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Nevada Supreme Court Rejects NFL Arbitration Clause in Jon Gruden Lawsuit

An en banc majority deemed the NFL arbitration provision unconscionable for a former employee, clearing the path for public litigation.

5/20
Aug 29, 2021; Santa Clara, California, USA; Las Vegas Raiders head coach Jon Gruden walks onto the field before the start of the game against the San Francisco 49ers at Levi's Stadium. Mandatory Credit: Cary Edmondson-USA TODAY Sports/File Photo
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Detroit Free Press

Overview

  • The 5–2 ruling held that forcing Gruden into arbitration under the NFL Constitution was unconscionable because it lets Commissioner Goodell oversee disputes about his own conduct and allows unilateral contract amendments without notice.
  • By sending the case to civil court, the decision exposes the league to discovery of internal materials from the Washington Commanders investigation and heightens settlement incentives.
  • Gruden alleges the NFL and Goodell orchestrated a leak of his 2011–18 emails containing racist, misogynistic and homophobic language to destroy his reputation and cost him about $60 million in contracts and endorsements.
  • The NFL can now seek U.S. Supreme Court review of the ruling, though a denial would accelerate the move to discovery and public hearings.
  • Legal observers say the case could reshape employer arbitration practices nationwide and influence other NFL disputes such as Brian Flores’s ongoing litigation.