TEMPORARY RESTRAINING ORDER
This matter is before the court on plaintiffs’ motion for a temporary restraining order and preliminary injunction to prohibit defendants from continuing to restrict plaintiffs pursuant to the Right of First Refusal/Compensation Rules of Plan B. Based on a review of the file, record and proceedings herein, the court grants plaintiffs’ motion for a temporary restraining order and defers ruling on their motion for a preliminary injunction.
BACKGROUND
Plaintiffs are professional athletes who have been employed by various member teams of the National Football League (“NFL”). Plaintiffs bring the present action seeking relief for injuries that they allegedly have suffered as a result of defendants’ Right of First Refusal/Compensation Rules of Plan B (“the Plan B rules”). Plaintiffs’ contracts with their respective teams all expired as of February 1, 1992. By operation of the Plan B rules, as of April 1, 1992, all of the plaintiffs’ former teams gained the exclusive rights to plaintiffs’ services. 1 At the time the present suit was filed, September 14, 1992, all ten players remained restricted under those rules.
As of the date of this order, September 24, 1992, only four players remain restricted by the Plan B rules: Keith Jackson, Webster Slaughter, D.J. Dozier and Garin Veris. Of the remaining six players, Thomas Everett was traded and has subsequently signed a contract for the 1992 season. Natu Tuatagaloa, Louis Lipps and Leon White were released by their former clubs and have subsequently signed contracts with new clubs for the 1992 season. Ste-phone Paige and Joseph Phillips were also released by their former clubs, and at the present time remain unrestricted free agents.
The four players who remain restricted under the Plan B rules contend that they are entitled to injunctive relief because they have suffered and continue to suffer immediate, irreparable harm for which monetary damages are inadequate. Relying on the jury’s findings in the McNeil case 2 as the basis for the application of the *229 doctrine of collateral estoppel, plaintiffs also contend that they demonstrate a substantial likelihood of success on the merits of their claims, and thus ask the court to grant the requested relief.
DISCUSSION
The court considers four factors when determining whether to issue either a temporary restraining order or preliminary injunction:
1. The probability that the movant will succeed on the merits of its claims;
2~ The threat of irreparable harm to the movant if the requested relief is denied;
3. The balance between the harm to the movant if injunctive relief is denied and the injury that will result if such relief is granted; and
4. The public interest.
Dataphase Sys., Inc. v. CL Sys., Inc.,
A. Probability of Success on the Merits
Plaintiffs rely on the doctrine of collateral estoppel to demonstrate a likelihood of success on the merits of their claims. See, e.g., Truck Drivers, Local. 705 v. Almarc Mfg., Inc.,
Collateral estoppel is appropriate where:
1. The issue was identical to one raised in a prior adjudication;
2. There was a final judgment on the merits;
3. The estopped party was a party or in privity with a party to the prior adjudication; and
4. The estopped party was given a full and fair opportunity to be heard on the adjudicated issue.
See, e.g., Oldham v. Pritchett,
1. Whether a plaintiff is being rewarded for failing to join in the prior action;
2. Whether the defendants had an incentive to litigate the, first action "fully and vigorously"; and
*230 3. Whether there are any procedural opportunities available to defendants in the second action that were not available to them in the first action of a “kind that might be likely to cause a different result.”
Turning to the additional factors relevant to offensive use of collateral estoppel, the court determines that such use will not improperly reward plaintiffs for their failure to join in the McNeil litigation. The court further concludes that the NFL defendants had significant incentive to fully litigate the legality of the Plan B rules in McNeil. Finally, defendants’ procedural opportunities are similar to those in McNeil, and thus not likely to create a different result in. the present action.
Even if the court were to determine that the doctrine of collateral estoppel does not apply, the court nonetheless concludes, after hearing all of the evidence and arguments in the
McNeil
case, that plaintiffs demonstrate a substantial probability of success on the merits of their claims.
See, e.g., Smith v. Pro Football, Inc.,
Based on the foregoing, the court concludes that this factor tips in favor of granting plaintiffs’ motion for injunctive relief.
B. Threat of Irreparable Harm
The court also determines that the four players who remain restricted by the Plan B rules make á sufficient showing of irreparable harm because they suffer irreparable injury each week that they remain restricted under an illegal system of player
*231
restraints.
5
See Powell v. National Football League,
Based on the foregoing, the court concludes that the four players who remain restricted under the Plan B rules have adequately demonstrated a threat of irreparable harm. See Powell,
C. Balance of Harm Between the Parties
Defendants contend that if the court grants the requested injunctive relief, *232 competitive balance between the NFL teams will suffer. 8 They also argue that such relief will significantly injure the teams that are currently restricting the remaining four players. 9 They claim that if the court were to grant a temporary restraining order, the four teams may incur harm resulting from the loss of the four players’ services. 10 The court notes, however, that if the four players do change teams, such trades will likely have little impact on the overall competitive balance of the league. 11 Moreover, defendants have no justifiable interest in continuing to violate the Sherman Act by preserving an illegal status quo. In balancing any hardship to defendants against plaintiffs’ harm if the requested relief is denied, the court finds that plaintiffs stand to suffer the greater harm and thus this factor favors injunctive relief.
