The Illinois Business Law Journal

Probing Spygate: Will the NFL Indemnify Key Witness?

I.    INTRODUCTION

    From the moment of its initial disclosure, the National Football League's (NFL's) so-called Spygate incident had the potential to be one of the more notorious sports scandals in recent memory.  During the first game of the 2007 season, a videographer on the New England Patriots sideline was caught taping the hand signals of New York Jets offensive coaches, a violation of Article 9 of the NFL Constitution and Bylaws.[1]  The intrigue was apparent: the league's modern-day dynasty had been caught red-handed, begging the question of whether the Patriots had broken league rules at any other times during its championship era.  The NFL's first-year commissioner, Roger Goodell, addressed the issue quickly, fining the team and head coach Bill Belichick a combined $750,000 and taking away a first-round draft pick.[2]  Despite its rapid action, the NFL's handling of the situation added to the mystery.  After announcing the penalty, the league destroyed the tapes it confiscated from the Patriots.[3]  Further fueling the controversy, U.S. Senator Arlen Specter publicly rebuked the Patriots, accusing the team of "stonewalling" his own investigation into the matter.[4]

    The questions followed the then-undefeated Patriots to Super Bowl XLII, when the Boston Herald reported that Matt Walsh, a former Patriots employee, allegedly taped the St. Louis Rams walk-through practice the day before New England's surprise upset of the Rams in Super Bowl XXXVI.[5]  Since that report, the NFL has expressed a desire to speak with Walsh regarding his knowledge of any potential wrongdoing by the team.[6]  Walsh, for his part, has suggested he has damaging information, but his legal representation is demanding full indemnity before revealing his knowledge or role in any malfeasance.[7]  The negotiations over the scope of an indemnity agreement have lasted for months, keeping the league in the dark as to what Walsh really knows.[8]

BALCO’d: How Will the Tammy Thomas Conviction Affect Barry Bonds and Future Steroids Cases?

I. Introduction

Barry Bonds’ publicity may arise from his feats on the baseball diamond as Major League Baseball’s (“MLB”) all-time home run king, or it may arise from allegations that he took anabolic steroids to gain an edge on the playing field.[i] His negative publicity has recently subsided, primarily because he is not currently signed to a contract by an MLB franchise, and the steroids controversy lost momentum. However, Bonds’ name may re-enter the public consciousness with the recent conviction of Tammy Thomas for perjury and obstruction of justice.[ii] Thomas denied use of steroids, like many athletes before her, that have been in the position of being accused of the same.[iii] However, she was convicted under evidence that clearly indicated that she had used anabolic steroids.[iv] The result of this case may have a significant effect on any future litigation involving Bonds, and further-reaching implications on future steroids criminal cases.

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The Vick Saga: A Personal and Business Tragedy

Introduction

We all know that Michael Vick was recently sentenced to do a twenty-three month term in federal prison. [1] Most of us even know why he got the sentence and have made our judgments based on whether we love football, love animals or simply dislike very well paid athletes. [2] In an ESPN poll asking for responses to various questions about Vick's sentence, the results showed that of the 136,898 votes tallied, among other things, 53.4% of the individuals that voted believe Vick's sentence was just right, 72% would not want their favorite team to take a chance on him when he gets out of prison, and 57.8% of voters would not want the NFL to allow him back in the league when he gets out. [3] While many have been blinded by the glitz and glamour that comes with being a professional athlete, some have characterized them as overpaid, spoiled brats that have no concept of what the real world is like. Others respect the amount of time and effort it takes to not only become the best at your chosen sport, but to maintain that edge, that keeps one among world class athletes at the top of their game for anything from a few years to several decades.

The fact is that it cannot be easy to make it as a professional athlete. Apart from the talent and physical attributes required to make it to the professional level of any sport, there are the countless hours in the weight room required to stay in shape and the constant pressure that the athlete must feel because someone is always waiting in the wings to take their job (see Article XIV discussion of the NFL CBA below). There is also the constant scrutiny from the media and fans, the daily (if not hourly) requests for favors (from money to tickets) and probably last but not least, the isolation these individuals must feel that comes from never knowing if family, friends and hangers-on are there because they want something or they are truly people of the afore-mentioned titles.

But I digress, Vick has been criticized countless times for his crimes and now he is paying for it. [4]There are however two questions that come to bear when I consider the Vick situation: first, how did it all go so wrong for such a gifted athlete, and second, from a business perspective; what happens to an owner when your $130 million investment agrees to a plea deal that sends him to jail for twenty-three months? [5]

Wait 'Til Next Year: When Will Comcast and The Big Ten Network Reach an Agreement?

I. INTRODUCTION

When the college footballs season kicks off in August, Midwestern cable customers may finally get the chance to see what all the fuss over the Big Ten Network (BTN) is about.  After over a year of tense negotiations, published reports indicate that the BTN and Comcast are nearing a deal to air the channel on the Midwest's largest cable provider.[1]  Upon becoming the first conference to announce the creation of its own cable station, the Big Ten counted on the appeal of being able to guarantee its fans the ability to see nearly every game played by conference teams.[2]  When negotiations commenced with Midwest cable providers, however, Comcast and its competitors balked at the BTN's high asking price and broad distribution demands.[3]  The ensuing stalemate prevented most Midwest fans who do not have satellite cable from viewing the much-anticipated Ohio State-Wisconsin football game in November.[4]  Additionally, the Wisconsin-Indiana and Wisconsin-Purdue men's basketball games in February were also unavailable to most fans within the Big Ten region.[5]

Months of public sparring between the BTN and Comcast seem to have finally given way to a compromise.  As major sports leagues are trending toward cable broadcasting, the anticipated agreement between Comcast and the BTN is sure to impact fans and cable customers nationwide, while setting a precedent for future contractual negotiations between cable providers and athletic leagues.

