Former NFL coach Jon Gruden lost a Nevada Supreme Court ruling in a contract interference and conspiracy lawsuit he filed against the league after resigning from the Las Vegas Raiders in 2021. A three-justice panel ruled 2-1 in favor of the league, allowing them to force the case into private arbitration overseen by NFL Commissioner Roger Goodell. Gruden’s attorney plans to appeal the decision to the full seven-member state high court, arguing that the employer should not have the unilateral power to determine arbitration.
Gruden’s lawsuit, filed in November 2021, alleges that the league pressured him into resigning from the Raiders by leaking racist, sexist, and homophobic emails he sent years earlier while at ESPN. The panel majority stated that Gruden had acknowledged in his contract with the Raiders that NFL constitution allowed for arbitration to resolve disputes. However, it was unclear whether Goodell would act as the arbitrator, as other cases have seen the commissioner designate third-party arbitrators.
Justice Linda Marie Bell dissented from the majority opinion, stating that the NFL constitution was a substantial addition to Gruden’s contract with the Raiders that left him with unequal bargaining power. Bell argued that having Goodell act as the arbitrator was unacceptable. Gruden left the Raiders with over six seasons remaining on his $100 million contract, reaching a settlement with the team over the final years. The league appealed to the state high court after a district court judge initially allowed Gruden’s claim to proceed.
Gruden’s allegations stem from leaked emails sent to former Washington Commanders executive Bruce Allen from 2011 to 2018 during his time at ESPN. The emails were discovered during an investigation into the workplace culture of the Washington team. Gruden claims that the disclosure and publication of the emails by media outlets ruined his career and endorsement deals, leading to his seeking of monetary damages. Previously, Gruden had an extensive coaching career in the NFL, including Super Bowl success, before transitioning to a TV analyst role and ultimately returning to coach the Raiders in 2018.
Gruden’s attorney plans to continue fighting for his case to be heard in court rather than forced into private arbitration by the NFL. The ruling by the Nevada Supreme Court is a setback for Gruden’s legal battle against the league, centering on allegations of contract interference and conspiracy following his resignation from the Raiders. The outcome of the appeal to the full court will determine whether the case proceeds to arbitration or remains in the public domain for further litigation. The decision has implications for the power dynamics between employees and employers in resolving disputes within the sports industry.