D. The Public Interest
The court finally concludes that the public interest strongly favors the granting of plaintiffs’ injunctive relief because such relief fosters the policies underlying the Sherman Act and does not undermine the policies of labor law. Moreover, although mandatory injunctive relief is rarely granted absent compelling circumstances, the court finds that this case presents such compelling circumstances, and that granting such relief may encourage, rather than stifle, settlement.
See, e.g., Citizens Concerned for Separation of Church and State v. City and County of Denver,
Defendants also contend that the Norris-LaGuardia Act, 29 U.S.C. §§ 101-15, bars any injunctive relief in the present case. That Act limits federal courts’ jurisdiction to issue injunctive relief in cases “involving or growing out of a labor dispute” and specifically prohibits any injunctive relief “contrary to the public policy declared” in the Act. 12 29 U.S.C. § 101. The Act defines public policy in “labor matters” as follows:
Whereas under prevailing economic conditions, developed with the aid of govern *233 mental authority for owners of property to organize in the corporate and other forms of ownership association, the individual unorganized worker is commonly helpless to exercise actual liberty of contract and to protect his freedom of labor, and thereby to obtain acceptable terms and conditions of employment, wherefore, though he should be free to decline to associate with his fellows, it is necessary that he have full freedom of association, self-organization, and designation of representatives of his own choosing, to negotiate the terms and conditions of his employment, and that he shall be free from the interference, restraint, or coercion of employers of labor, or their agents, in the designation of such representatives or in self-organization or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection; therefore, the following definitions of and limitations upon the jurisdiction and authority of the courts of the United States are enacted.
Id. § 102. Thus, the Act seeks to protect: the rights of employees to organize into unions and to engage in ‘concerted activities for the purpose of collective bargaining or other mutual aid or protection.’
Allen Bradley Co. v. Local Union No. 3, Int’l Bhd. of Elec. Workers,
Denying injunctive relief in the present case may actually subvert the labor policies set forth in the Act. As the court previously stated, the players sacrificed their union representation and the protection of the labor laws to pursue their antitrust remedies.
Powell and McNeil,
Defendants also rely on prior rulings by this court in Powell v. National Football League to support their contentions. 15 Although this court previously held that the Act barred injunctive relief in the Powell litigation, that decision reflected the court’s determination that:
granting the players a preliminary injunction to secure unrestricted free agency would wholly subvert the collective bargaining process and thereby offend a central purpose of the Norris-LaGuardia Act.
In denying injunctive relief in Powell, the court further reasoned that:
[I]t would be highly destructive to collective bargaining if major issues could be removed from the bargaining table and preliminarily resolved in isolation in antitrust litigation.
Id. Moreover, the court specifically limited its decision in Powell, stating that the determination did:
not provide the system of player restraints extended immunity to the antitrust laws. The Court’s ruling merely denies injunctive enforcement of the antitrust laws until after a final resolution on the merits.
Id.
at 817 n. 9. The present case, however, is clearly distinguishable from
Powell
as a result of the court’s subsequent determination that the nonstatutory labor exemption terminated after the players abandoned their union,
Powell and McNeil,
Based on the foregoing, the court concludes that granting the requested injunc-tive relief is not “contrary to the public policy” declared in the Norris-LaGuardia Act, and thus the Act does not preclude such relief.
Even if the court were to apply the Act to the present case, injunctive relief may still issue based on an evaluation of the traditional factors underlying such relief: the threat of substantial and irreparable harm to movant’s property, the existence of no adequate remedy at law and the balance of harms favoring injunctive relief. See 29 U.S.C. § 107; see supra analyzing same factors under Dataphase. The Act further requires that “unlawful acts have been threatened or will be committed unless restrained.” The court con- *235 eludes that in light of the McNeil case, this requirement has clearly been met. The Act also requires an evidentiary hearing before such relief may issue. Although defendants may argue to the contrary, it is undisputed that they received a full jury trial on the legality of Plan B, and numerous hearings on the labor exemption issue. The court thus concludes that the requirement for a “hearing” has been satisfied for purposes of issuing a temporary restraining order. The court finally concludes there are no public officials whose duties are relevant to the present dispute. Thus, the court determines that the Act does not bar plaintiffs’ request for a temporary restraining order.
Accordingly, IT IS HEREBY ORDERED that:
1. All defendants are temporarily enjoined, for a period of five days from the date of this order, from enforcing the Right of First' • Refusal/Compensation Rules of Plan B against plaintiffs Keith Jackson, Webster Slaughter, D.J. Dozier, and Garin Veris;
2. A1Í defendants are temporarily enjoined, for a period of five days from the date of this order, from enforcing any other rules or agreements that restrict plaintiffs Keith Jackson, Webster Slaughter, D.J. Dozier, and Garin Veris from freely negotiating and entering into contracts with any NFL club for the 1992 NFL season;
3. This order shall be effective upon plaintiffs’ filing with the court one $10,000 bond, pursuant to Federal Rule of Civil Procedure 65(c), for the payment of such costs and damages as may be incurred by defendants if it should be determined that defendants have been wrongfully enjoined; and
4. The court will defer ruling on plaintiffs’ motion for preliminary injunctive relief until after it conducts an evidentiary hearing on that matter. The evidentiary hearing shall be held on September 29, 1992, at 1:30 p.m.
