Kapp v. National Football League, s. 76-2849

• Decision Date: 04 August 1978
• Docket Number: 76-2878 and 76-2879,Nos. 76-2849,s. 76-2849
• Citation: 586 F.2d 644
• Parties: 1978-2 Trade Cases 62,198 Joseph R. KAPP, Plaintiff-Appellant, v. NATIONAL FOOTBALL LEAGUE, an unincorporated association, et al., Defendants-Appellees. Joseph R. KAPP, Plaintiff-Appellee, v. NEW ENGLAND PATRIOTS FOOTBALL CLUB, INC., Defendant-Appellant. Joseph R. KAPP, Plaintiff-Appellee, v. NATIONAL FOOTBALL LEAGUE, an unincorporated association, et al., Defendant-Appellant.
• Court: U.S. Court of Appeals — Ninth Circuit

Page 644

586 F.2d 644 1978-2 Trade Cases 62,198 Joseph R. KAPP, Plaintiff-Appellant,
v.
NATIONAL FOOTBALL LEAGUE, an unincorporated association, et
al., Defendants-Appellees.
Joseph R. KAPP, Plaintiff-Appellee,
v.
NEW ENGLAND PATRIOTS FOOTBALL CLUB, INC., Defendant-Appellant.
Joseph R. KAPP, Plaintiff-Appellee,
v.
NATIONAL FOOTBALL LEAGUE, an unincorporated association, et
al., Defendant-Appellant. Nos. 76-2849, 76-2878 and 76-2879. United States Court of Appeals,
Ninth Circuit. Aug. 4, 1978.
As Amended on Denial of Rehearing and Rehearing En Banc Nov. 22, 1978.

Page 645

Moses Lasky (argued), of Brobeck, Phleger & Harrison, San Francisco, Cal., for plaintiff-appellant.

Paul J. Tagliabue (argued), of Covington & Burling, Washington, D. C., for defendants-appellees.

Appeal from the United States District Court for the Northern District of California.

Before MERRILL, TRASK and CHOY, Circuit Judges.

TRASK, Circuit Judge:

This appeal is the result of several years of litigation concerning former professional football quarterback Joseph Kapp and his relationship with the National Football League (NFL). Kapp originally filed suit against the NFL, its 26 member clubs, its Commissioner, Alvin Ray "Pete" Rozelle and other named individuals. He alleged that certain rules of the NFL violated the antitrust laws and caused his unlawful expulsion from professional football in 1971. In addition, he claimed that the New England Patriots breached an alleged contract with him. The Patriots counterclaimed against Kapp.

Kapp moved for partial summary judgment on the antitrust issues. This resulted in a finding by the district court that the challenged rules violated the antitrust laws. Kapp v. National Football League, 390 F.Supp. 73 (N.D.Cal.1974).

For a clear understanding of what the court held in granting this partial summary judgment, some background is necessary. The NFL is an unincorporated association consisting of member clubs, which own and operate professional football teams. The League schedules contests among the various teams, promulgates rules intended to resolve disputes and promotes the welfare of the teams and their players, and performs other administrative tasks. Since 1960, Pete Rozelle has been the League's Commissioner and chief executive officer.

Page 646

The NFL provisions which Kapp attacked are set out below.

The draft rule. The "draft" rule contained in Article 14 of the NFL Constitution provides that at an annual meeting the member clubs would select prospective players, principally from the ranks of the outstanding college and university graduates. The effect of this rule is to prevent other teams from negotiating with a player, even if the selecting club made an unacceptable contractual offer to him.

The tampering rule. To prevent interference with the selecting club's right to its draft choices and active players, the "tampering" rule of Article 9.2 provides that a club may not negotiate with, or make an offer to, another team's player.

Standard Player Contract. Before a player can participate in the NFL, he must sign a Standard Player Contract. This was part of the 1968 collective bargaining agreement, the 1970 collective bargaining agreement, and appears in Article 15 of the 1971 NFL Constitution. The Contract provides that the player becomes bound by "the Constitution and By-laws, the Rules of the League, of the Club, and the decisions of the Commissioner of the League. . . ." Specific terms such as salary, length of contract, and other matters were incorporated into the Standard Player Contract for each player.

The option rule. This rule gave the employing club a unilateral right to renew a player's expired contract for an additional year at a reduced rate of compensation, which could not be less than 90 percent of his compensation for the previous year. This rule was intended to induce a player to renew his contract, and not "play out his option" so as to be free to negotiate with other clubs.

The Rozelle Rule. Even after a player becomes a free agent, another club could not employ him until it complied with the "ransom" or "Rozelle Rule" of Article 12.1(H) of the Constitution. This rule provides that the new employing club may not sign a contract with a free agent unless it first makes "satisfactory arrangements" with the former employing club, or, if these are impossible, employ the free agent subject to the unreviewable power of Commissioner Rozelle to award one or more players to the former employing club from the acquiring club's active, reserve, or selection list.

The district court examined these provisions and...