Sports Law

Salary Arbitration

* MLB CBA calls for final and binding arbitration.

Baseball's 50 Day Strike

* Management agreed to the same proposal that the union had offered 50 days before.

Incorporation Clause

* Modified the SPK by incorporating into the document other documents, most notably the collective bargaining agreement and the league's bylaws and constitution.

Griggas v. Clauson

* Liability found when a basketball player struck an unprovoked blow to an opponent whose back was turned.

Criminal liability of agents

* Can be prosecuted under RICO, larceny, and mail fraud.

Jani v. NFL Player Ret. Plan (4th Cir. 2006)

* Held that NFL players' pensions must pay the estate of Mike Webster in disability benefits for the brain damage he suffered during his football career.

City of Atlanta v. Merritt

* Held that a factual question existed as to whether the injured 8 year old appreciated the risk of watching game in unscreened, high-risk picnic area adjacent to right field line.

Mogabgab v. Orleans Parrish

* Liability was found when a coach failed to summon medical aid in a timely fashion when player showed symptoms of heat stroke. * Coaches too can be held personally liable.

Contraction

* A club can rightfully terminate a K for material breach. * The ability to trade players from team to team as if they were chattel has been prerogative of management. * Injunctions are allowed b/c specific performance is unacceptable. * Earlier forms of player Ks allowed the team to simply terminate the K after a brief period following notice. * The question of whether the athlete exhibits sufficient ability is determined solely by the head coach or manager.

Lawson v. Salt Lake Trappers

* A minor spectator who was struck by a foul ball also assumed risk of injury. * Majority Rule -- duty of care to spectators is duty to screen most dangerous parts of the stadium and to provide screen seats to as many spectators as may reasonably be expected to request them on an ordinary occasion.

Nabozny v. Barnhill

* A participant can avoid the defenses of assumption of risk and contributive negligence by basing her cause of action on defendant's violation of a safety rule. * Barnhill violated a safety rule that prohibits contact w/ goal keeper, when the goal keeper is holding the ball in the penalty area. * Key to recovery in this case and Bourque is that the cause of the injury must be a result of wanton misconduct.

Slander per se

* Accusations regarding crimes * Loathsome diseases * Adverse effect on trade, business, or profession * Unchastity to a woman.

Kansas City Royals v. MLBPA (8th Cir. 1976)

* Affirms the arbitrator's decision that signaled the demise of the reserve clause and allowed the possibility of free agency in prof. baseball.

Canada & Ice Hockey

* All players assume risks of sport but no athlete should be presumed to accept malicious, unprovoked or overly violent attack. * Reasonable to infer he does not have malicious motive if playing according to rules of the game.

Piazza v. MLB (E.D. Pa. 1993)

* Alleged that MLB frustrated their efforts to purchase the San Francisco Giants and relocated it to Tampa Bay. * Federal Baseball and Flood v. Kuhn is inapplicable here b/c it's limited to the reserve system.

Hackburt v. Cincinannti Bengals

* Allowed for recovery for injuries sustained in the course of a football game if they result from wanton misconduct and aren't directly related to the flow of the game.

Flood v. Kuhn (U.S. 1972)

* Allowed the reserve clause to survive on a strict stare decisis basis. * Professional baseball is a business that is engaged in interstate commerce, but its reserve system enjoys exemption from federal antitrust laws.

Alabama Football Inc v. Stabler (Ala. 1975)

* Allows the athlete to keep the signing bonus even though the team is no longer in existence. * Court inferred the players' willingness to play by allowing the team to use their names and likeness for publicity purposes.

San Francisco Seals v. NHL (C.D. Cal. 1974)

* An individual hockey franchise wanted to move from San Francisco to Vancouver. * Court held that the team was not competing economically w/ the league and other teams. * League's relocation rules did not restrain trade w/i the relevant market. * Seals did not have standing to sue b/c the team was not w/i the target area w/ respect to the claimed conspiracy.

NLRB Jurisdiction

* Applies to all employees whose employer's business affects commerce * If the the effect on commerce is minimal, then the NLRB has the power to decline to intervene. * Establishing procedure 1. Union requests recognition by presenting signed authorization card to employer; 2. File petition for election and show that 30% of members seek election; 3. NLRB honors petition and sets bargaining unit; 4. Vote for collective bargaining unit representative by 50% +1; and 5. If any decision affects wages, hours, or conditions of employment, management loses ability to govern those relations unilaterally.

