Case In Point
Landmark Arbitration Decision Upholds Indefinite Suspension of CFL Player for Sports Gambling
Date: September 4, 2024
On August 27, 2024, Arbitrator Allen Ponak upheld an indefinite suspension imposed on Shawn Lemon, a veteran defensive end in the Canadian Football League (CFL), for wagering on CFL games in 2021, including a game in which he played. This decision highlights the complexities of player conduct in professional sports and raises important questions about the legalization of sports betting and the reputational risks to a professional sports league. Notably, it marks the first instance in North American professional sports where a player or union has challenged a gambling-related penalty imposed by the commissioner.
Background
Since joining the CFL in 2011, Shawn Lemon has been a stellar player, contributing to three Grey Cup victories and earning recognition as a finalist for defensive player of the year. Prior to playing in the CFL, he played in the National Football League (NFL) and the National Collegiate Athletics Association (NCAA).
In November 2021, as a member of the Calgary Stampeders, he placed a total bet of 73.46 euros on two CFL games: one between the Hamilton Tiger-Cats and the Toronto Argonauts, and the second featuring the Lions and Calgary Stampeders, in which he played. His first bet was unsuccessful, rendering the second moot. He bet on the point spread in both games.
The CFL became aware of Lemon’s wager in February 2024 through the International Olympic Committee (IOC), which was conducting a broader review of sports betting activities. After investigating, during which Lemon admitted to placing the bet, the CFL imposed an indefinite suspension on him on April 24, 2024. The Canadian Football League Players’ Association (CFLPA) immediately filed a grievance against the league.
Lemon’s Defense
Lemon described his actions as a “foolish mistake,” driven more by a desire for fun than an intent to violate policies.
Lemon contended that he had not been adequately informed of the gambling rules at the time he placed his bet. According to Lemon, prior to the 2022 season, he had received no information or education about the CFL’s gambling rules, and there were no training modules or notices posted anywhere. He stated that the anti-gambling rules had not been clearly communicated during the 2021 season. Furthermore, he testified that he saw nothing wrong with betting on a game in which he was an active participant.
Lemon requested immediate reinstatement, suggesting that a fine of $1,000 would be a more appropriate penalty than an indefinite suspension. Lemon claimed to express genuine remorse for his actions and cited his desire to continue playing in the CFL.
The CFL’s Position
The CFL argued that Lemon’s decision to bet on CFL games, including a game he participated in, constituted a serious breach of league rules, undermining the integrity of the league. The CFL emphasized the importance of strict adherence to anti-gambling policies, noting that previous violations in other leagues and sports had led to lengthy suspensions or lifetime bans. The league maintained that Lemon’s grievance should be denied.
The CFL argued that the standard of review should not be the typical “just cause” assessment used in most discipline cases under collective agreements. Instead, it should be whether the commissioner acted “judiciously and reasonably” under the specific provisions of the CFL Constitution, by-laws, regulations and the Standard Player Contract (SPC).
Moreover, the CFL contended the league emphasized that the rules prohibiting gambling had been clearly communicated through annual training camp announcements, notices on team bulletin boards, and multiple memos to the CFLPA over several years.
Arbitrator’s Analysis
Arbitrator Allen Ponak was tasked with determining whether the commissioner acted “judiciously and reasonably” in imposing an indefinite suspension.
The arbitrator found the collective bargaining agreement and CFL constitution granted the commissioner considerable discretion in determining discipline for gambling. The arbitrator upheld the CFL’s position, deeming that the severity of the violation warranted the indefinite suspension. In the arbitrator’s view, protecting the reputation of the CFL and deterrence were reasonable objectives in determining the appropriate disciplinary response.
The arbitrator noted that betting by players on their own league is “one of the most serious acts of misconduct that a player can commit.” It has the potential of undermining the integrity of the league and destroying the confidence of the public that the outcome of a game is a reflection of the quality of the team and its players and not a reflection of wagers that players have made.
Although the communication of the gambling rules in 2021 was noted to be less than ideal, it did not lead to a conclusion that the indefinite suspension was unreasonable or injudicious. The indefinite suspension was found to fall within the range of reasonable responses open to the commissioner, which ultimately led the arbitrator to deny the grievance and uphold the indefinite suspension.
In fact, the arbitrator stated the following in his award:
“Even if the Grievor did not receive express information on gambling prohibitions in 2021, I still find it incomprehensible that the Grievor would be unaware as a veteran football player who played in the NCAA, the NFL and the CFL, that betting on league games, let alone a game in which you were playing, was completely out-of-bounds.”
Key Takeaways
The decision exemplifies the challenges professional sports leagues face in enforcing gambling regulations. For athletes like Lemon, this case serves as a cautionary tale about the potential ramifications of decisions in a highly regulated environment. It is clear that the CFL, like other professional sports leagues, is committed to maintaining the integrity of its game. Lemon’s penalty serves as a reminder that gambling on league games as a professional athlete playing in the league constitutes severe misconduct.
The Canadian Football League was represented by Hicks Morley’s Stephen J. Shamie and Diane Harbin.
The article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Hicks Morley Hamilton Stewart Storie LLP and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Hicks Morley Hamilton Stewart Storie LLP. ©
