"Secret" $55 Million Loan Primary Focus Of Federal Investigation Into Dan Snyder

Washington Commanders owner Dan Snyder's troubles continue to mount, as he is now facing a federal investigation into allegations of financial misconduct related to a $55 million line of credit taken out by the team in 2020.

The loan, which was reportedly taken out without the knowledge or approval of Snyder's minority partners, is said to be the "primary focus" of the criminal inquiry, which is being led by a group that includes FBI and IRS agents.

According to @DVNJr, federal prosecutors are investigating whether Dan Snyder took out an illegal $55 million loan—something the NFL declined to look into, he reports. Much more here: https://t.co/f0XJPM5n5h pic.twitter.com/KcUdroECs1

— Mina Kimes (@minakimes) February 28, 2023

Snyder's minority partners, including Fred Smith, Dwight Schar, and Robert Rothman, had previously demanded that the NFL investigate the origin of Snyder's loan during a confidential arbitration hearing, but neither Commissioner Roger Goodell nor the NFL's arbitrator looked into any wrongdoing by Snyder.

The three former partners alleged in the arbitration filing that Snyder had 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. 

“This is jail time type of fraud.”

Bombshell reports today about a “secret” $55M loan the Washington Commanders took out “without the knowledge and required approval of [Dan] Snyder's minority partners.” This loan has been the primary focus of federal prosecutors. Not only that,… https://t.co/5PG62grdS5 pic.twitter.com/17sNeAbQmO

— Dan Lust, Esq. 🎙 (@SportsLawLust) February 28, 2023

"This is jail time type of fraud. The NFL owes them as much of a fair shake as it owes Snyder. And the league had no interest in finding out what happened. They buried it and didn't investigate it and covered it up," 

The investigation is likely to complicate Snyder's efforts to sell the Commanders, which has been in the works for some time.

Snyder is said to be demanding indemnity from future legal action as a condition of any sale, but the federal investigation may make it difficult for him to find a buyer willing to take on the team's potential legal liabilities.  
Photo Credit: Matthew Emmons-USA TODAY Sports