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The NFLPA filed a collusion charge against the league and Judge David Doty has agreed to hear arguments in the case to determine whether his court hears the case.
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Judge David Doty denied the NFLPA's collusion claim regarding the 2010 uncapped season, when the league penalized the Dallas Cowboys and Washington Redskins a combined $46 million dollars in cap space.
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Judge David Doty of the U.S. District Court of Minnesota has agreed to hear arguments regarding a lawsuit filed by the NFL Players Association, which alleges that the NFL colluded to have a 'secret' salary cap in the uncapped 2010 year. The lawsuit was filed on May 23 and its merits have been contested by the NFL.
The NFLPA claims that the NFL had a secret $123 million salary cap in 2010, which the Dallas Cowboys and Washington Redskins exceeded. Both were docked salary cap room by the NFL, and lost an appeal. The NFLPA's filing alleges that the Oakland Raiders and New Orleans Saints were both over the secret cap for that season as well.
Doty has not yet made a decision on whether or not his court will hear the case, and will review arguments from the NFL and NFLPA at a hearing on Sept. 6, then determine whether or not to hear the lawsuit.
It has been two weeks since the NFL Players Association filed a collusion complaint against the NFL, claiming a "secret" salary cap was in place during the uncapped 2010 season. On Thursday, the union set about the business of gathering more evidence for its case, submitting requests for documents to the NFL and instructing agents to withhold information related to 2010 contract negotiations, as reported by Pro Football Talk.
The request sent to agents reveals that the NFLPA has already received some evidence from agents. The key passage from the memo reads:
We have spoken with many of you about this claim and your obligation to take all steps to ensure preservation of all documents potentially relevant to the above-captioned matter, and we appreciate the materials received thus far. We write to remind you of your obligation to retain all potentially relevant documents; the term "documents" includes not just hard copy/paper materials, such as all notes taken relating to calls and/or meetings with Club officials, but all electronic communications such as emails and text messages.
On a call with the media on May 23, attorneys for the NFLPA claimed to have "compelling and direct" evidence that the league maintained an unofficial $123 million salary cap in 2010. Additional evidence of a cap that year, according to the union, was revealed in the league's punishment of the Dallas Cowboys and Washington Redskins for violating the cap during the uncapped 2010 season. Both teams appealed the resulting loss of cap dollars, but Special Master Stephen Burbank ruled in favor of the league. The NFLPA filed its collusion case the next day, something the union insists was a coincidence.
The collusion complaint was filed in a Minnesota Federal District Court under Judge David Doty because the NFLPA claims that matter stems from the 1993 Reggie White Settlement. Doty's court has yet to act on the complaint.
Timing is everything in the NFL, from rushing the passer to running a route to setting up a block. Timing is also at the heart of the NFLPA's collusion complaint against the league filed on Wednesday morning, and the outcome of the case could hinge on a question of timing as well as the language from prior agreements between the league and the union.
The timeline of the NFLPA's case starts with what it claims was a revelation of a "secret" $123 million salary cap in place during the uncapped 2010 NFL season. The Dallas Cowboys and the Washington Redskins appealed a total penalty assessed by the NFL of $46 million in cap space stripped from them, due to excessive player spending in 2010. They lost that appeal on Tuesday, on the basis that the NFL can take measures to ensure competitive balance. During the course of that appeal, the union claims it learned of the alleged collusion during the 2010 season.
The NFLPA filed suit the day after those teams lost their appeal in front of Special Master Stephen Burbank. Timing in filing their case is pure coincidence, according to the union's lead attorneys Jeffrey Kessler and David Barrett, who spoke on a Wednesday afternoon conference call.
On the conference call with members of the press, questions over an agreement between the NFLPA and the NFL calling for the reallocation of 2012 cap dollars as a result of the 2010 actions taken by the Cowboys and Redskins continued to surface.
The cap reallocation agreement was reached on March 11, 2012. Why did an agreement covering the reallocation of cap dollars via penalties for spending that took place during the uncapped year not raise a red flag at the time with the union?
The Players Association said that the league gave them little choice. If they did not agree, the 2012 salary cap would have been reduced. According to Jeffrey Kessler on the Wednesday afternoon call, the NFL maintained its stance that the matter centered on those teams taking advantage of the situation to gain unfair competitive advantage. The NFLPA also claims that they had only a small time window to sign the agreement, describing it as a "take it or leave it" proposition.
Asked again whether the issue raised any suspicion, Kessler said, "we trusted the league at its word."
The NFL claims that the NFLPA has no basis for the suit under a stipulation of dismissal reached on August 4, 2011, following the conclusion of last year's labor battle. The league says that the agreement throws out all claims, including anything related to collusion in the uncapped year.
