On August 11, 2025, the Nevada Supreme Court, in a 5–2 ruling, paved the way for Gruden’s 2021 defamation lawsuit to proceed in civil court, rejecting the NFL’s attempt to force the case into arbitration.
Here’s the background:
- In October 2021, Gruden was forced to resign as Raiders coach after leaked emails he had written during his time as an ESPN analyst were loaded with racist, misogynistic, and homophobic content. He promptly sued the NFL and Goodell, alleging a “malicious and orchestrated campaign” intended to destroy his reputation and contract/damages.
- Lower courts went back and forth: a district court sided with Gruden, a three-judge panel of the Nevada Supreme Court sided with the NFL favoring arbitration in May 2024, but the full high court granted a rehearing in October and now, in August 2025, delivered a win for Gruden.
🚩 The Legal Rationale: Why Gruden Won
1️⃣ Unconscionability: The court found the NFL’s arbitration clause both procedurally and substantively unconscionable. Gruden could not negotiate the clause. It was a “take‑it‑or‑leave‑it” term in the NFL Constitution. Additionally, the clause lets Commissioner Goodell arbitrate disputes involving his own conduct. The court held that this is a conflict of interest and a bright unfairness indicator.
2️⃣ No application to former employees: The court concluded that the arbitration provision doesn’t apply to Gruden because he was no longer an NFL employee when he wrote the emails at issue.
3️⃣ NFL’s Constitution is one-sided: Goodell can amend arbitration terms whenever he wants, without notice, making the clause illusory and one-sided.
4️⃣ Equitable estoppel doesn’t help the NFL: The league tried to enforce the arbitration clause from Gruden’s coaching contract via estoppel; the court said no. It reaffirmed the district court’s finding that the NFL can’t force arbitration.
“The arbitration clause in the NFL Constitution is unconscionable and does not apply to Gruden as a former employee.” — Nevada Supreme Court majority opinion.
🤔 What’s Next?
The NFL can, and may, appeal to the U.S. Supreme Court. That said, switching back to public court sets the stage for full discovery. This is something that the NFL likely wants to avoid.