Falcons owner Arthur Blank testified in an arbitration grievance between the NFL and the National Football League Players Association that was decided in January.
The grievance claimed that NFL owners colluded to deny certain players guaranteed compensation in violation of the anti-collusion article (17) in the collective bargaining agreement.
The NFLPA alleged that the NFL, through its management council and with the help of Commissioner Roger Goodell, encouraged teams to not guarantee quarterback contracts in the wake of the Browns signing Deshaun Watson to a five-year, $230 million fully guaranteed deal in 2022.
The subsequent deals for Russell Wilson, Lamar Jackson and Kyler Murray were not fully guaranteed. According to court documents, former NFLPA President JC Tretter used a derogatory term for Wilson for not following the Watson precedent of a fully guaranteed contract.
The Falcons were in the bidding for Watson, of Gainesville, who also was a former ball boy for the team. Watson accepted the Cleveland deal.
The hearing was held in New York over 10 days in July and August of 2024. The full report was published Tuesday by Meadowlark Media’s Pablo Torre.
In addition to Blank, other owners who testified included John Mara (New York Giants); Jimmy Haslam (Cleveland Browns); Michael Bidwill (Arizona Cardinals); Greg Penner (Denver Broncos); Steve Bisciotti (Baltimore Ravens); Robert Kraft (New England Patriots); and Dean Spanos (Los Angeles Chargers).
The System Arbitrator Christopher F. Droney concluded that “the NFL Management Council encouraged the 32 member clubs of the NFL to reduce guarantees in future contracts with players at the March 2022 annual meeting of the club owners, the clubs did not join in such a collusive agreement and did not act in accordance with one as to the three quarterbacks named in the initial arbitration demand or to other veteran players.”
Blank discussed the league’s salary cap system.
“(T)he cap is a closed-loop system,” Blank said according to the court document. “You get X number of dollars and no matter what your personal wealth may be, it makes no difference. Every team has exactly the same salary cap, and you have to operate within that cap.”
Blank also made a statement about Watson’s contract that was reported in the media.
“You have to leave that to (Browns owners) Jimmy and Dee Haslam to make their own judgment,” Blank said. “The fact that it’s $80 million above the highest other contract ever given guaranteed in the history of the league (that is) 102 years old says a lot. Whether or not most teams in the NFL — or any other team — would’ve committed to that, I don’t know. That certainly is a huge commitment.”
The management council made a slideshow presentation advocating against future guaranteed contracts.
Blank testified that he generally remembered the meeting and the discussion of the slides. He stated that hearing the presentation did not cause him to reduce guarantees for his team.
After the Watson signing, Jackson was available the next offseason.
The Falcons publicly stated they were not interested and handed the starting quarterback job to Desmond Ridder. They would go on to sign Kirk Cousins to a four-year deal worth up to $180 million and take Michael Penix Jr. in the 2024 draft.
The Falcons were found guilty of tampering in the signing of Cousins.
Blank testified that Jackson’s injuries were a factor in the Falcons public decision not to try to sign the Ravens star, according to the court document. He also testified that keeping their quarterback rather than pursue Jackson also gave them more (salary) cap room flexibility.
The NFL and NFLPA have not commented on the ruling. Also, the Falcons did not immediately respond to a request for comment on the case.
On the size of Watson's contract and if the NFL owners are distressed: “I think you have to leave that to (Browns owners) Jimmy and Dee Haslam to make their own judgment. The fact that it's $80 million above the highest other contract ever given guaranteed in the history of the league that is 102 years old, you know, says a lot. Whether or not most teams in the NFL or any of the teams, the NFL would have committed to that kind of contract, I don't know. That certainly is a huge commitment."
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