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National Football League Restrictions on Competitive Bidding for Players' Services

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National Football League Restrictions on Competitive Bidding for Players' Services Buffalo Law Review Volume 24 Number 3 Article 8 4-1-1975 National Football League Restrictions on Competitive Bidding for Players' Services Bernard B. Kornmehl Follow this and additional works at: https://digitalcommons.law.buffalo.edu/buffalolawreview Part of the Antitrust and Trade Regulation Commons, and the Entertainment, Arts, and Sports Law Commons Recommended Citation Bernard B. Kornmehl, National Football League Restrictions on Competitive Bidding for Players' Services, 24 Buff. L. Rev. 613 (1975). Available at: https://digitalcommons.law.buffalo.edu/buffalolawreview/vol24/iss3/8 This Comment is brought to you for free and open access by the Law Journals at Digital Commons @ University at Buffalo School of Law. It has been accepted for inclusion in Buffalo Law Review by an authorized editor of Digital Commons @ University at Buffalo School of Law. For more information, please contact [email protected]. NATIONAL FOOTBALL LEAGUE RESTRICTIONS ON COMPETITIVE BIDDING FOR PLAYERS' SERVICES While Joe- Kapp attended the University of California and was a prospective professional football player, the Washington Redskins "drafted" him pursuant to the "draft rule."1 The Redskins did not make a satisfactory offer to Kapp, but kept him on their reserve list for seven years (until April, 1966) during which time other National Football League (hereinafter referred to as NFL) clubs were barred from negotiating with him. Denied an opportunity to play profes- sional football in the United States, Joe Kapp was forced to go to Canada and play in the Canadian Football League. After an abortive attempt to play for the Houston Oilers,2 Kapp obtained clearance from the NFL to play for the Minnesota Vikings when the latter paid his Canadian team $50,000 for his release. Kapp played for the Vikings during 1967 and 1968; the Vikings then exercised their "option clause" for a third year, 1969,3 during which Kapp contributed con- siderably to the Vikings NFL championship and participation in the Super Bowl. Kapp declined to sign a new contract with the Vikings when they refused to increase his salary. Two other clubs, the Phila- delphia Eagles and Houston Oilers, requiring a quarterback of Kapp's ability, expressed interest, but neither followed with an offer. Kapp maintains this was because the teams were restrained by the "Rozelle 1. The National Football League Constitution and Bylaws provide: § 14.3(A) At each Selection Meeting each club participating therein, shall select players of its own choice .... "14.5 The selecting club shall have the exclusive right to negotiate for the services of each player selected by it in the Selection Meeting. Selected players shall be placed on a Reserve List of that club. Brief for Plaintiff at 15-16, Kapp v. National Football League, Civil No. 72-537 (N.D. Cal., Dec. 20, 1974) (hereinafter cited as Brief). 2. On February 10, 1967, Joe Kapp signed a contract to play for the Houston Oilers. However, on April 12, 1967, after the NFL and American Football League had agreed to merge, the Kapp-Oiler contract was declared invalid by Commissioner Ro- zelle and by the then President of the American Football League, pursuant to an understanding with the Canadian Football League that players would not be permitted to switch from one league to another, if already under contract. 3. Section 10 of the "Standard Player Contract" gives the team owner a uni- lateral option to renew the contract for a further term of one year at a reduced rate of compensation, that is, for 90 percent of the sum paid to the player for the previous year. Brief 22. BUFFALO LAW REVIEW rule."4 Eventually, the New England Patriots, who were desperately in need of a quarterback, sought assurances from the Minnesota Vikings concerning what consideration would be required as a "ransom" in the event the Patriots employed Kapp. An agreement was worked out,5 and Kapp signed a contract to play for the Patriots for the re- mainder of the 1970 season, for all of 1971 and 1972, at a total com- pensation of $600,000. In January, 1971, after Kapp had played 11 games for his new team, the Patriots, acting pursuant to the NFL Con- stitution and Bylaws, 6 and at the direction of the Commissioner, sent Kapp a "Standard Player Contract. ' 1 He refused to sign. This refusal 4. Section 12.1 (H) of the NFL Constitution and Bylaws provide: Whenever a player, becoming a free agent in such a manner, thereafter signed a contract with a different club in the League, then, unless mutually satisfac- tory arrangements have been concluded between the two League clubs, the Commissioner may name and then award to the former club one or more players, from the Active, Reserve, or Selection list (including future selection choices) of the acquiring club as the Commissioner in his sole discretion deems fair and equitable; any such decision by the Commissioner shall be final and conclusive. Id. at 23. 