In a stunning decision, the United States Court of Appeals for the Second Circuit ruled that the NFL’s arbitration provision, which grants significant authority to the NFL commissioner, was unenforceable. Refusing to compel arbitration of a coach’s discrimination claims, the court determined that the arbitration clause “provides for arbitration in name only” and therefore lacks the protection of the Federal Arbitration Act (FAA). The Flores v. NFL decision promises cascading consequences for leagues, teams and coaches, as numerous pro leagues — many of which are headquartered in New York City and subject to the Second Circuit’s jurisdiction — have dispute resolution processes similar to the NFL provision rebuked by the court.

Brian Flores, the Minnesota Vikings defensive coordinator and former Miami Dolphins head coach, claimed in federal court that certain NFL teams and the NFL discriminated against him when Flores was interviewing with teams for a new job. The employment agreement with his then current team while he was interviewing with one of the defendant teams referred to the NFL constitution, which provides the NFL commissioner with “full, complete, and final jurisdiction and authority to arbitrate” several types of disputes, including “[a]ny dispute between any … coach … and any member club or clubs.”

Relying on that language, the NFL moved to compel arbitration. Surprisingly, the........

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