Citing a subsequent order from Minnesota Federal District Court Judge David Doty, the NFLPA says that their claim of collusion is not covered by that because it was not a pending claim. In fact, the union says, they could not have made such a claim because the matter of collusion in 2010 was only discovered in the process of the Dallas and Washington appeal.
The NFLPA collusion claim was filed in the Minnesota District Court because they claim it stems from the Reggie White Settlement, which was resolved and overseen in that jurisdiction.
Kessler said on the call that the NFLPA has not determined the amount of lost salary dollars resulting from the league's "secret" cap in place during the 2010 season. They are currently asking for up to $3 billion in damages.
If the case survives challenges on the basis of the stipulation of dismissal, the NFLPA sounded confident in their ability to prove collusion.
"The evidence here will be more compelling and direct than it was in the MLB case," Kessler said, referring to a series of collusion cases lost by Major League Baseball in the 1980s.
Much of that evidence, the union says, comes from statements made in the media by owners, executives and others affiliated with the NFL. The initial press release from the NFLPA directly cited comments made by New York Giants owner John Mara. Additional evidence will be revealed in the discovery phase, said Kessler, including how the NFL arrived at their alleged $123 million cap during the uncapped 2010 season.
The timing of the case will slow at this point, as attorneys from the league and the union attempt to unwind for the court whether or not the case can proceed on the basis of the dismissal stipulation. If it passes that hurdle and gets to the discovery phase, a pitched battle between both sides (in the media as well as in court) should rival the back and forth fans experienced during last year's lockout. This time, there will at least be football to distract them.
The 2010 NFL season is generating more headlines this week than the looming 2012 season. A day after the Dallas Cowboys and Washington Redskins saw their appeal of cap penalties for contracts handed out in 2010 dismissed, the NFLPA filed a collusion claim against the league for actions taken as a result of the no-cap year in 2010.
The player's union is claiming that the NFL imposed a "secret" $123 million salary cap for teams during the 2010 season. According to the NFLPA complaint, that would violate anti-collusion and anti-circumvention provisions of the Reggie White settlement. In more simple terms, the owners agreed to a secret cap on player salaries despite opting out of the collective bargaining agreement that imposed a cap and the owners then set a new cap without the involvement of the NFLPA.
Quoted in the NFLPA release detailing the complaint, executive director Dominique Foxworth said:
"Our union recently learned that there was a secret salary cap agreement in an uncapped year. The complaint today is our effort to fulfill our duty to every NFL player. They deserve to know, above all, the facts and the truth about this conspiracy."
The NFLPA complaint stems from a quote from Giants owner John Mara in the wake of the penalties leveled against the Cowboys and the Redskins. Asked about the punishment for those two teams, Mara revealed the secret directive to restrict player salaries, according to the union.
On Tuesday, Special Master Stephen Burbank dismissed an appeal by the Cowboys and Redskins over the league's punishment, citing an agreement signed by the league and the union that redistributed the money taken from those two teams' 2012 cap space. The players union says that it was forced to sign that agreement under the threat of having the cap reduced league-wide.
In a response, the NFL says such claims are not allowed under the CBA and the agreement signed by the two entities in August 2011. League spokesperson Greg Aiello said:
"The filing of these claims is prohibited by the Collective Bargaining Agreement and separately by an agreement signed by the players' attorneys last August. The claims have absolutely no merit and we fully expect them to be dismissed.
"On multiple occasions, the players and their representatives specifically dismissed all claims, known or unknown, whether pending or not, regarding alleged violations of the 2006 CBA and the related settlement agreement. We continue to look forward to focusing on the future of the game rather than grievances of a prior era that have already been resolved."
NFL owners in 2010 voted to opt out of the previous collective bargaining agreement. That allowed for the uncapped season that same year, and set up the lockout that stretched from March 2011 through the end of July 2011. The lockout ended with a new 10-year CBA.
An independent arbitrator upheld the salary cap penalties Roger Goodell handed down to the Cowboys and Redskins earlier this year, underscoring his limitless power in the NFL. There's only one way this can end.
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Special Master Stephen Burbank sided with the NFL in dismissing a grievance filed by the Dallas Cowboys and Washington Redskins over the league's penalties for salary cap violations during the uncapped 2010 season. Hours after Burbank's decision, the Cowboys and Redskins revealed in a joint statement that they would abide by the ruling and not pursue further action.
The joint statement released by the teams on Tuesday afternoon read:
"We pursued our salary cap claim pursuant to the CBA and we respect and will abide by the arbitrator's decision to dismiss. We will continue to focus on our football teams and the 2012 season."