No-Cut Clauses

* Assures the player that he will not be cut during the life of the K. * Cunningham model protects the player from a cut based on a lack of skill but not from one based on poor physical or mental condition, inability to perform as result of off-field injuries, or suspension without pay for disciplinary reasons. * Standard NFL model is comparable to Cunningham model but more specific to the necessity of maintaining a superior physical condition. * Hudson model is "salary payable in any event" but does not waive the team's right to suspend the player or protect him if he fails to show a good-faith effort.

Federal Baseball

* Baseball does not affect interstate commerce * The reserve clause is not under antitrust laws.

Wood v. NBA (2d Cir. 1987)

* Because agreements for entry draft process and salary cap were result of federally mandated collective bargaining and in light of the unique basketball economic imperative, Wood cannot challenge on antitrust grounds.

Bourque v. Duplechin

* Bourque filed suit to recover damages for personal injuries received in a softball game against defendant, a member of the opposing team. * Participant does not assume risk of injury from fellow players acting in unexpected or unsportsmanlike way w/ reckless lack of concern for others participating.

Woy v. Turner

* Bucky Woy, an agent, became a limited public figure when he thrust himself into the forefront of a public controversy during a K dispute by using the media, via press conference, to help make his point.

Coach's Failure to Supervise

* Coach is not negligent if she has fulfilled her duty to exercise reasonable care for athletes under her supervision. * This is satisfied by providing proper instructions or explaining how to play and also by showing due concern that the athlete is in proper condition. * Only liable if she fails to exercise reasonable care for the protection of the players and the specific injury involved was a result of that failure.

Metro. Sports Facilities Comm'n v. Minn. Twin P'Ship (Minn. Ct. App. 2002)

* Comm'n successfully sought an injunction. * Emphasizes the fact that in a use agreement btwn a govt sports authority and a prof. sports team, money damages cannot fully compensate the non-breaching party when the agreement provided that the benefit of the bargain is the team's promise to play its home games at the publicly funded and operated stadium.

Kleinknecht v. Gettysburg College (3d Cir. 1993)

* Court found that the college owned a duty to a deceased lacrosse player based on the relationship between the athlete and the school and the foreseeability of the injury. * Had a duty to provide prompt and adequate emergency services while engaged in a school-sponsored activity for which he has been recruited.

Minnesota Muskies v. Hudson (M.D.N.C. 1969)

* Court held that the Muskies soiled its hands to such an extent that the injunctive relief should be denied. * The Muskies contacted Hudson while he was still actively engaged in another team.

Conn. Pro'f Sports Corp. v. Heyman (S.D. N.Y. 1967)

* Court held that the terms and provisions of this K are too harsh and one-sided to permit equitable enforcement. * The primary reason for denying relief is the fact that they seek to enforce a K that purports to bind Heyman for a one-year period and at the same time permit them to terminate at will.

White v. NFL (Ashlie Lelie) (2007)

* Court was asked to consider whether the Bronco's option for a sixth year was valid. * Stipulation and Settlement Agreement (SSA) states no forfeitures permitted for option bonuses for years already performed. * Lelie won and the option bonus is protected from forfeiture.

Anti-Red Shirting Rules

* Designed to minimize the effect of holding back students academically so they can mature physically. * Classified as four-year rules, eight-semester rules, or age rules.

Grievance Arbitration

* Each SPK contains a standard grievance arbitration clause. * The clause stipulates that disputes be grievance or K disputes, but clauses can be formed to deal w/ other concerns. * Typical grievance arbitration procedure provides an orderly and expeditious procedure for handling and solving disputes. * Most sports arbitrations do not include benefit plan, union dues check-off, and complaints that involve the integrity of the sport.

Detroit Football Co. v. Robinson (E.D. La. 1960)

* Early example of how Ks were interpreted b/f the NFL changed its SPK to reflect lessened importance to the commissioner's signature approving the K. * Detroit did not "sign up" Robinson b/c signature is condition precedent to existence of K.

