ClutchPoints
A federal criminal investigation has been launched into the finances of the NFL Players Association (NFLPA), with the Department of Justice (DOJ) and FBI probing allegations of misuse of union funds and self-enrichment by high-ranking officials, according to Don Van Natta Jr. and Kalyn Kahler of ESPN.
The inquiry, confirmed by a confidential “Crisis Management” memo obtained by ESPN, outlines the most severe crisis in the union’s 68-year history and comes amid sweeping leadership changes and mounting legal threats.
The memo, authored by a senior union attorney and circulated to the NFLPA’s executive committee and player representatives this week, states that the union is “now on notice of financial actions that may be criminal.”
Among the “immediate threats” identified are potential violations of federal labor laws, including unfair labor practices and failures in fiduciary duty during the tenure of now-former executive director Lloyd Howell Jr., who resigned days prior. Howell’s departure followed reports of his conflict of interest due to ties with The Carlyle Group and accusations that he improperly expensed union funds for personal use, including visits to strip clubs.
Further compounding the crisis is an ongoing FBI investigation into OneTeam Partners, a $2 billion athlete-licensing joint venture co-founded by the NFLPA and the MLB Players Association in 2019. Both Howell and MLBPA head Tony Clark sat on OneTeam’s board. The federal government, according to the memo, is closely monitoring the union’s response and may expand the DOJ investigation if the NFLPA fails to act decisively.
The document also warns that the National Labor Relations Board (NLRB) could impose financial penalties on the union, including orders to pay “direct or foreseeable pecuniary harms” caused by labor violations. Moreover, the memo points to the lack of oversight over the union’s discretionary funds, estimated at $1.2 billion, and flags the absence of a regulated investment adviser.
The investigation has created a leadership vacuum. In addition to Howell, director of strategy J.C. Tretter also resigned recently. The memo outlines a “triage plan” identifying five interim executive director candidates, three internal union officials, and two former NFLPA presidents, Domonique Foxworth and Eric Winston. A source clarified that these names are recommendations and not part of the official selection process. Notably, former executive director DeMaurice Smith, who led the union from 2009 to 2023, has declined any return to leadership.
The memo also reveals Lloyd Howell Jr.’s involvement in concealing details of a Jan. 14 arbitration ruling from player reps and the executive committee. Though the arbitrator ruled there was insufficient evidence of collusion by NFL owners to block guaranteed contracts, it was found that the NFL’s management council had encouraged teams to minimize such guarantees. Howell’s secrecy over this ruling may expose the union to lawsuits from its members.
The post Federal criminal investigation opened against NFLPA appeared first on ClutchPoints.