Dallas was stripped of $10 million in cap space and Washington $36 million for contracts issued during the 2010 season, which was uncapped after owners opted out of the collective bargaining agreement. Burbank accepted the NFL's argument that the league and its commissioner can take action to maintain competitive balance within the league.
For more on the Cowboys, visit SB Nation's Blogging The Boys and SB Nation Dallas. And for more on the Redskins, check out Hogs Haven and SB Nation DC.
Earlier this offseason, the NFL stripped the Dallas Cowboys and Washington Redskins of millions of dollars of salary cap space -- $10 million for the Cowboys and $36 million for the Redskins -- for the way in which they structured contracts in the uncapped year. At first glance, it didn't appear that they violated any rules -- all the contracts were approved by the league office -- but the owners still voted not to rescind the penalties against each team.
Both the Redskins and Cowboys filed a grievance arguing their case but the arbitrator, Stephen Burbank, has ruled against them. The NFL's motion to dismiss the claim was passed, and the penalties will not be rescinded.
As NFL Network's Albert Breer points out, this is a fairly major precedent set by Burbank.
Burbank granting the motion to dismiss means he agreed with NFL's argument that Goodell can adopt measures to maintain competitive balance.
For more on the Cowboys, visit SB Nation's Blogging The Boys and SB Nation Dallas. And for more on the Redskins, check out Hogs Haven and SB Nation DC.
The Washington Redskins and Dallas Cowboys will meet before a league arbitrator on May 10 to appeal the salary cap penalties levied against them by the NFL. The arbitration hearing will take place before league system arbitrator Stephen Burbank at a location of his choosing.
Both teams were accused of abusing the uncapped 2010 season to front-load large contracts for the likes of Albert Haynesworth and DeAngelo Hall in Washington's case, and Miles Austin in Dallas's case. The Redskins were docked $36 million in cap space, applied over the upcoming season and next. The Cowboys had $10 million taken out of their payroll. The teams argue that at the time there were no rules against the procedure.
League owners voted 29-2 (the Redskins and Cowboys voted against, the Tampa Bay Buccaneers abstained) in March to move forward with the penalties. Competitors argued that the large contracts paid to just a few players created a ripple effect that negatively impacted teams. Austin's big contract drove the franchise tag figure for wide receivers from $9.5 million in 2010 to $11.3 million in 2011, for example, making it very difficult for the San Diego Chargers to work out a long term deal with Vincent Jackson.
Keep up with the latest developments with our Redskins, Cowboys Salary Cap StoryStream. For more on the Cowboys, visit SB Nation's Blogging The Boys and SB Nation Dallas. And for more on the Redskins, check out Hogs Haven and SB Nation DC.
In what should be a surprise to no one, NFL owners voted 29-0 not to rescind the salary cap penalties against the Washington Redskins and Dallas Cowboys, who were hit with $36 million and $10 million, respectively, in salary cap reductions. One team abstained and the Redskins and Cowboys obviously didn't vote.
NFL Commissioner Roger Goodell, who represents NFL owners, made the original ruling on the case so it shouldn't be a surprise that the owners, who are benefiting from the penalties via a $1.6 million increase in salary cap space, voted it down.
The case is not over, though, as NFL Network's Jason La Canfora reported last week.
It is called a system arbitration case (Article 15 of the CBA) and will be heard by Professor Stephen Burbank of the University of Pennsylvania, according to the league.
So Tuesday's vote by the owners means that the penalties will continue to be imposed while the arbitration case is heard.
Keep up with the latest developments with our Redskins, Cowboys Salary Cap StoryStream. For more on the Cowboys, visit SB Nation's Blogging The Boys and SB Nation Dallas. And for more on the Redskins, check out Hogs Haven and SB Nation DC.
It looks like the Redskins and Cowboys will fight the NFL's decision to penalize them millions of dollars in salary cap space for using the NFL's uncapped year to front-load salaries and save future cap space. The teams have begun the process, filing a formal grievance against the NFL and NFLPA, according to a report from ProFootballTalk.
The NFL has docked the Redskins $36 million dollars and the Cowboys $10 million dollars in cap space, which can be spread across the next two seasons.
It has been reported that the NFL repeatedly warned teams not to use the uncapped year to manipulate the salary cap, but that could also be perceived as collusion. That will be an important debate, especially since the decision could come from outside the League:
The fact that the Cowboys and Redskins included the union in the grievance triggered the procedure that allows the teams to avoid a situation in which Commissioner Goodell resolves the matter. Instead, a true outsider will determine whether the action complied with the terms and/or the spirit of the labor deal.
