NFL Controversy: Confidentiality Agreement and Possible Collusion
An unusual confidentiality agreement between the NFL and the leaders of the NFL Players Association (NFLPA) has generated controversy. This pact concealed details of an arbitration from the players, including findings about league executives who urged team owners to reduce player compensation. Referee Christopher Droney ruled on January 14 that there was insufficient evidence of collusion by the owners following Deshaun Watson’s record contract in 2022. However, Droney concluded that the NFLPA demonstrated that Commissioner Roger Goodell and the league’s general counsel, Jeff Pash, urged the owners to restrict the guaranteed money in players’ contracts. The appeal is a reflection of our obligation to enforce the CBA and our commitment to protect the interests of our players. We will do what is best for the players and exhaust our options to do so. The confidentiality agreement kept the details of the 61-page ruling secret until two weeks ago, when a podcast published the document, causing a stir among union members. Some players expressed surprise and questioned why the union did not share the information.On Tuesday evening, nearly six months after Droney’s decision, the NFLPA, led by Executive Director Lloyd Howell Jr., decided to appeal the ruling. The arbitration case centered on discussions between league executives and owners after the Cleveland Browns signed Watson. The decision to appeal, which will be heard before a three-arbitrator panel, comes at a time when Howell’s leadership has been questioned.
Attorney Peter Ginsberg, who has represented NFL players for decades, was surprised by the confidentiality agreement. According to Ginsberg, the union deliberately prevented players from receiving crucial information about NFL operations. The confidentiality agreement only allowed the decision to be shared with the league’s and union’s lawyers, as well as a small group of executives. According to sources, the investigation was triggered by a May report revealing that the FBI and federal prosecutors are investigating the union’s financial affairs related to a multi-million dollar group licensing firm, OneTeam Partners. Howell and MLBPA CEO Tony Clark are on the OneTeam board of directors. Not long after the agreement was signed, Howell informed the executive committee of 10 active players and union president Jalen Reeves-Maybin in a conference call. Howell informed the committee that the NFLPA had lost its collusion complaint, but did not share details of Droney’s findings or copies of the ruling with the players. Instead, he blamed his predecessor, DeMaurice Smith, for wasting resources on the three-year legal battle. Smith filed the complaint in October 2022. According to sources, the union had not previously signed a confidentiality agreement with the NFL that would prevent sharing arbitration rulings with the union’s executive committee and the 32 player representatives. Contrary to what is established in the CBA, copies of the ruling were not shared with the 32 NFLPA player representatives at the NFLPA annual meeting held in Hawaii last March. Mike McCartney, an NFL agent, noted that Droney’s conclusion about the management council’s influence in reducing guaranteed money would have been helpful for players and agents negotiating deals in the last six months. Lorenzo Alexander, a former executive committee member, said that during his tenure, there was usually some type of communication or updates on what was happening. A former player representative questioned the union’s silence on the arbitrator’s ruling. According to the CBA, appeals to arbitration decisions must be filed within 10 days. The confidentiality agreement contained language that allowed the union to exceed that deadline and also granted the league additional time to seek reimbursement of its legal costs. On Wednesday, a source familiar with the league office said the NFL notified the union of its intention to seek fees and legal costs of more than $12 million. The union elected Howell as executive director in June 2023. He was paid $3.6 million last year. According to a source who heard Howell’s presentation to the executive committee, he ran on a platform of fresh ideas and transparency.
