>

Exactly. Something that happened 25 years ago, probably in privacy, and pre-cell phone. It’s the easiest thing to deny. 
He 100% did it. The “it’s only fair” joke is right up his alley.
He didn't flash her, but he will tell you the names of his 4 friends who did if you stop saying he did.  
Edit: I am not advocating for the idea that he shouldn't have snitched. I just think if you are the kind of asshole who would traffic coke then rat out your "coworkers" you are probably the kind of asshole who would flash someone your dick.
And not saying you shouldn't turn someone in for sexual misconduct.
Also, it's a joke. >

What am I missing here? >

Tim Allen ratted on his cohorts to get out of trouble for carrying a shit load of cocaine. >

Well he is Tim the Tool Man..  its in the name. >

His real name is literally Tim Dick. >

Tim Allen should’ve played Woody >

Why would he admit to it if he did?