Smith v. Pro-Football

420 F. Supp. 738, 1976 U.S. Dist. LEXIS 13323
CourtDistrict Court, District of Columbia
DecidedSeptember 8, 1976
DocketCiv. A. 1643-70
StatusPublished
Cited by23 cases

This text of 420 F. Supp. 738 (Smith v. Pro-Football) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Pro-Football, 420 F. Supp. 738, 1976 U.S. Dist. LEXIS 13323 (D.D.C. 1976).

Opinion

OPINION

BRYANT, District Judge.

In this action, which was tried to the Court, plaintiff seeks to recover treble damages under the Sherman Antitrust Act, 15 U.S.C. §§ 1, 2, 3, and Section 4 of the Clayton Act, 15 U.S.C. § 15. No disputes exist as to any jurisdictional or procedural questions. The defendants are Pro-Football, Inc., better known as the Washington Redskins, and the National Football League, the unincorporated association of major league professional football teams in the United States. There is no dispute that the defendants are engaged in substantial interstate commerce as well as national telecasts of their football games.

The plaintiff, James McCoy (Yazoo) Smith, was an All-American college football player at the University of Oregon, from which he graduated in 1968. He was “drafted” by the Redskins in the league’s annual player selection draft in January, 1968, as their first round choice. He was the twelfth player in the nation to be drafted that year. After some negotiations, in which he was represented by an agent, plaintiff on May 11, 1968 signed a one-year contract with the Redskins, the Standard Player Contract required by the NFL Constitution and By-Laws to be signed by all players. Plaintiff, who was expected to become one of the finest defensive backs ever to play professional football, received a contract calling for the payment of a $23,-000 “bonus” for signing, an additional $5,000 if he made the team, and a salary of $22,000. He made the team easily, and performed at a very high level during his first season of play. Unfortunately, his career was abruptly terminated when he received a serious neck injury in the final *741 game of that 1968 season. In those causes of action which have survived to trial, plaintiff asserts that he was damaged in his business or property, i. e. his ability to market his unique skills, by the combinations and agreements of the defendants contained in the NFL Constitution and ByLaws and commonly known as the player selection draft, with its attendant effectuating restrictions. 1 The essence of these contentions is that because of the draft, which plaintiff argues constitutes a group boycott under the antitrust laws, he was unable to negotiate a contract reflecting the free market or true value of his services, and unable to negotiate a contract containing adequate guarantees against loss of earnings in the event of injury.

The mechanics of the NFL draft are not complex. The order of choosing is determined by the teams’ playing record in the season just ended, with the team with the poorest winning percentage picking first, the team with the second-worst winning percentage picking second, and so forth. The winner of the Super Bowl (the league championship game) picks last, and the runner-up in the Super Bowl picks second-last. Each team has one choice in each round of the draft (unless it has traded its choice in that round to another team), and there are seventeen rounds in each yearly draft. At the time of plaintiff’s selection by the Redskins, there were twenty-six teams choosing in the draft. Through various restraints imposed by the NFL Constitution and ByLaws, no team is permitted to negotiate prior to the draft with any player eligible to be drafted, and no team may negotiate with (or sign) any player selected by another team in the draft. Future draft choices may be traded by any team, and commonly are so traded. The net result of these restrictions is that the right to negotiate with any given player is exclusively held by one team at any particular time, and if the player cannot reach a satisfactory agreement with the team holding the rights to his services he cannot play in the NFL (unless of course he is traded to another team and signs with that team). Upon reaching an agreement with a team, each player is required to sign a National Football League Standard Player Contract containing various provisions, among which is a pledge to honor and obey the rules contained in the NFL Constitution and ByLaws. Each player may also sign a supplemental agreement with the team embodying any additional compensation and benefit features which he has negotiated with the team. As of March 5,1968, the National Football League Players Association became the exclusive bargaining agent and representative of the NFL players. This union executed its first collective bargaining agreement with the NFL owners in November of 1968; that agreement has since expired, and the union and the owners have been unable to reach another agreement to date.

I. THE LABOR LAW EXEMPTION

The defendants argue that the NFL draft is a subject of mandatory collective bargaining between the league and the NFL Players Association, the collective bargaining agent of the players, and is therefore exempt from review under the antitrust laws by virtue of the so-called “labor law exemption”. For the reasons which follow, the Court holds that this exemption does not bar a recovery by plaintiff in this case.

A.

As defendants argue, there is indeed a labor law exemption from the cover *742 age of the antitrust laws for certain arrangements resulting from collective bargaining agreements between employers and employees. This doctrine, the precise contours of which are neither clear nor entirely coherent, has been elucidated by the Supreme Court primarily in four leading cases: United States v. Hutcheson, 312 U.S. 219, 61 S.Ct. 463, 85 L.Ed. 788 (1941); Allen Bradley Co. v. Local Union No. 3, 325 U.S. 797, 65 S.Ct. 1533, 89 L.Ed. 1939 (1945); Meat Cutters v. Jewel Tea Co., 381 U.S. 676, 85 S.Ct. 1596, 14 L.Ed.2d 640 (1965); and United Mine Workers of America v. Pennington, 381 U.S. 657, 85 S.Ct. 1585, 14 L.Ed.2d 626 (1965); See also Connell Construction Co. v. Plumbers & Steamfitters, 421 U.S. 616, 95 S.Ct. 1830, 44 L.Ed.2d 418 (1975). While these cases do not leave the precise manner of applying the doctrine to the circumstances of professional football entirely free from doubt, they do establish rules and guidelines clearly dispositive of defendants’ contentions in this case. First, the cases provide no support whatever for the league’s argument that arrangements related to mandatory subjects of collective bargaining, prior to their embodiment in an agreement, fall within the exemption merely because they relate to mandatory subjects. A reading of Mr. Justice Goldberg’s concurring opinion in Jewel Tea, supra

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Clarett v. National Football League
306 F. Supp. 2d 379 (S.D. New York, 2004)
Brown v. Pro Football, Inc.
50 F.3d 1041 (D.C. Circuit, 1995)
McNeil v. National Football League
790 F. Supp. 871 (D. Minnesota, 1992)
Bridgeman v. National Basketball Ass'n
675 F. Supp. 960 (D. New Jersey, 1987)
Zimmerman v. National Football League
632 F. Supp. 398 (District of Columbia, 1986)
Wood v. National Basketball Ass'n
602 F. Supp. 525 (S.D. New York, 1984)
Partee v. San Diego Chargers Football Co.
668 P.2d 674 (California Supreme Court, 1983)
Mid-South Grizzlies v. National Football League
550 F. Supp. 558 (E.D. Pennsylvania, 1982)
Smith v. Pro-Football, Inc.
528 F. Supp. 1266 (District of Columbia, 1981)
McCourt v. California Sports, Inc.
600 F.2d 1193 (Sixth Circuit, 1979)
Hennessey v. National Collegiate Athletic Ass'n
564 F.2d 1136 (Fifth Circuit, 1977)
Linseman v. World Hockey Ass'n
439 F. Supp. 1315 (D. Connecticut, 1977)
Neeld v. National Hockey League
439 F. Supp. 446 (W.D. New York, 1977)
Robertson v. National Basketball Ass'n
556 F.2d 682 (Second Circuit, 1977)
Robertson v. National Basketball Association
556 F.2d 682 (Second Circuit, 1977)

Cite This Page — Counsel Stack

Bluebook (online)
420 F. Supp. 738, 1976 U.S. Dist. LEXIS 13323, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-pro-football-dcd-1976.