MINNEAPOLIS — A $4 billion lawsuit from the players union accusing NFL team owners of setting a secret salary cap in 2010 was kept alive by a federal appeals court Friday.
The 8th U.S. Circuit Court of Appeals in St. Louis partially reversed a federal judge’s order that had rejected the union’s collusion claim, sending the case back to U.S. District Judge David Doty for further proceedings. The three-judge appeals court panel that heard oral arguments in January disagreed with Doty on one of the union’s two arguments for pursuing damages despite the 2011 collective bargaining agreement that was supposed to relinquish the union’s right to sue for alleged breaches of the old CBA.
The NFL called the appeals court decision “entirely procedural in nature.” and said it’s “far from validating” the claims of the NFL Players Association.
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The league, however, could be forced to make public otherwise-confidential financial and strategic information in court, which the union has pushed for all along.
“We are pleased that the Eighth Circuit ruled that players have the opportunity to proceed with their claims,” the NFLPA said. “Through discovery and a hearing, we can understand how collusion took place.”
The collusion claim seeking at least $4 billion in relief for the players was originally filed in May 2012, less than a year after the new CBA was implemented following a five-month lockout. The final year of the prior CBA was supposed to be “uncapped,” but the union cited public references by Giants owner John Mara and NFL Commissioner Roger Goodell as evidence that a salary cap existed and claimed a loss of $1 billion in cumulative compensation.
Dallas and Washington were penalized for overloading contracts in that 2010 season despite league warnings, and the NFL in 2012 penalized them by taking away $10 million in cap space from the Cowboys and $36 million from the Redskins.
In December 2012, Doty rejected the union’s claim, citing the new CBA language that dismissed all prior claims. The NFLPA appealed soon after.
The 8th Circuit panel — chief judge William Riley and circuit judges Roger Wollman and Bobby Shepherd — sided with Doty in ruling the alleged collusion did not invalidate the 2011 dismissal of claims. However, the appeals judges also said that under a federal rule authorizing relief in exceptional cases where the party being sued disingenuously reached the settlement, the union should be allowed to argue the merit of its lawsuit despite the 2011 dismissal.
Extra points
• Bears long snapper Patrick Mannelly, 39, retired after 16 seasons, a career that included 245 games and 2,282 plays without a botched snap. He helped Chicago set an NFL record for most consecutive unblocked punts — 920 — and another NFL record for games played — 180 — without a blocked punt.
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