Jack Reynolds v. National Football League, Charles Young v. National Football League, Marvin Crenshaw v. National Football League

584 F.2d 280
CourtCourt of Appeals for the Eighth Circuit
DecidedSeptember 27, 1978
Docket77-1753, 77-1758 and 77-1821
StatusPublished
Cited by76 cases

This text of 584 F.2d 280 (Jack Reynolds v. National Football League, Charles Young v. National Football League, Marvin Crenshaw v. National Football League) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jack Reynolds v. National Football League, Charles Young v. National Football League, Marvin Crenshaw v. National Football League, 584 F.2d 280 (8th Cir. 1978).

Opinion

GIBSON, Chief Judge.

In these cases, fifteen active and one inactive National Football League players object to the settlement of an action brought on behalf of 5,706 former and present professional football players. The class action was prosecuted to secure monetary damages and other relief for the players from the National Football League, individual teams, and other defendants for violations of the antitrust laws. The settlement approved by the District Court 1 will provide a total of $13,675,000 for distribution to members of the plaintiff class. After carefully considering the record and the briefs and oral arguments of the parties and the objecting class members, we affirm the order of the District'Court approving the settlement.

The present suit is an outgrowth of this court’s decision in Mackey v. National Football League, 543 F.2d 606 (8th Cir. 1976), cert. dismissed, 434 U.S. 801, 98 S.Ct. 28, 54 L.Ed.2d 59 (1977). In Mackey, the Rozelle Rule was challenged as a violation of section 1 of the Sherman Act. The Rozelle Rule, we noted,

essentially provides that when a player’s contractual obligation to a team expires and he signs with a different club, the signing club must provide compensation to the player’s former team. If the two clubs are unable to conclude mutually satisfactory arrangements, the Commissioner may award compensation in the form of one or more players and/or draft choices as he deems fair and equitable.

543 F.2d at 609, n.l.

The District Court in Mackey had concluded that the Rozelle Rule was a per se violation of the Sherman Act. A panel of this court concluded that it was not a per se *282 violation of the Sherman Act, but was a violation when considered under the standard of reasonableness, as being more restrictive than reasonably necessary to meet legitimate business needs. We also noted that the matter of restrictions- on player movement was a subject of mandatory collective bargaining under § 8(d) of the National Labor Relations Act, 29 U.S.C. § 158(d). Had the Rozelle Rule been a result of bona fide arms-length bargaining between the National Football League Players Association (Players Association) and the league teams, it would have qualified for the labor exemption from antitrust scrutiny. Since there was evidence to support the District Court’s decision that the Rozelle Rule had not been the result of arms-length bargaining, we concluded that the labor exemption did not apply.

The National Football League applied to the Supreme Court for certiorari in Mackey. That petition was not acted upon prior to its being withdrawn by the football league as a part of the settlement of the present action. Thus, this court’s decision in Mack-ey stands as the final decision regarding the antitrust implications of the Rozelle Rule.

Following our decision in Mackey, the Players Association sponsored the present class action seeking damages and other relief. The Players Association is the bargaining representative for the National Football League players. They supplied financial support for this action, which was commenced by seventy-eight named players or retired players. The class was represented by Edward M. Glennon of the firm of Lindquist & Yennum of Minneapolis. Lind-quist & Vennum had represented and continues to represent the Players Association.

The course of this class action litigation is set out in detail in the District Court’s findings of fact and conclusions of law. Essentially, the National Football League, the Players Association, and the class action counsel proceeded to negotiate a collective bargaining agreement between the National Football League teams and the Players Association and a settlement of the class action between the National Football League and the other defendants and the plaintiff class. This approach was eminently practical in that it was obvious that the antitrust liability suggested by our decision in Mackey placed a potentially crippling strain on the resources of professional football. To have ignored this and the possibly devastating effect of operating without a means of compensating teams that lost premium players would have been irresponsible. It would have endangered the availability of any recovery for the players allegedly damaged by the Rozelle Rule and would have endangered the continued employment prospects of professional football players.

We do not say that the collective bargaining agreement that resulted and the class action settlement constituted a single entity. The evidence fully supports the District Court’s conclusion that the collective bargaining agreement was not part of the consideration for the class action settlement, though there was not any great incentive to settle the class action absent some agreement on the procedural rules governing player movement. Thus the inquiry to be made by the District Court in reviewing the proposed settlement and by this court in reviewing the District Court’s approval of that settlement is limited to the settlement itself rather than the labor agreement contained in the collective bargaining document. 2

As we stated in Grunin v. International House of Pancakes, 513 F.2d 114, 123 (8th Cir.), cert. denied, 423 U.S. 864, 96 S.Ct. 124, 46 L.Ed.2d 93 (1975);

Our review of the settlement approved by the district court in this case is guided by the principle that:

Such a determination is committed to the sound discretion of the trial judge.

*283 Great weight is accorded his views because he is exposed to the litigants, and their strategies, positions and proofs. He is aware of the expense and possible legal bars to success. Simply stated, he is on the firing line and can evaluate the action accordingly.

Ace Heating and Plumbing Co. v. Crane Co., 453 F.2d 30, 34 (3rd Cir. 1971). Only upon the clear showing that the district court abused its discretion will this court intervene to set aside a judicially approved class action settlement. In re International House of Pancakes Franchise Litigation, 487 F.2d 303, 304 (8th Cir. 1973) . See also City of Detroit [v. Grin-nell Corp., 495 F.2d 448, 455 (2d Cir. 1974) ]. With these precepts in mind we turn to appellant’s charges of error.

Certification under Fed.R.Civ.P.

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Bluebook (online)
584 F.2d 280, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jack-reynolds-v-national-football-league-charles-young-v-national-ca8-1978.