Criminal Investigation in the NFL Players Association
A criminal investigation into the finances of the NFL Players Association (NFLPA) has revealed possible irregularities, including the misuse of funds and personal enrichment by union officials. This information comes from a confidential document obtained by Alofoke Deportes. The scope of the federal investigation was detailed in a memo titled “Crisis Management,” drafted by a senior union lawyer and shared with the executive committee and NFLPA player representatives this week. The document, confirmed by multiple sources, indicates that the union is “now aware of financial actions that could be criminal” and that it faces “immediate threats that require rapid action”. This memo, delivered a few days after the resignations of CEO Lloyd Howell Jr. and Chief Strategy Officer JC Tretter, outlines the biggest crisis in the union’s 68-year history. Among the “immediate threats” listed, a possible action by the National Labor Relations Board for “unfair labor practices” and a “breach of fiduciary duty oversight practices during Howell’s tenure” are mentioned. The document does not specify which individuals could be under criminal investigation. Howell has not responded to multiple requests from Alofoke Deportes for comment, and his lawyer did not immediately respond to a call. Tretter, when contacted, stated that he is not being investigated. A player who received the document by email commented that it contained “some things that people should reflect on”.A union spokesperson declined to comment. A source familiar with the memo indicated that it “reflects the views and recommendations of one person”. In May, it was reported that the FBI was investigating financial transactions related to OneTeam Partners, a $2 billion group licensing company co-founded by the NFLPA and the Major League Baseball Players Association in 2019 to monetize the name, image, and likeness of athletes. Howell and MLBPA chief Tony Clark held positions on the OneTeam board of directors. The document warns that “the government is observing the response [and] could quickly increase and expand the scope of the Justice Department’s criminal investigation.” They urge the board and officials to “demonstrate to the government [and] union members that they are acting immediately to uncover the depth of the problems in the union [and] related entities.” Marked as “privileged” and with the union logo on each page, the document notes that the players’ association is facing a “leadership vacuum” and urges player representatives to take “prudent and definitive action” to avoid the oversight ordered by the Department of Justice and supervised by the NFLPA court. Howell’s two-year term at the NFLPA was characterized by apparent conflicts of interest and a culture of secrecy that came to light in a series of recent reports. On January 14, an arbitrator ruled that there was insufficient evidence to prove that the owners had conspired to prevent players from obtaining fully guaranteed contracts. However, the arbitrator did find that the NFL’s management council encouraged the owners to reduce guaranteed money. Howell reached a confidentiality agreement with the league to keep the details of the ruling out of the executive committee and NFLPA player representatives. The document states that: “The NLRB may order the union to pay ‘direct or foreseeable pecuniary damages’ caused by unfair labor practices, which means $$$”. The document identifies five candidates to be interim executive director as part of the union’s “triage plan.” Four of the five are former NFL players. The NFLPA has not been led by a former player since Gene Upshaw served as executive director for a quarter of a century, from 1983 until his death in 2008. Three of the candidates are union insiders: Lester Archambeau, former player and senior director of player affairs; Don Davis, former player and chief player officer; and Teri Smith, who has served as the NFLPA’s chief operating officer since 2022. The two external candidates appointed, both former players, have held high-level leadership positions in the NFLPA: Domonique Foxworth, who served as NFLPA president from 2010 to 2014, and his successor in that position for six years, Eric Winston. The source familiar with the matter “reiterates that those candidates are the recommendation of a person and do not necessarily reflect the current process of the players.” The players were told that hiring an outside person to manage the NFLPA crisis could be advantageous because it is not clear how deep “the problems” may be, according to the union’s memo. “You are lucky to have two recent, very successful former NFLPA presidents who might be willing and able to take leaves of absence from their current employers.” Foxworth is an ESPN commentator. Winston is the president of Winners Alliance, a player licensing and sponsorship company. The interim CEO should be willing to serve for 12 months, although the term could be shorter if the players’ representatives decide to hire a permanent CEO sooner, according to the document. “The interim’s expectations should be clearly listed with work plans and clear reports adopted to keep the [Executive Committee] and the Board regularly informed in detail,” says the document. The memo also reveals the possibility of players suing the union over the collusion decision in January. Additionally, the document warns player representatives that there is no “oversight” of an investment advisor for the union’s discretionary funds: “$1.2 billion of your dues.” The 32 player representatives could select a new executive director as early as this weekend. The memo suggests to the players that “it might be prudent to ask an outside person with a unique qualification to serve as the union’s triage manager.” The memo also says that none of the candidates for interim executive director should be required to promise that they will not seek election to become the permanent leader of the union. Several sources close to the union said that another possible candidate to take over as interim executive director is DeMaurice Smith, who preceded Howell as leader from 2009 to 2023. A person close to Smith, who has written a tell-all book to be published early next month, said that the former union chief is not interested in returning to the NFLPA.There’s good advice on what we should think about for the future.
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