NFL Owners Testify in Arbitration Grievance Over Quarterback Contracts

NFL owners, including Falcons owner Arthur Blank, testified in an arbitration grievance between the NFL and the National Football League Players Association over quarterback contracts. The grievance alleged that NFL owners colluded to deny certain players guaranteed compensation in violation of the collective bargaining agreement. The NFLPA claimed that the NFL encouraged teams not to guarantee quarterback contracts after the Browns signed Deshaun Watson to a fully guaranteed deal.

The 10-day hearing in July and August 2024 resulted in Arbitrator Christopher F. Droney concluding that the NFL Management Council encouraged the 32 member clubs to reduce guarantees in future contracts with players at the March 2022 annual meeting of the club owners. However, the arbitrator found that the clubs did not join in a collusive agreement.

Key Takeaways:

• Falcons owner Arthur Blank testified in the arbitration grievance, stating that the NFL's salary cap system is a closed-loop system where every team has the same cap and must operate within it.
• Blank discussed the Watson contract, saying that committing $230 million to a quarterback is a huge commitment, and whether other teams would have made the same deal is uncertain.
• The NFL Management Council presented a slideshow advocating against future guaranteed contracts, but Blank testified that he did not reduce guarantees for the Falcons due to the presentation.
• The Falcons were found guilty of tampering in the signing of quarterback Kirk Cousins, with Blank citing the team's desire to keep their own quarterback and salary cap room flexibility as reasons for not pursuing Lamar Jackson.
• Other owners who testified in the arbitration hearing included John Mara (New York Giants), Jimmy Haslam (Cleveland Browns), Michael Bidwill (Arizona Cardinals), Greg Penner (Denver Broncos), Steve Bisciotti (Baltimore Ravens), Robert Kraft (New England Patriots), and Dean Spanos (Los Angeles Chargers).

Statistics:

• $180 million: The value of the four-year deal for quarterback Kirk Cousins
• $230 million: The value of the five-year deal for quarterback Deshaun Watson
• $80 million: The amount by which Watson's contract exceeded the highest other guaranteed contract in the NFL's 102-year history
• 10 days: The duration of the arbitration hearing in July and August 2024
• 3: The number of quarterbacks (Watson, Lamar Jackson, and Kyler Murray) named in the initial arbitration demand
• 32: The number of member clubs in the NFL
• 102: The number of years in the NFL's history, with Watson's contract being the highest guaranteed deal in that time.

Sources:

• Meadowlark Media's Pablo Torre's report
• Court documents from the arbitration hearing