The NFLPlayers Association has won a decision from a federal judge that takes theunion another step toward potentially suspending or revoking agent DavidDunn’s certification to represent NFL players.
Dunn, whose list ofabout 50 NFL clients includes quarterbacks Carson Palmer, JakePlummer and Matt Hasselbeck, was suspended for two years by theNFLPA in 2003, but the union couldn’t enforce the punishment because Dunn filedfor Chapter 11 bankruptcy protection. Bankruptcy proceedings automatically stayall administrative actions against a debtor, and the bankruptcy judge in thatproceeding has previously refused to lift the stay to allow the NFLPA to punishDunn.
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Seahawks running back Shaun Alexander stayed
in Seattle for the record deal he sought. |
The NFLPA sued infederal court, contending that its right to determine who can or cannot be anagent under federal labor law trumps Dunn’s interest in keeping hiscertification to represent players. “The union argued that when David Dunnentered bankruptcy he lost the right to retain the certification unless theunion wanted him to continue, and the judge agreed,” said
Lisa Fenning,outside attorney for the NFLPA in the case.
U.S. District CourtJudge Ronald Lew, in a March 1 ruling, agreed with the NFLPA’s argument,but said before the union could take action, it must go back to the bankruptcycourt to ask again that the stay be lifted. Fenning said, “Now that theunderlying labor law issue has been decided, it would be highly unlikely thatthe bankruptcy court would deny relief from the stay.”
Richard Berthelsen, NFLPA general counsel, said “It’s a veryfavorable decision for us.” Berthelsen added that the union planned to file amotion with the bankruptcy court judge overseeing Dunn’s Chapter 11 proceeding,asking that the stay against the NFLPA discipline be lifted.
Reed Dickens, outside public relations counsel for Dunn andhis agency, Newport Beach, Calif.-based Athletes First, called theruling “another step in a long and complicated process.”
But Berthelsen said,“Going back to the bankruptcy court is another step, but it may be the laststep for David Dunn. Because if we get the stay lifted — which it would seemthe bankruptcy court has to do in view of Judge Lew’s ruling — Dunn doesn’thave their protection anymore.”
The NFLPA’s disciplinaryaction is based on testimony given by NFL players at a trial in 2002 in which ajury found that Dunn unfairly competed against his former partner, agent LeighSteinberg. That verdict was overturned by an appeals court, but becausethat reversal was based on legal technicalities, including errors in juryinstructions, the NFLPA remains intent on disciplining Dunn.
The Steinberg v. Dunncase was tried in Lew’s courtroom in the fall of 2002.
In his ruling, Lewwrote, “Noncompliance with the agent regulations, including the disciplinaryprocedures, effectively puts [Dunn] in breach of his agreement with the NFLPA.”
Dickens maintained thatthere was no chance of Dunn losing his certification altogether. Heacknowledged that Dunn may be forced to submit to the NFLPA disciplinaryprocess but that Dunn could appeal that two-year suspension to the NFLPA’sarbitrator, Roger Kaplan.
Dickens said that Dunnwas “looking forward” to arbitration, where he could tell his side of thestory.
“It is supposed to be anarbitration process,” Dickens said. “It doesn’t mean immediatedecertification.”
NFLPA lawyers disputedDickens’ claims that there was not a chance of Dunn losing his certification.“Dunn does not have the right to continue to have the benefits of [NFLPA certification]unless the NFLPA consents,” Fenning said.
Berthelsen said thatpending a favorable ruling from the bankruptcy court, the NFLPA disciplinarycommittee would decide whether Dunn should lose his certification or be able tosubmit himself to the disciplinary process.
If he is allowed to gothrough the disciplinary procedure, it could take months for an outcome. TheNFLPA and Dunn’s attorneys would likely be allowed some time to prepare for thearbitration, which is conducted like a mini-trial, with both sides presentingevidence and witnesses.
Dunn’s partner, JobyBranion, was also suspended by the NFLPA’s disciplinary committee based ontestimony in the Steinberg v. Dunn case. The union’s disciplinary committeevoted to suspend Branion for one year, but Kaplan reduced the suspension tonine months.
“Athletes First iscarrying on business as usual,” said Dickens, adding that, besides Dunn, thefirm has two other certified agents, Branion and Justin Schulman, whowas certified in 2004.
ALEXANDER AND AGENT GET THEIR DEAL:Veteran agent Jim Steiner and client Shaun Alexander, the NFL’sMVP last season, signed the deal they were both looking for last week: thebiggest-ever contract for an NFL running back.
The eight-year, $61.688million deal beats out the eight-year, $60 million deal signed in 2004 by LaDainianTomlinson and his agent, Tom Condon of IMG.
“[Alexander] was happywith it,” Steiner said.
The deal was negotiatedMarch 4 just hours before what had been a deadline set by the NFL and the NFLPAfor the start of free agency. Steiner had previously told SportsBusinessJournal that Alexander might not make it to free agency — if the SeattleSeahawks agreed to give him the richest deal for a running back.
The deal was negotiatedunder the old NFL collective-bargaining agreement. At press time for thiscolumn, the league and union were negotiating for a new labor deal.
“In general, it is hardto operate in an environment when you don’t know what the [salary] cap is goingto be and whether we are going to have an old CBA or a new CBA,” said Steiner,who heads the football division for SFX Sports. “But we still had tolook at the deal the way it was and where he really wanted to be, which wasSeattle. Even if another team came in and offered him more, he would havestayed in Seattle. They have a great offensive line. He loves the area.”
Contact Liz Mullen with labor and agent news at lmullen@sportsbusinessjournal.com.