Notes
. As this court noted in the Powell litigation:
Under the Right of First Refusal/Compensation system, every NFL club retains rights to “its players" even though, in the case of veteran free agents, contractual rights to a player no longer exist. When a veteran player’s contract has expired and a competing NFL club makes an offer to that player, the player’s old team may keep the player simply by matching the competing offer; the player’s old club therefore is said to have a "right of first refusal" as to the player’s services. If the competing offer is large enough, and the club to which the player was previously under contract does not choose to match a competing offer, the old club will receive draft choice “compensation” which may be extremely costly to the acquiring club. [The Powell ] plaintiffs allege that in addition to restraining player movement, this system effectively eliminated competition among NFL clubs for player services.
Powell v. National Football League,
. The
McNeil
case involved eight professional football players whose contracts expired on February 1, 1990, and alleged injury resulting from their restriction under the Right of First Refusal/Compensation Rules of Plan B for the 1990 and 1991 seasons.
See, e.g., McNeil v. National Football League,
The McNeil case came before the court in a jury trial beginning June 15, 1992. On September 8, 1992, the case was submitted to the jury by way of a special verdict and the jury returned its answers on September 10, 1992. The jury found that the aight of First Refusal/Compensation Rules in Plan B have a substantially harmful effect on competition in the relevant market for the services of professional football players, that those rules significantly contribute to competitive balance in the NFL, but that the rules are more restrictive than reasonably necessary to achieve the objective of establishing or maintaining competitive balance in the NFL.
The jury further found that all of the plaintiffs suffered economic injury as a direct result of the Right of First Refusal/Compensation Rules in Plan B, and determined the following monetary damages (before trebling) as a direct result of those rules: Mark Collhis, $178,000; Don Majkowski, $0; Tim McDonald, $0; Freeman McNeil, $0; Frank Minnifield, $50,000; Niko Nga, $0; Dave Richards, $240,000; and Lee Rouson, $75,000.
After taking the verdict, the court denied on the record defendants' requests to enter judgment in their favor on the issue of the legality of Plan B and to enter judgment in their favor on the claims of the four players whose monetary damage awards were zero.
. See supra note 2.
. The issue of the illegality of the Plan B rules also encompasses various other rulings in
McNeil,
for example, the termination of the non-statutory labor exemption.
Powell and McNeil
v.
National Football League,
. Those four players are Keith Jackson, Webster Slaughter, D.J. Dozier, and Garin Veris. Plaintiffs concede that the remaining si~ players are unable to demonstrate a threat of irreparable harm unless defendants impose another system like Plan B, in which case the two players who are currently without contracts may again be subject to some system of restraint.
. See supra note 2 (detailing jury's findings in McNeil).
. That conclusion is further supported by testimony in the McNeil case.
. As the court instructed the jury in the McNeil case:
According to defendants, competitive balance means that all of the NFL teams are of sufficiently comparable playing strength to provide competitive and high quality games that are close, exciting and well-played, and thus interesting to fans.
McNeil Jury Instruction No. 19.
. Those four teams are the Philadelphia Eagles, the Detroit Lions, the Cleveland Browns and the New England Patriots.
. Those four football clubs, however, are currently without the services of those four players.
. The court acknowledges that the impact may be more severe on four individual teams, but notes that those teams may still be able to negotiate and sign the players after injunctive relief is granted. Moreover, as the court determined in McCourt when evaluating the balance of harms that would flow from enjoining the reserve system in professional hockey:
no [team] is threatened with an injury comparable to [a player's] irreparable harm [if restrained]. The Los Angeles Kings and the California Sports, Inc., have argued valiantly, but unpersuasively, that to deny them [a player’s] services will damage their franchise, that the team will be less proficient, that their record as a team and their reputation in the community will be seriously damaged and that they have already lost the sale of a large number of season tickets.... Defendants may not recover for their inability or their refusal to renew [a player’s] contract through the operation of a provision that violates the antitrust law. Any injury that [a team] may suffer could have been avoided by exercising a greater effort to retain the services of [a player].
.The Norris-LaGuardia Act also prohibits the enjoining of various enumerated activities, none of which are at issue in the present case.
See
29 U.S.C. § 104;
H.A. Artists & Assoc., Inc. v. Actors’ Equity Ass’n,
. For example, the players:
have ... paid a price for the loss of their collective bargaining representative because the NFL defendants have unilaterally changed insurance benefits and lengthened the [football] season ...
Powell and McNeil,
.The court further finds that defendants’ reliance on
Milk Wagon Drivers’ Union, Local No. 753 v. Lake Valley Farm Prod., Inc.,
. The
Powell
litigation involved "a class action challenging player restraints as far back as 1987, including allegations of abuse of monopoly power under Section 2 of the Sherman Act, a challenged to the uniform player contract" and the Right of First Refusal/Compensation Rules of Plan B.
Powell,
. See supra note 2.