5. The Patriots agreed to surrender to the Vikings, pursuant to the Rozelle rule, their first round draft choice for 1972 and, in addition, their first draft selection of 1967. 6. The NFL Constitution and Bylaws provide: § 15.1 All contracts between clubs and players shall . be in the form adopted by the member clubs of the league; such contracts shall be known as the "Standard Player Contract." . [A] club may delete portions of or otherwise amend the Standard Players Contract subject to the right of the Commissioner to disapprove the same, as provided by Section 15.4 hereof. § 15.4 The Commissioner shall have the power to disapprove any contract between a player and a club executive in violation of or contrary to the Con- stitution or By-laws of the League, or if either Contracting Party is or has been guilty of conduct detrimental to the League or to professional football. Brief 19. 7. The Standard Player Contract provides: § 4. The Player agrees at all times to comply with and be bound by: the Constitution and By-Laws, Rules and Regulations of the League, of the Club, and the decisions of the Commissioner of the League . which shall be final, conclusive and unappealable. The enumerated Constitution, By-Laws, Rules and Regulations are intended to include the present Constitution, By- Laws, Rules and Regulations as well as all amendments thereto, all of which are by reference incorporated herein. If the Player fails to comply with said Constitution, By-Laws, Rules and Regulations, the Club shall have the right to terminate this contract . or to take such other action as may be speci- fied in said Constitution, By-Laws, Rules and Regulations, or as may be di- rected by the Commissioner. The Player agrees to submit himself to the dis- cipline of the League and of the Club, for any violation of said Constitution, By-Laws, Rules and Regulations, subject, however, to the right to a hearing by the Commissioner. All matters in dispute between the Player and the Club shall be referred to the Commissioner and his decision shall be accepted as ANTITRUST LAW was based on the fact that the Standard Player Contract provides in part that the player will be bound by the constitution, bylaws, rules and regulations of the league, subject only to the rights of a hearing by the Commissioner whose decision is final and unappealable. By sign- ing this agreement, Kapp would have bound himself to all the rules that previously had been used against him to restrict competition for his services, that is, the draft rule, tampering rule,8 option clause, final, complete, conclusive, binding and unappealable, by the Player and by the Club. The Player, if involved or affected in any manner whatsoever by a decision of the Commissioner, whether the decision results from a dispute between the Player and the Club or otherwise, hereby releases and discharges the Commissioner, the League, each Club in the League, each Director, Officer, Stockholder, Owner or Partner of any Club in the League, each employee, agent, official or representative of the League or of any Club in the League, jointly and severally, individually and in their official capacities, of and from any and all claims, demands, damages, suits, actions and causes of action whatsoever, in law or in equity, arising out of or in connection with any decision of the Commissioner, except to the extent of awards made by the Commissioner to the Player. The Player hereby acknowledges that he has read the present said Constitution, By-Laws, Rules and Regulations, and that he understands their meaning. "6 [Ilf, in the opinion of the Head Coach, Player does not maintain himself in such excellent physical condition or fails at any time during the football seasons included in the terms of this contract to demonstrate suffi- cient skill and capacity to play professional football of the caliber required by the League, or by the Club, or if in the opinion of the Head Coach the Player's work or conduct in the performance of this contract is unsatisfactory as compared with the work and conduct of other members of the Club's squad of players, the Club shall have the right to terminate this contract. § 11. Player acknowledges the right and power of the Commissioner (a) to fine and suspend, (b) to fine and suspend for life or indefinitely, and/or (c) to cancel the contract of, any player . who is guilty of any conduct detrimental to the welfare of the League or of professional football. The Player, if involved or affected in any manner whatsoever by a decision of the Commissioner in any of the aforesaid cases, hereby releases and discharges the Commissioner, the League, each Director, Officer, Stockholder, Owner, Partner, employee, agent, official or representative of any Club in the League, jointly and severally, individually and in their official capacities, of and from any and all claims, demands, damages, suits, actions, and causes of action whatsoever, in law or in equity, arising out of or in connection with any such decision of the Commissioner.
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