Fantasy or Reality? Major League Baseball Still Looking to Cash in on Fantasy Baseball

I. Introduction

      In fantasy sports leagues, fans draft current major league players to create their own imaginary roster, with the success of each team hinging on how each player performs throughout the season.[1] Internet sites such as Yahoo! and ESPN pay several million dollars for the right to operate fantasy leagues.[2] Major League Baseball (“MLB”), and St. Louis-based CBC Distribution and Marketing Inc. (“CBC”) have been entangled in a legal dispute over whether MLB players’ names may be used in fantasy baseball leagues.[3] This dispute is noteworthy because the fantasy sports industry generates over $1.5 billion dollars annually.[4] Should MLB prevail, they will hold exclusive rights to players’ names and statistics and may withhold such, likely causing fantasy baseball to be much less appealing to fans.[5] 

Congressional Hearings on Steroids: Is this an efficent use of Congress' Time

Introduction

In November 2007, Gallup conducted a survey of the top ten issues on the American public's priority list. [1] The list was based on "an analysis of open-ended responses to questions asking Americans to name the top priorities for the government and to name the most important problem facing the nation today, plus a series of additional questions in which Americans rate the priorities of the issues and concerns facing the nation today." [2] The survey showed the top five issues on American minds in ascending order being Iraq, terrorism and national security, the economy, energy and illegal immigration. [3] Each of them are relevant considering current news clippings, however steroid use in Major League Baseball did not make the top ten. [4] If this does not appear to be a concern for the American public, then why does it seem that our representatives in Congress are so keen on finding a cure to a problem that is not pressing? This paper will inquire into the legislative branch’s interest in steroids, if the steroid issue is of any real concern, and most importantly, why it is a congressional priority compared to the issues that Americans really care about.

When In Doubt, Seek a Buyout: Indiana's Solution to the Kelvin Sampson Dilemma

I.    INTRODUCTION

Parting ways with a college coach accused of violating National Collegiate Athletic Association (NCAA) rules has become a delicate process.  On February 8th, the NCAA notified Indiana University that its men's basketball coach, Kelvin Sampson, had allegedly committed five "major" NCAA rule violations.[1]  After more than a week of speculation surrounding Sampson's future at Indiana, the school negotiated a settlement to terminate its relationship with the second-year coach.[2]  In exchange for a $750,000 buyout, Sampson resigned and agreed not to purse any legal action against the university.[3]

On its face, the buyout seems generous for a coach who conceivably could have been fired outright for cause.  Sampson, who was already under NCAA sanction for prior infractions, had a clause in his contract that allowed Indiana to terminate him "for significant or repetitive violations."[4]  Nevertheless, Indiana was in a difficult position.  Firing Sampson prior to NCAA hearings on the alleged violations would have likely spurred a wrongful termination suit in which Sampson could potentially recover the remaining $2.5 million on his contract.[5]  Allowing the embattled coach to remain a Hoosier until the NCAA's final determination in July would prolong the program's instability as the NCAA tournament and recruiting season approach.[6]  Faced with this dilemma, Indiana decided it was well worth the buyout to get Sampson out the door immediately.

College Football Coaching Carousel

I. Introduction

Both the National Football League (“NFL”) and the National Collegiate Athletic Association (“NCAA”) have endured their fair share of high profile coaching defections either from one university to another, university to professional franchise, or professional franchise to university.[1] Among the high profile coaches who have abandoned their respective clubs under contract are Nick Saban, formerly of the Miami Dolphins and currently with the University of Alabama, Bobby Petrino, head football coach at Arkansas via the Atlanta Falcons, and Rich Rodriguez, the freshly minted coach at the University of Michigan.[2] The defections by Saban and Petrino received a fair amount of attention. However, the Rich Rodriguez situation may be enough to scare other high profile coaches from jumping ship too soon.

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Sonic Boom or Bust: Franchise Relocation in the NBA

I.  Introduction

The emergence of today’s state-of-the-art basketball arena has National Basketball Association (“NBA”) team owners holding cities hostage. Team owners seek public funding for these stadiums, and if the city refuses to provide the funding, there are always smaller markets without professional franchises willing to pony up. [1] The most recent example involves the Seattle Supersonics. The Sonics have called Seattle home for forty years. [2] Their future in the Emerald City appears bleak as the current owner, Oklahoma City businessman Clay Bennett, plans to relocate the team to Oklahoma City unless a deal to construct a new arena is agreed upon. [3] The City of Seattle, reluctant to provide funding for a new arena, has sought to keep Bennett from relocating. [4]

The Attack On Fantasy Sports: Part I - Gambling

    In the last thirty years, fantasy sports have evolved from a little known hobby into a $1.5 billion industry.[1]  While historical accounts differ, CNN asserts that the first fantasy league began in 1980 and involved the use of baseball statistics.[2]  Fantasy sports grew drastically during the 1990s, as the rise of the internet allowed for services that conduct quick statistical updates and provide players with up-to-the-minute league scores and standings.[3]  By 2005, there were more than 12.6 million Americans competing in fantasy sports leagues, spending nearly $500 per player.[4]  The rapid rise of the fantasy sports industry has spurred litigation that threatens viability of the industry as a whole.  In part of one of this article, we shall discuss a recent case in which a federal court was asked to declare fantasy sports to be a form of illegal gambling.