Tillman v. New Orleans Saints (La. Ct. App. 4th Cir. 1972)

* Emphasizes importance of decisions made about a player's fitness to play by both the team physician and the coach. * Tillman was injured during a preseason drill and his damaged knee was operated on and repaired. After recuperation, he was instructed to return to camp and begin an exercise program and was cleared by the team physician to resume full duty. * Tillman was later released under para. 6 on grounds that he did not possess the requisite skills to make the team. * Court gave deference to the team's physician's finding of fitness. * Tillman lost.

Detroit Lions v. Argovitz (E.D. Mich. 1984)

* Emphasizes the importance of fully explaining any potential conflicts of interest btwn the agent and athlete. * The agent was also a significant part in starting up a new football team and never disclosed relationship to the player. * Court held that the dealings were in agent's self interest and rendered K invalid.

Curt Flood Act of 1998

* Employment of major league baseball players is subject to antitrust laws to the same extent as any other professional sports business. * Does not create, permit or imply a cause of action by which to challenge under antitrust laws.

White v. NFL (Michael Vick) (8th Cir. 2009)

* Even though he was suspended for dog fighting, he can still keep the roster bonus. * SSA precludes the forfeiture of the roster bonus having already been earned.

Privilege of fair comment

* Everyone has a right to comment on matters of public interest if its done fairly and w/ honest purpose.

Non-statutory labor exemption

* Exemption applies when the restraint on trade affects only the parties to the agreement and the restraint concerns a mandatory subject of collective bargaining and where the provision in question is the product of bona fide arms-length bargaining. * Allows for union-management clauses to receive antitrust protection if they are the result of bona fide, arm's length negotiation on mandatory subjectives of collective bargaining. * Continues after expiration of CBA and after impasse.

Brahatcek v. Millard School District (Neb. 1979)

* Failure to exercise reasonable care for the protection of the participant was in the nature of a failure to properly supervise 9th grade golf instruction.

Toolson v. NY Yankees

* Follows Federal Baseball in saying that the business of baseball is not interstate commerce so the reserve clause is legal. * Emphasis on congressional silence.

SPARTA

* Forbids agents from giving false or misleading information to a student-athlete * Making false or misleading promises or misrepresentations * Providing anything of value to the student or any individual associated w/ the student, including family and friends * Failing to disclose in writing that the student may lose eligibility to compete if she signs a K. * Predating or postdating Ks

NFLPA Contract Advisor Program

* Formulated in accordance w/ collective bargaining agreement. * Provides a list of vetted prospective advisors from which a player must choose from.

Hall v. University of Minnesota

* Found a limited property right for a collegiate athlete to continue his athletic eligibility for another year on the basis that the extra year would determine his status as regards his potential as a drafted player in prof basketball.

In Re Am. League of Pro'f Baseball Club (1969)

* Held that the effect on interstate commerce of a labor dispute involving prof. baseball is not so insubstantial as to require withholding assertion of Board's jurisdiction * Umpires aren't supervisors so they aren't under the collective bargaining unit

Everett v. Bucky Warren Inc.

* Hockey coach's decision to supply helmets w/ design defect, when other, safer helmets were available, was sufficient to create a product liability claim. * Particular factors that will determine if a product design is reasonably safe 1. The gravity of the danger posed by design defect; 2. The likelihood that danger will occur; 3. The mechanical feasibility of a safer design; 4. The cost of an improved design; and 5. The adverse consequences that might result from an alternative.

Powell v. NFL (8th Cir. 1989)

* Holds that the non-statutory labor exemption continues even after the CBA expires and the parties have reached impasse in their negotiation.

Zinn v. Parrish (7th CIr. 1981)

* Iconic case that stands for the principle that a good-faith effort overall in the negotiations of the K is called for when an agent represents an athlete. * Agent sought to recover fees due to him after being fired. * Court said the agent is only limited to use of reasonable effort subject to an implied promise of good faith efforts. * Zinn is agent

Termination

* If termination is not justified, the termination of an athlete's employment K is a breach of K. * Employer can terminate if the athlete is physically unable to perform. * If a team terminates an employee on the basis of an injury, such an action is usually covered by a provision in the CBA. * The club can rightfully terminate a player's K if the athlete is out of shape, lacks skill, defies club and league rules, or for a material breach of SPK. * Each SPK contains a clause that allows the team to trade players at will, unless the player has a no-trade clause. * Ks cannot be terminated for illegal purposes. * Alleged false representations regarding the effective date of a K and promise that the matter would be kept secret was insufficient to rescind the K on fraud in the inducement.

