Former Las Vegas Raiders head coach, Jon Gruden, is facing the prospect of having to pursue arbitration against the NFL and Commissioner Roger Goodell following a May 14, 2024 Supreme Court order that reversed a lower court ruling. Gruden’s claims arise from his forced resignation in October 2021 after the revelation of emails containing racist and derogatory language. Despite reaching a settlement with the Raiders, Gruden filed a lawsuit against the NFL and Goodell, alleging interference with his contract.
Initially, the NFL sought to compel arbitration based on provisions in Gruden’s employment agreement that bound him to the league’s rules and granted the Commissioner authority to arbitrate disputes detrimental to the NFL. However, the District Court denied the motion, citing concerns about bias and the scope of the arbitration provision, which specifically covered disputes between Gruden and the Raiders, who were not part of the litigation.
The Nevada Supreme Court overturned the District Court decision, finding that Gruden had not proven that the settlement with the Raiders extinguished the arbitration clauses. The Court also determined that Gruden’s claims fell within the scope of the arbitration provision and rejected arguments of unconscionability. As a result, the case was remanded with instructions to compel arbitration, potentially involving Goodell.
Justice Linda Marie Bell dissented, arguing that the arbitration agreement did not apply to Gruden as he was no longer employed by the Raiders. She also raised concerns about the incorporation of the NFL Constitution into Gruden’s contract, suggesting it was procedurally unconscionable due to its length and how it was imposed on Gruden.
Gruden will now have to decide whether to pursue arbitration with Goodell as the arbitrator, a situation that could pose challenges given the potential for bias. However, historical precedent suggests that Goodell may appoint a neutral party, as he did in a previous high-profile case involving the suspension of a player. Gruden’s determination to continue the legal battle, coupled with the scrutiny of Goodell’s involvement, may increase the likelihood of a fair consideration of his claims.
