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American Needle case will have a huge impact on collective bargaining

In connection with Monday’s decision from the U.S. Supreme Court in the American Needle case, the league and the NFLPA have assumed dramatically different positions regarding the relevance of the ruling to the collective bargaining process.  The union regards the American Needle outcome as a victory — and the league thinks it’s irrelevant.

On Tuesday, Commissioner Roger Goodell echoed that point.  “I’ve never bought that,” Goodell said regarding the connection between American Needle and the labor discussions.  “I’ve said before our labor issues are going to get addressed in collective bargaining and that’s where they should get addressed.  I’ve never felt that this had any impact on our collective bargaining process.  What we have to do there is sit down at the table, address our issues and get it resolved.  We will have a labor agreement and it will be done through collective bargaining and not through the courts.”

But the courts can lead to collective bargaining.  After the failed strike of 1987, the NFLPA decertified, making it a collection of individual players.  Then, when the 28 (at the time) franchises tried to apply uniform rules to the individual players, a collection of them led by the late Reggie White sued the league for violating the antitrust laws.

The NFL’s silver-bullet defense came from the concept that the league isn’t 28 competing businesses but a single entity.  Before any of the key issues were resolved, the antitrust lawsuit was resolved — and the settlement agreement became the Collective Bargaining Agreement that still falls under the auspices of the Minnesota federal court where the case was first filed.

The outcome of American Needle takes the single entity defense off the table, necessarily giving the union more power and leverage in connection with any antitrust case that may be filed.  (If the NFL had won American Needle, the converse would be true.)  As a result, the NFLPA retains the ability to pursue once again the nuclear option of decertifying and suing under the antitrust laws.

But there’s still hope for the league in this regard.  Portions of the American Needle opinion suggest that an effort to preserve competitive balance via free agency rules and an incoming player draft would not run afoul of the law.  The problem for the league is that no easy answer would come; instead, the league’s position would be vindicated only after months if not years of litigation.

That’s precisely what happened a generation ago.  As football continued to be played, the league and the union duked it out in court, eventually settling their differences and negotiating a labor deal.  And that could be what happens this time around — football games will be played, and the parties will fight it out in court, eventually reaching either a judgment in favor of one side or the other or a negotiated resolution.

The primary difference in 2010 is that the rise of the Internet will result in much more attention being focused on the legal maneuverings.  But there’s still no reason to believe that football will go away for an extended period of time — if at all — after the CBA expires in March of next year.

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22 Responses to “American Needle case will have a huge impact on collective bargaining”
  1. Bob Nelson says: May 27, 2010 8:42 AM

    I still do not love NFL football as much as I did before the 1982 strike.
    That strike changed a lot of attitudes.

  2. lololnpnp says: May 27, 2010 8:48 AM

    The sports organization itself will always hold the upper hand in these scenarios (labor issues). Although fans of all sports have their favorite players, they will have no problem blaming them for anything wrong that happens. In the end all anyone ever sees is the greed of a 20 or 30 something yr old superstar who makes all kinds of money playing a sport they’ve loved their entire life. Public opinion rules!!!

  3. Munze Konza says: May 27, 2010 9:00 AM

    Can this mean no rookie salary scale?

  4. ItalianArmyGuy says: May 27, 2010 9:02 AM

    Goodell – Gary Bettman and Bud Selig just called. They are wondering why the f*ck you didn’t negotiate a contract with your players last year, before they could arm themselves with ammunition
    They are mocking you as the ultimate dumb-a$$, destructive commissioner, taking a flame-thrower to your own sport
    David Stern just chuckles while he drinks a Corona at the Bahamian casino, and prepares to put the fix in on the next Lakers-Suns game

  5. The Real Shuxion says: May 27, 2010 9:04 AM

    Why is it that every time I hear the term American Needle I think of steroids?
    Is it me?

  6. EverybodyGotAIDS says: May 27, 2010 9:05 AM

    I’d say just shut the league down for a couple years if you’re that serious about making a point. The shelf life of a player’s career is so short anyway that they’d cave pretty quickly.
    As a fan, that would suck, but if the union wants to play hardball, play hardball.

  7. axolotl says: May 27, 2010 9:21 AM

    One thing that I still do not understand: Why does this ruling strengthen the NFLPA position while at the same time MLB has antitrust exemption and the players also have the strongest union in professional sports?

  8. MrONE50 says: May 27, 2010 9:24 AM

    I know, I still do not love glassware, pitch and tar as much as I did beofre the 1619 Polish Craftsman strike.
    For some reason I just can’t let that one go.

  9. klungemonger says: May 27, 2010 9:25 AM

    How does somebody manage to use so many words without really saying anything?

  10. realitypolice says: May 27, 2010 9:57 AM

    MrONE50 says:
    May 27, 2010 9:24 AM
    I know, I still do not love glassware, pitch and tar as much as I did beofre the 1619 Polish Craftsman strike.
    For some reason I just can’t let that one go.
    ================================
    Before I started my comment, I had to give you props for that. That’s really good.
    Goodell can dismiss it all he wants- and in his position you would expect him to- but the decertification tool is a powerful one. The League may be able to retain the draft and free agency as “competitive balance” issues (although that is iffy), but there is no way salary cap or rookie wage scale rules could be applied to individual players.
    In light of the ruling that the teams are seperate entities, there is no way that the court would see attempts to limit player compensation as anythihg but straight up collusion, and a violation of anti-trust laws.