Heysel Disaster

* Impetus of England's war on football holliganism. * This is where 38 people were killed in a soccer riot when fans crushed a fence and caused a mass exit trampling. * Legal reaction was swift - English clubs were banned for 5 years.

Rozelle Rule

* In NFL, in order for a club to acquire a free agent, they must compensate the former club in the form of money, players, or valuable draft picks. * Deterred teams from signing free agents. * A club would only sign free agents if it was able to reach an agreement with the former club or it was willing to risk the commissioner's justice in his sole discretion.

Krueger v. San Francisco 49ers

* Injured football player successfully brought an action for fraudulent concealment against employer for actions of team doctor who "patched him up" year after year while continuing to play w/o revealing the true extent of his injuries.

Benejam v. Detroit Tigers

* Injured minor was hit by a baseball bat fragment. * Owner isn't liable for injuries to spectators that result from projectiles leaving the filed during play if safety screening has been provided behind home plate and there are a sufficient number of protected seats to meet ordinary demand. * No duty to warn spectators at a baseball game of the well-known possibility that a bat or ball might leave the field.

Worker's Compensation

* Injured person must be an employee who was injured by an accident while engaged in a job-related function. * Covered in college sports - If the continued receipt of a job, free meals, or money is contingent upon continued sports participation. * Employer-based sports injury - If employer brought sporting activity w/i course of employment. * Indices that indicate that activity is w/i course of employment - champion trophy displayed, equipment paid for by employer, company logo on uniforms, copies of schedules passed out.

Jones v. Three River Management Corp.

* Injured spectator was struck while standing in the interior walkway of a stadium concourse. * Held Schentzel no-duty rule applies only to common, frequent, and expected risks and in no way affects the duty of a sports facility to protect patrons from foreseeably dangerous conditions not inherent in the amusement activity.

Bloom v. NCAA (Colo. App. 2004)

* Involved an All-American football player who was also an Olympic skier. * Bloom sought to enjoin the NCAA from restricting him from engaging in paid entertainment endorsements associated with his skiing career.

LA Memorial Coliseum Comm v. NFL (9th Cir. 1983)

* Involves antitrust litigation against a NFL rule that stipulated that three-quarters of all NFL teams must approve the relocation of a franchise into the home territory of another team. * The rule was held invalid b/c the NFL was not a single entity and the rule was an unreasonable restraint of trade. * Court affirmed treble damages in favor of Coliseum but vacated the Raiders' antitrust damage recovery.

SRK

* It establishes the rights and responsibilities btwn player and agent. * It only calls fo the good faith effort on part of the agent. * Usually provided by the union. * Four essential clauses - notice in writing of potential conflicts, negotiation in good-faith clause, arbitration provision, and a provision that stipulates which state's law will govern if interpretation of K becomes necessary.

Ashcroft v. Calder Race Course

* Jockey was injured when his horse veered across the race course toward an exit gap. * Express assumption of risk waives only risks inherent in the sport itself.

Philadelphia Ball Club v. Lajoie (Pa. 1902)

* Lajoie is a clear example of someone with juice, which is the ability to write your own ticket. * K prohibited him from playing baseball w/ any other club other than his current one. (Reserve Cl.) * Injunction was issued b/c services were of unique character, which rendered them of peculiar value to the club.

Recreational Use Statutes

* Landowners who allow free recreational use of their property do not have a duty to keep their premises in a safe condition or duty to warn of dangerous conditions.

Averill v. Luttrell

* Liability found when a catcher deliberately and w/o warning struck a batter.

Salary Cap

* Limits the total amount that each team can annually pay to its players

NCAA v. Tarkanian (U.S. 1988)

* NCAA's interactions regarding student eligibility not viewed as state action. * Narrowly held that NCAA did not assume the role of the state when it directed UNLV to initiate particular actions against the coach.

Rule of repose

* Once you attain public figure status you can slip back into the status of a private person.

Milkovich v. Lorain Journal Co.

* Opinions are not capable of defamatory meaning. * Sports commentary that carries with it "mixed opinion" is capable of implying an underlying defamatory fact and therefore is actionable.

