Federal ruling could freeze NFL's TV money amid CBA talks

Federal ruling could freeze NFL's TV money amid CBA talks

A federal ruling on the NFL's acquisition of TV money could have a major impact on the ongoing negotiations between the league and union for a new CBA with the current one set to expire Thursday night.

U.S. District Judge David Doty�ruled in favor of the players Tuesday, overturning a previous decision by a special master, agreeing the league was capitalizing on billions of dollars as potential lockout insurance after the union had argued that the NFL had failed to maximize TV revenue in previous seasons (which is shared with players) in order to create a $4 billion nest egg in 2011 in the event of a protracted work stoppage when it restructured broadcast contracts over the past two years.

"The record shows that the NFL undertook contract renegotiations to advance its own interests and harm the interests of the players," wrote Doty in his ruling.

"The players rely on the NFL to negotiate these contracts on behalf of both the NFL's own interests and the interests of the players," added the judge. "The NFL sought to renegotiate broadcast contracts to ensure revenue for itself in the event of a lockout."

The ruling also noted, "The NFL negotiated over $4 billion in rights fees in 2011 if it locks out the players." Under the agreements, networks would get a refund if games were lost, but Doty's ruling also noted the league would have no obligation to repay $421 million, one reason NFLPA director DeMaurice Smith has consistently referred to the bounty as a "war chest."

Doty opined that the league "consistently characterized gaining control over labor as a short-term objective and maximizing revenue as a long-term objective ... advancing its negotiating position at the expense of using best efforts to maximize total revenues for the joint benefit of the NFL and the Players."

The judge also said at least three networks expressed "some degree of resistance to the lockout payments"; that the NFL "characterized network opposition to lockout provisions to be a deal breaker"; and that DirecTV "would have considered paying more in 2009-2010 'to have (the work-stoppage provision) go away.'"

It was not immediately known if the TV funds would be put in escrow and/or if the players would be awarded monetary damages. A hearing to address those matters has not been scheduled.

The NFLPA said in a statement: "This ruling means there is irrefutable evidence that owners had a premeditated plan to lockout players and fans for more than two years. The players want to play football. That is the only goal we are focused on."

NFL spokesman Greg Aiello�tweeted: "As we have frequently said, our clubs are prepared for any contingency, this decision included ... Today's ruling will have no effect on our efforts to negotiate a new, balanced labor agreement."

Sports attorney David Cornwell, a former candidate for executive director of the NFLPA, said the ruling had tactical significance.

But, he added, "I think it's highly unlikely that all of the 32 NFL owners put all of their financial eggs in a single basket of getting TV money."

Doty has ruled over league labor matters for nearly two decades and helped usher in the modern NFL system of free agency in 1993.

The league and union again met with a federal mediator Tuesday in Washington while the NFL's owners were slated to meet among themselves Wednesday and Thursday.

The league could lock out the players after Thursday, though the NFLPA could decertify before then, opening avenues to litigation against the NFL with the 2011 season and billions of dollars at stake.

Contributing: USA TODAY's Jarrett Bell and Gary Mihoces, wire reports

See photos of: NFL

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