NFL Collusion Ruling Shows Encouragement of Reduced Player Contracts

NEW YORK, NY — An arbiter ruled in January 2025 that NFL teams did not collude to limit guaranteed contracts for players, contrary to allegations by the NFL Players Association (NFLPA).

The ruling came after a grievance filed by the NFLPA in 2022 claimed that the NFL and its clubs worked together to restrict fully guaranteed contracts following a landmark deal for quarterback Deshaun Watson. The ruling, released this week, highlights that while the NFL Management Council encouraged clubs to reduce contract guarantees, there was insufficient proof of collusion among the teams.

Christopher Droney, the system arbitrator, noted that evidence presented included discussions from the March 2022 owners meeting, where league officials expressed concerns about rising contract guarantees. “There is little question that the NFL Management Council, with the blessing of the commissioner, encouraged the 32 NFL clubs to reduce guarantees,” Droney stated.

Despite this encouragement, Droney concluded that the teams did not act in collusion regarding Watson’s contract or other veteran players. “The clubs did not join in such a collusive agreement,” he wrote.

The grievance was initiated by the NFLPA after Watson’s unprecedented five-year, fully guaranteed contract worth $230 million with the Cleveland Browns in March 2022. Following this, notable players, including Kyler Murray and Lamar Jackson, sought similar contracts but did not succeed.

During the arbitration hearing, testimonies revealed varying recollections among the owners about the management council’s presentation. Some owners, including Arizona Cardinals owner Michael Bidwill, expressed doubts about details of the discussion. In contrast, others, like New York Giants owner John Mara, found the suggestion of collusion absurd.

Amid these negotiations, the NFLPA’s executive director at the time, DeMaurice Smith, testified about a high-ranking NFL executive allegedly asking an owner to discourage fully guaranteed contracts. However, both the NFL and the accused owner denied these claims, leaving the issue unresolved.

While the NFLPA’s grievance was dismissed, the findings about the management council’s actions raised questions about the league’s influence over contract negotiations. The ruling may have significant implications for future player contracts in the NFL.