Lockouts

* Owners can not allow the athletes to report to training camp. * This is used to economically coerce the players to return to the table or to reignite the player's desire to continue good-faith bargaining. * Lockouts are legal if good-faith negotiations continue and the lockout occurs only after impasse.

Baseball Spectators

* Owners of baseball stadiums have a duty to provide screened seats for those spectators who would reasonably request them. * Owners don't have a duty to inform the spectators of the availability of the protected seats since their existence is obvious.

Phillips v. Selig (2008)

* Phillips made a bad call by urging members of the umpires association to stage mass resignations. * The new union successively filed a petition with the NLRB to decertify the association. * All actions after mass quitting was w/i NLRA * Phillips failed to meet his burden that defendants had the specific intent to harm him. * Decertification was w/i power under NLRB

Rule of Reason Analysis

* Plaintiff must show that any legitimate objectives could be achieved in a less restrictive manner. * Used for "competitive cohesion" model, like prof. sports.

Schentzel v. Philly Nat'l League Club

* Plaintiffs traveled to Philly to watch doubleheader baseball game. Mrs. Schentzel, although aware of the game of baseball, was attending her first game, and was struck by a foul ball. * Held that such injuries are a matter of such common everyday practical knowledge as to be subject to judicial notice.

Price v. Univ. of Ala. (N.D. Ala. 2003)

* Price was fired as Alabama's head football coach b/c of inappropriate behavior at a golf tournament. * Price lost b/c he did not sign a contract and did not have a property interest in the position.

Salerno v. Am. League of Pro'f Baseball Clubs (2d Cir. 1970)

* Professional baseball is not subject to antitrust laws.

Keller v. Mols

* Recovery was denied for a minor who was injured while playing goalie in a floor hockey game. * Participation in contact sports precluded recovery in negligence b/c players were organized and coached. * Shooting plastic pucks in an attempt to score was neither willful nor wanton conduct.

Functions of agents

* Represent their interests * Negotiation of a personal services K with a prof. sports team. * Tax and financial investments * Public relations * List on Pg. 113

Atawater v. NFLPA (11th Cir. 2010)

* Retired NFL player sues the estate of his former certified financial planner for losing his money in a Ponzi scheme. * NFLPA won b/c they had no responsibility for the merits of the advisor.

Toscano v. PGA Tour (2002)

* Shows how the antitrust laws might be unsuccessfully used in an attempt to challenge the eligibility rules of a prof. golf association.

NCAA v. Board of Regents (U.S. 1984)

* The Supreme Court declared that the NCAA's football TV plan was unlawful under a rule of reason analysis. * NCAA's TV package restricted the total number of football games an NCAA member could televise and also stopped members from selling TV rights except in accordance with NCAA plans.

Johnson v. Green Bay Packers (Wis. 1956)

* The court found for player Johnson, interpreting the term "season K" by looking to sport's customs and its typical business usage of the term to supply meaning.

Uniform Athlete Agents Act

* The impetus of it is to stop unscrupulous individuals who are willing to use any means to obtain an agency K. * Agency K must contain in close proximity to signature a conspicuous notice saying if you sign you will lose college eligibility. * The knowing commission of any act prohibited by sec. 14 by the agent is a misdemeanor felony and revocation of agent license. * The educational institution has a right of action against the agent for damages caused by violation of the Act. * There is an administrative penalty for violation of the Act. * If any provision of the Act is held invalid, the invalidity does not affect other provisions.

USFL v. NFL (2d Cir. 1988)

* The jury decided in favor of the USFL, finding that the NFL possessed monopoly power and was liable for damages to the USFL for willfully maintaining the power. * Jury awarded $1. * Held that a prevailing antitrust plaintiff is entitled to an award of attorney's fees.

SPK

* The key link btwn players and their teams in prof. sports. * The only employment agreement that is allowed in prof. sports. * It is a contract of adhesion that has been shaped and re-shaped by court challenges and collective bargaining. * It is an employment K that specifies the player's rights and states that this player, no matter how average she appears to be, possesses unique skills. * B/c each player is unique, the SPK includes a clause that gives the team the equitable ability to obtain injunctive relief so as to thwart the player from breaching the K and jumping to another team. (Lajoie) * Calls for annual physical examinations.

