FOR IMMEDIATE RELEASE
NFL-90                12/1/00

In addition, the NFL announced a settlement in a proceeding involving allegations

that in 1997 the San Francisco 49ers and two of their former executives had entered into undisclosed agreements with several player agents in violation of the salary cap.

The NFL said it has agreed with the NFLPA to increase the level of sanctions that may be imposed for undisclosed agreements or payments between clubs and players in the following ways:

• The Commissioner will now have authority under the Collective Bargaining Agreement to suspend, for up to one year, any club executive found to have entered into an undisclosed agreement or payment.

• The Commissioner will now have authority to impose a fine of up to $3.5 million (previously $2 million) on any club found to have entered into an undisclosed agreement or payment.

• The Commissioner will now have authority under the Collective Bargaining Agreement to require the forfeiture of two first-round draft choices by any club found to have entered into an undisclosed agreement or payment.

• The level of fines will increase proportionally with future increases in DGR (Defined Gross Revenues).

The CBA also allows the Commissioner to fine individual club personnel up to $250,000 each for their role in an undisclosed agreement; players and agents found to have committed such a violation may be fined by the CBA Special Master up to the same amount.

The settlement announced today addresses allegations that the 49ers, under prior ownership and management, had entered into undisclosed agreements with certain player agents regarding player compensation.

The principal issues involved allegations of an undisclosed agreement concerning

the duration and incentive provisions of quarterback Jim Druckenmiller’s rookie contract; allegations of an undisclosed agreement concerning the duration of a player contract signed by linebacker Lee Woodall in 1997; allegations of an undisclosed commitment made to tight end Brent Jones in 1997, and a related undisclosed payment made to Jones in 1998, following his retirement; and allegations of an undisclosed agreement made in 1997 between the agent for 49ers quarterback Steve Young and the club regarding Young’s future compensation.

The settlement includes the following:

• Former 49ers executives Carmen Policy and Dwight Clark, without admitting any wrongdoing, agreed to pay a total of $600,000 ($400,000 for Policy; $200,000 for Clark) in order to settle their role in the dispute.

• The 49ers agreed to forgo two draft choices – its fifth selection in the 2001 draft and its third selection in the 2002 draft – and to make a payment of $300,000 as part of the settlement.

• The 49ers agreed to recognize a commitment of $483,000 that the club’s prior ownership and management made to Brent Jones.

• The NFLPA agreed that the two player representation agencies involved in the alleged violations - - Steinberg & Moorad, and Gary Wichard - - would pay substantial fines to settle the claims against them.

For the past year, the 49ers have cooperated fully and constructively with the investigation. There was no allegation that current 49ers ownership or management was involved in any of the conduct at issue. The players and the player agents denied any wrongdoing.

Harold Henderson, the NFL’s executive vice president for labor relations, said the NFL was satisfied with these developments.

"Under our new agreement with the Players Association for stiffer penalties and enforcement, future issues of cap violation will not be settled," Henderson said. "Such cases will be prosecuted to a conclusion before the Special Master, and a violation will be subject to discipline under the significantly increased sanctions authorized by today’s agreement. This new agreement also eliminates the uncertainties and risks associated with litigating to a conclusion the types of complex issues raised in the 49ers case."