments cannot be returned for any reason, the team must turn the funds over to be held as unclaimed funds.

The settlement also contains an injunction requiring the team not to mislead consumers about its security deposit practices and to return in the future any security deposits they collect from fans within 30 days of the cancellation or termination of their contracts to purchase tickets.

The attorney general's office said the matter was first referred to it by the U.S. House Committee on Oversight and Reform in April.

Consumers who bought season tickets or tickets to luxury suites at Commanders professional football games and believe they are owed a refund of their security deposit can contact the Maryland attorney general's office at 410-576-6569.