USA Law and Practice Contributed by: Irwin A. Kishner, Daniel A. Etna, Joel Wagman and Barry Werbin, Herrick, Feinstein LLP
6. Dispute Resolution 6.1 Role of National Court Systems Internal Regulation and Arbitration
MLB One type of arbitration is “baseball arbitration”, which originates from a methodology that is used to resolve baseball players’ salary disputes. In this type of arbi - tration, each party submits to an arbitrator an amount that represents the party’s last, best offer. The arbi - trator then must pick one of the submitted figures. MLB CBA still requires “last, best offer” arbitration. This system usually causes good faith bargaining and results in a high percentage of settlements. NBA The NBA utilises arbitration to resolve issues pertain - ing to the CBA. The CBA provides for arbitration of disputes relating to player grievances and selected articles within the CBA. Issues involving income, salary cap and minimum team salary are subject to arbitration under the CBA. Some disciplinary deter - minations issued by the NBA commissioner are bind - ing upon the player. If the disciplinary determination meets certain criteria, it may be appealed to a griev - ance arbitrator for a final determination. NFL The NFL CBA provides for arbitration of what are essentially labour disputes between the team and a player, including salaries and whether an injury that precluded a player from performing was sustained as a result of play. 6.3 Sanctions, Remedies and Challenges Following a league-issued decision, there is typically an internal appeals process that is set forth in league- governing documents. This internal appeals process is typically the final adjudicatory step available at the league level. After an arbitration award is issued, a party seeking to enforce the award should file a petition in federal court to confirm such award within one year of the date the award was issued. As noted in 6.1 National Court System , after exhausting their appeal options at the league level, players or teams may appeal the league’s determination in federal court under a narrow set of circumstances set forth in the Federal Arbitration Act (FAA) or under the Labor Management Relations Act (LMRA). An appeal sought from an arbitration award in the labour and employment context will likely result
US sports leagues are typically governed according to rules and internal regulatory procedures set forth in league constitutions and by-laws. In many cases, a league commissioner serves as a chief executive officer and is responsible for overseeing the day-to- day operation of the league. Although the organisa - tional structure of each league differs, the commis - sioner generally has plenary authority to enforce league rules. Jurisdiction over sports-related disputes depends on the nature of the dispute. In professional sports, an arbitration clause is often found in a CBA between a players’ association and the league or team. Under most CBAs, it is common for grievance, salary and contract disputes to be resolved through binding arbitration. League constitutions and by-laws often require that disputes between the league, players, member teams, officials or shareholders be resolved through arbitration, with the league commissioner fre - quently serving as arbitrator. Dispute Resolution Before the Courts It is a common requirement under most governing documents that the internal arbitration process be exhausted before a dispute can be heard in court. While it is unusual for a player to appeal their suspen - sion, this can occur. There are cases in which disputes involving leagues or teams may be heard initially in state or federal court. This usually occurs when a litigant is not party to the league’s operating agreements and is not bound by an arbitration provision contained in those governing documents. 6.2 ADR Mechanisms League constitutions and by-laws typically require that disputes between the league, players, member teams, officials or other internal league stakeholders be resolved through arbitration, in many cases before the league commissioner as arbitrator.
383 CHAMBERS.COM
Powered by FlippingBook