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Official Blog of the AALS Section on Contracts

The Latest in the T.O. Contract Saga

Old news: the Philadelphia Eagles havesuspended wide receiver Terrell Owens and deactivated him for the rest of thefootball season. Also old news: in a lengthy opinion, an arbitrator recently upheld the suspension. More recent but nevertheless old news: Pennsylvania SenatorArlen Specter stated that he believed that the N.F.L. had treated T.O. unfairlyand indicated that he might refer the matter to the antitrust subcommittee ofthe Senate Judiciary Committee (which he chairs). Specter ranted:

I am madder than hell at what he has done in ruining the Eagles’ season. I think he’s in flagrant breach of hiscontract and I believe the Eagles would be within their rights in not payinghim another dime or perhaps even suing him for damages… I do not believe,personally, that it is appropriate to punish him (by forcing him to sit out therest of the season). He’s not committed a crime, he’s committed a breach ofcontract. And what they’re doing against him is vindictive.

The latest: the Eagleshave requested (again) that T.O. repay part of the signing bonus that he receivedwhen he signed the 7-year $49 million contract. ABC / ESPN reports:

The Eagles crafted Owens’ contractcarefully and precisely, in part to protect themselves financially, and thereis very specific “default” language which provided the team theprerogative to seek repayment of a prorated portion of his signing bonus if he wassuspended for more than one game. As part of [the arbitrator’s] ruling, which players feelmight give teams far more latitude in matters of discipline, it was revealedthat the Eagles first requested repayment of a portion of Owens’ signing bonusin July.

In a letter to Owens signed by head coach Andy Reid, the club cited the widereceiver’s absence from a mandatory mini-camp. That letter read in part:”Should you fail to repay that total amount by August 12, 2005, we willbegin deducting the above amount in equal installments from your game checks,and any other compensation owed to you by the club, or we will initiate anon-injury grievance for repayment of money owed to the club due to yourbreach.”

Despite that letter, the Eagles did not follow through in attempting torecoup the signing bonus money or in withholding paychecks.

If the Eagles do, indeed, garnish all or a portion of Owens’ game checksover the final five weeks of the season, almost certainly will precipitateanother non-injury grievance filed by the NFL Players Association on his behalf.

And, from The Onion: Terrell Owens Pre-Emptively Disparages Next Contract.

(For the uninitiated, here is a rough timeline of T.O.’s antics).

[Meredith R. Miller]

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