Signing Bonuses

* The most sought after goal in the K negotiation process. * It is the upfront money in that all the player has to do, at a minimum, is appear in training camp ready to play. * The player must at least try to perform in order to secure bonus. * It is not considered salary b/c the athlete receives it for the mere act of signing. * In the NFL, the bonus can be prorated by mutual agreement if it's a long-term K. * Roster Bonus - payable for making the team.

Financial planning

* The tenet from prospective of the agent is the financial stability of the player at age 55. * Three steps - evaluate assets, outline objectives, and implement plan to achieve objectives. * Three fundamental financial principles - preservation of capital, tax reduction, and liquidity. * Must adopt strategies to maximize the appreciation of investment portfolio. * Dilemma in investing - money is limited so it would be wise to be conservative, but savings may be insufficient to stretch to retirement unless the process is more risky. * Tax strategy - Deferred compensation plans, tax-sheltered investments, incorporation, forum shopping.

Brady v. NFL (8th Cir. 2011)

* This case describes the legal machinations that emanated from the NFL's decision to lock out the players in March 2011. * Plaintiffs sought a declaratory judgment, injunctive relief, and damages, alleging antitrust violations, breach of K, and tort claims based on defendant's lockout of the players. * Held for the NFL b/c the injunction was not w/i Norris-LaGuardia Act.

Obligation of good faith

* This is a low standard * Agents and athletes have a fiduciary relationship. * Agents are required to exercise the utmost care, good faith, honesty and loyalty in all of their relations with the athlete. * Efforts don't have to be successful. * Consult and consent - Agent must make full disclosure of possible conflicting commitments and must receive prior consent from athlete if potential conflicting interests exist.

Clarett v. NFL (2d 2004)

* This was an attempt by a college football player to enter the NFL draft regardless of the NFL's eligibility rule that demanded that , to be draft eligible, you must be at least three football seasons removed from high school. * Eligibility rules were mandatory bargaining subjects and subject to the exemption. * Essentially holds that labor law trumps antitrust law.

Regulation of agents

* Two major regulatory schemes - public (usually state regulation) and private (union certification program). * Individual unions are empowered to penalize agents w/ decertification and are included within the appropriate bargaining unit (thus protected from anti-trust attack).

American Needle Inc v. NFL (U.S. 2010)

* U.S. Supreme Court establishes the principle that the NFL, at least for marketing/licensing, is a single entity for antitrust purposes. * The sole question is whether the alleged activity by the NFL

Strikes

* Unions are guaranteed the right to engage in strikes and other concerted activities * After impasse, the union can legally strike. * Strike is defined as the failure to report to training camp or to the playing field. * The union must still bargain in good faith even while the players are striking. * Can lose its rights to strike if 1. it agrees to a no-strike clause in the CBA 2. it engages in an activity that has an unlawful objective; or 3. it uses improper means such as rendering inoperable company machinery.

William v. Cox Enterprises

* Upheld waiver in a 10,000 meter road race in which a participant suffered injuries as a result of heat exhaustion

Per Se Analysis

* Used for restraints that have a predictable effect on the market.

Eligibility as a Privilege

* Usually only has the privilege to participate in sports.

Assumption of Risk

* Voluntary assumption, express or implied, of a known or appreciated risk. * Assumes ordinary risks of the game. * Complete bar of recovery.

Pasquel v. Owen (8th Cir. 1950)

* When breach occurs after partial performance of K, it's useful to look at how the parties actually functioned under K. * K uses the term "player-manager" and does not indicate which time he would be a manager or player. * Owen waived breach of K when he performed as manager and player w/o complaint.

Carabba v. Anacortes School District

* Wrestling referee was held to be negligent for not properly supervising a match. * Referee liability is the duty to properly supervise the athletic contest and obligation to enforce safety rules.

Sherman Act

* §1 applies only to concerted actions that restrain trade. * §2 applies to concerted and independent actions but only if they threaten to monopolize or monopolize a category that is narrower than restraint of trade.

Antitrust Exemptions

1. Baseball - developed via case law and refined by Curt Flood Act of 1998. 2. Labor - from Clayton Act and Norris-LaGuardia Act. 3. Professional Football - NFL and TV networks allowed to pool and sell a unitary TV package; Allows for blackouts of non-local games telecast into home territories when home team is playing; Allows blackout of home games in home territory; Allowed NFL and AFL merger. 4. Non-statutory labor - based on policy that favors collective bargaining.