  11. 8man says: May 27, 2010 10:10 AM

    EverybodyGotAIDS says:
    May 27, 2010 9:05 AM
    I’d say just shut the league down for a couple years if you’re that serious about making a point. The shelf life of a player’s career is so short anyway that they’d cave pretty quickly.
    As a fan, that would suck, but if the union wants to play hardball, play hardball.
    ——————————————-
    Amen, brother!
    Enough of the tail wagging the dog. It already happens in baseball.

  12. AZ Red Bird says: May 27, 2010 10:34 AM

    Just wait till ONE owner sues to be an independant…the league will start to see itself come undone.
    Why? This case will allow any team to go rogue. Once done the players and teams will all unravel.
    Imagine a team that says no salary caps, no drug testing, no uniform policy….why not…once you’ve paid for the team…you can do as you please.

  13. Scourge says: May 27, 2010 10:59 AM

    Screw the NFPLA/NFL CBA.
    The American Needle outcome means that Electronic Arts would have to get 32 individual licenses from each team, a license from the NFL itself AND the NFLPA’s approval to keep Madden an exclusive NFL lciense!
    That means ANY video game company (Like Visual Concepts, who made the outstanding NFL 2K5) can go out and BID for licensing rights, which would pretty much KILL any exclusivity options for Electronic Arts.
    yay! We can finally KILL Madden as the only NFL video game in town!

  14. JDMP says: May 27, 2010 11:26 AM

    Cholesterol will kill Madden!

  15. QJ1984 says: May 27, 2010 11:59 AM

    @reality police
    Thats very true but the double edged sword that goes with that is that there would be no salary floor or minimum that teams have to pay. So, a guy like Kelly Washington who under current league rules cant be paid less than about 900k, can now be paid half that or less. The same goes for incoming late round draft picks and undrafted rookies. Right now the minimum they can be paid as a member of an active roster is around 200k. We might see those guys making less than practice squad players. The type of disperity in player salaries that could be created would kill any organized effort that the players have.
    The owners are not going to take those losses laying down. The average Joe’s and below of the league are the guys that are going to suffer most and its way more of them than there are big time players that can leverage their talent for a big time payday. Simply put, most players need the stability and protection that a CBA and union can offer.

  16. QJ1984 says: May 27, 2010 12:01 PM

    @Scrourge
    I hadnt thought about that but thank goodness.

  17. EverybodyGotAIDS says: May 27, 2010 12:16 PM

    QJ1984 says:
    May 27, 2010 11:59 AM
    @reality police
    Thats very true but the double edged sword that goes with that is that there would be no salary floor or minimum that teams have to pay. So, a guy like Kelly Washington who under current league rules cant be paid less than about 900k, can now be paid half that or less. The same goes for incoming late round draft picks and undrafted rookies. Right now the minimum they can be paid as a member of an active roster is around 200k. We might see those guys making less than practice squad players. The type of disperity in player salaries that could be created would kill any organized effort that the players have.
    The owners are not going to take those losses laying down. The average Joe’s and below of the league are the guys that are going to suffer most and its way more of them than there are big time players that can leverage their talent for a big time payday. Simply put, most players need the stability and protection that a CBA and union can offer.
    __________________
    Exactly. While having no CBA or union or salary cap may help the top guys, everybody in the union gets an equal vote (as far as I know), and the bulk of the guys in the league are helped by having that stability. If they elminate the salary cap (and floor, and vet mins, etc), you’ll get superstars being paid ridiculous amounts of money and the bottom guys getting squeezed down to a “mere” 100-150k (total BS estimate, but just to make a point).

  18. BossHog says: May 27, 2010 12:21 PM

    So do people think the union members are as strong or committed as those in the past? I would have to hedge they aren’t. Most of the kids coming out are looking for the quick dollar. Any impact to that cash stream will make them cave. I just don’t see a lot of these players willing to stand up on principal and for future players. They are more worried about themselves and right now.

  19. Tree13 says: May 27, 2010 12:27 PM

    Why is it that when a group of companies try to negotiate as a group, it’s called out as antitrust, and bad. When a group of people negotiate as a group, it’s called a union, which is pretty much a religion for some people.

  20. kingmj4891 says: May 27, 2010 1:04 PM

    Unions destroy everything they touch just look at the auto industry and the State of Michigan. Back in the 1930′s they were needed but btoday Unions = Greed. NFLPA = Greed. Every football fan needs to let the players know that they if Football is canceled at all because of Desmith and the Union that it will be taken out on them. Most Football players make more money in a season then I will make in 10 years. Stop the greed continue to get paid very good and allow the greatest sport ever to go on.

  21. Terry says: May 27, 2010 1:21 PM

    “The primary difference in 2010 is that the rise of the Internet will result in much more attention being focused on the legal maneuverings”.
    Florio- Love the hear HOW, in your simple mind, you believe more attention, via the internet, will have any bearing or make any difference in the negotiation process.

  22. edgy1957 says: May 27, 2010 5:54 PM

    AZ Red Bird says:
    Just wait till ONE owner sues to be an independant…the league will start to see itself come undone.
    *******************************
    Some people thought that Notre Dame’s deal would make them a juggernaut and yet, they haven’t been winning like they did before the deal and they haven’t won a national championship since Holtz was lisping on the sidelines, 3 years before they signed their TV deal.
    As Dan Synder has proven, you can’t buy a championship when you don’t make all the right moves. Certainly, that one rogue owner would be Jerry Jones but his ego would end up getting in the way just like it did after he got rid of Jimmy Johnson.

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