Judge Rules Player Agents Must Abide by NFL CBA

Concludes that Steinberg, Moorad and 49ers circumvented salary cap


Minneapolis, March 31, 2000 -- The NFL and the NFL Players Association had asked United States District Judge David Doty, who oversees the parties' collective bargaining agreement, to overturn an arbitrator's ruling in an investigation into allegations that the San Francisco 49ers made undisclosed deals to get around the NFL's salary cap.

The unusual turn of events began on February 18, when a special master (one who a court appoints as an arbitrator) found that agents are not part of the 1993 collective bargaining agreement and cannot be fined or sanctioned under terms of that agreement for violating the labor contract.

Judge Doty overruled that decision. He concluded held that because the agents for the NFL players receive  benefits from the league's labor agreement, they cannot refuse to abide by its obligations. Thus, agents are subject to penalties if they make secret deals. The league contended that the 49ers and agents Leigh Steinberg, Jeffrey Moorad and Gary Wichard had entered into secret agreements for payments to players Steve Young, Brent Jones and Jim Druckenmiller.

An NFL attorney stated "this is a rare case where the NFL and the players union agree…we all agree that agents are bound by the agreement."

The investigation started when Eddie DeBartolo walked away from the 49ers because of a criminal investigation involving him in Louisiana, and turned the team over to his sister Denise DeBartolo York. She sent her husband to San Francisco to oversee the 49ers, and shortly thereafter John York turned the team in to the league for what he thought could be salary cap violations by the previous administration.

Doty's decision could establish a precedent for negotiations throughout the NFL. If Doty can fine the agents as much as $250,000 each under the CBA, and the team $2million or more, depending on how Commissioner Paul Tagliabue feels. He has the right to fine beyond that amount for conduct detrimental to the league.

Judge Doty has been involved in such a dispute because he  approved the ground-breaking collective bargaining agreement eight years ago. That CBA resulted after years of antitrust litigation and became a settlement of the dispute.

 

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