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NBA fails to beat opt-out clauses
iy • September 13, j-| es j a y • September 13, 1994
Judge validates contracts,
players escape salary cap
NEWARK, N.J. (AP) — A federal judge Mon
day upheld the contracts of NBA players A.C.
Green, Chris Dudley and Toni Kukoc, rebuffing
the league’s claim that the deals circumvented
the salary cap.
The decision by U.S. District Judge Dickin
son Debevoise left free agent Horace Grant in
limbo less than four weeks before training
camp. He wants his $22 million contract with
Orlando upheld.
The judge said he was unable to determine
whether that deal was intended to get around
the cap. Grant’s attorneys said they will seek a
hearing as soon as possible.
Green of the Phoenix Suns, Kukoc of the
Chicago Bulls and Dudley of the Portland Trail
Blazers recently signed new deals, using contract
clauses that allowed them to become free agents
after one year. Because they re-signed with their
old teams, the new contracts weren’t subject to
salary cap limitations.
The NBA invalidated all three contracts, say
ing the players initially signed for less than their
market value and that the one-year opt-out
clauses were attempts to get around the cap.
Debevoise decided the players’ deals were
valid based on his ruling last year when Dudley
signed a seven-year, $10.5 million deal. The
league challenged that contract and lost.
Green and the Suns filed suit last month after
the NBA voided the 6-9 forward’s five-year, $26
million deal signed on July 26. Green, who
signed a five-year, $15 million contract with
Phoenix before the 1993-94 season, used an opt-
out clause that made him a free agent after the
end of last season.
Dudley, whose new deal pays him $24 mil
lion over six years, and the Chicago Bulls, who
signed Kukoc for an average of $4.1 million
over six years, filed similar complaints against
the league.
The NBA considered the judge’s latest ruling
an impediment to new contracts containing opt-
out clauses. Grant’s deal with the Orlando Magic
would allow him to become a free agent after
earning just $2.1 million this season.
“We just have to show in each case the con
tract is a circumvention of the cap,” said Jeffrey
Mishkin, the league’s senior vice president for le
gal and business affairs. “All new contracts can
now be challenged. We think this is a very im
portant victory for the NBA.”
Bruce Meyer, who represents Green, Grant
and Dudley, said he will show the Grant contract
represents the former Chicago Bull’s market val-
■Vi': .As-rure'i
The Battalion • Page 7
WMMmm—
NFL to pay record salary
settlement from 1987 strike
WASHINGTON (AP) — The
National Labor Relations Board
said today it is awarding NFL
players a record $30 million in
back pay arising from the 24-day
strike in 1987.
“The $30 million constitutes
the largest back pay award in the
history of the agency,” the NLRB
said in announcing plans for a
news conference Tuesday to detail
the settlement with NFL owners.
The award is the result of
charges brought against club
owners by the National Football
League Players Association.
The association had sought
restoration of wages and bonus
incentives lost when the NFL
Management Council that year
refused to allow players to play in
games on the weekend of Oct. 18-
19 — after they had uncondition
ally ended the walkout.
NLRB general counsel Fred
Feinstein said in a statement
Monday that 1,300 players will
share in the award that includes
backpay, bonuses and interest.
The litigation arose in 1987,
based upon charges filed with
the agency by the players
association.
The central charge alleged
that the Management Council
and the teams had “unlawfully
refused to allow returning strik
ing players to participate in the
games immediately following the
end of the strike,” Feinstein said.
The owners had adopted a rule
about two weeks into the strike
that required that any player
wanting to return and play in a
Sunday or Monday game immedi
ately following a settlement or
end of strike had to report back to
work by 1 p.m. on the previous
Wednesday.
Replacement players could be
signed to play in Sunday games
as late as 4 p.m. on the Saturday
before the games and in Monday
night games as late as 4 p.m. on
the same day.
The complaint noted that the
players had unconditionally end
ed the strike on Oct. 15.
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