Keep up with the latest developments with our Redskins, Cowboys Salary Cap StoryStream. For more on the Cowboys, visit SB Nation's Blogging The Boys and SB Nation Dallas. And for more on the Redskins, check out Hogs Haven and SB Nation DC.
Just before NFL free agency began this week, the league penalized the Dallas Cowboys and Washington Redskins against the salary cap for taking advantage of the uncapped year in 2010. It makes no sense, but it's not surprising.
The Washington Redskins received a major blow on Monday when it was reported they would be docked $36 million in salary cap space due to the way they front-loaded their contracts during the uncapped year. That loss of salary cap space, according to multiple reports, will be spread out over two years.
ESPN 980 in Washington D.C. reports, and others have confirmed that the Redskins will take an approximate $18.4 million hit this year.
Per the report, the Redskins had approximately $31 million in salary cap space on Monday, and now they're down to $12.4 million. You can add another $5 million or so to that number with the money they saved by releasing O.J. Atogwe and Mike Sellers this week. So, according to the report, the Redskins will have approximately $17.4 million in cap space after the Atogwe and Sellers releases are posted.
The Redskins released a statement on Monday indicating they "have received no written documentation from the NFL concerning adjustments to the team salary cap in 2012 as reported in various media outlets."
In other words, the Redskins (and Cowboys) aren't going down without a fight. We'll see how this plays out.
For more on the Redskins, check out Hogs Haven and SB Nation DC.
The NFL has issued a statement on the reports that the Washington Redskins and Dallas Cowboys will lose salary cap space after using the uncapped year as a tool to dump money.
"The Management Council Executive Committee determined that the contract practices of a small number of clubs during the 2010 league year created an unacceptable risk to future competitive balance, particularly in light of the relatively modest salary cap growth projected for the new agreement's early years. To remedy these effects and preserve competitive balance throughout the league, the parties to the CBA agreed to adjustments to team salary for the 2012 and 2013 seasons. These agreed-upon adjustments were structured in a manner that will not affect the salary cap or player spending on a league-wide basis."
The NFL repeatedly warned teams not to use the uncapped year as a way to dump money and save future salary cap space. The Cowboys will lose $10 million in salary cap space between 2012-13 while the Redskins are out $36 million in cap space over the next two seasons.
The rest of the money will be distributed to 28 other teams, excluding the New Orleans Saints and Oakland Raiders, who presumably engaged in similar tactics as the Redskins and Cowboys.
For more on the Cowboys, visit SB Nation's Blogging The Boys and SB Nation Dallas. And for more on the Redskins, check out Hogs Haven and SB Nation DC.
The NFL will dock the Washington Redskins $36 million in salary cap space over the next two years and the Dallas Cowboys will lose $10 million after each team engaged in "systemic dumping" of salaries during the uncapped year.
I didn't even know there was a rule like this in place but, according to multiple reports, the Redskins and Cowboys were warned about it several times. Pro Football Talk reports that the league told teams "at least six times" that there would be consequences for teams who used the uncapped year as a vehicle to dump as much money as possible and decrease future salary cap numbers.
The disconnect I see is that the NFL should have said back in 2010 that the Redskins and Cowboys contracts were a problem. Maybe they did and we just don't know that but it seems to me that if they violated some sort of rule then the league should have informed them of that back then, and not two years later.
For more on the Cowboys, visit SB Nation's Blogging The Boys and SB Nation Dallas. And for more on the Redskins, check out Hogs Haven and SB Nation DC.
Upon hearing the Dallas Cowboys and Washington Redskins were reportedly penalized for violations in the uncapped year, I figured the punishment would be a couple million dollars in salary cap space. No big deal, right?
Wrong. According to ESPN, the Cowboys will be docked $10 million in cap space and the Redskins will lose out on a whopping $36 million. That's an incredible amount of space for Washington, who at last check had a reported $31.1 million in salary cap space. They can divide that up between 2012 and 2013, according to the report.
That salary cap space will be distributed to the rest of the league -- about $1.6 million per team -- except the New Orleans Saints and Oakland Raiders won't receive any (but don't lose any either).
The Cowboys had just under $5 million available so, while it's not quite $36 million, that $10 million will affect them.
For more on the Cowboys, visit SB Nation's Blogging The Boys and SB Nation Dallas. And for more on the Redskins, check out Hogs Haven and SB Nation DC.
The Cowboys and Redskins will reportedly have millions of dollars in salary cap space taken away by the NFL for how they front-loaded contracts during the uncapped season.
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