Cardinals Forced to Pay Millions in Damages to Former Front Office Executive.

An NFL arbitrator ordered the Arizona Cardinals to pay former executive Terry McDonough $3 million on Monday in a decision filed in federal court.¹ The Cardinals were ordered to pay McDonough this money for false and defamatory comments made by the Cardinals and their owner, Michael Bidwill.

McDonough brought the defamation claim back in April 2023, along with other claims, including gross misconduct, cheating, discrimination, and harassment.² External public relations adviser to the Cardinals Jim McCarthy stated, “We are reluctantly obliged to provide a public response along with broader context for some disappointing and irresponsible actions by Terry McDonough”³ in response to the arbitration claim filed by McDonough.

On Monday, Jeffrey Mishkin, the arbitrator appointed by NFL Commissioner Roger Goodell, ruled that all the claims against the Cardinals and Bidwell, except for defamation, should be thrown out. Tisha Thompson of ESPN laid out the claims which Mishkin found were made with malice: “In a 62-page decision dated March 29, Jeffrey Mishkin, the arbitrator appointed by NFL commissioner Roger Goodell, determined the Cardinals and their owner, Michael Bidwill, defamed McDonough ‘with malice’ in a multipage statement to media organizations that accused McDonough of spousal abuse and neglect of his disabled adult daughter — allegations McDonough has denied.”⁴

Following the ruling, both sides released official statements regarding the decision. Terry McDonough’s attorney, Mike Caspino, stated, “Despite what we consider to be a fundamentally unfair arbitration process, “Terry McDonough is the first person ever to win against an NFL owner,…..Why the NFL has not held Michael Bidwill accountable remains a mystery.”⁵  Meanwhile, the Arizona Cardinals stated: “We are pleased with the arbitrator’s decision dismissing all of Terry McDonough’s employment claims and finding that there was nothing improper about his dismissal from the team.”⁶

This ruling, however, was not the final litigious news involving the story this week. On Wednesday, McDonough filed a civil lawsuit in Maricopa Superior Court for defamation, negligence, and intentional infliction of emotional distress.⁷ Along with the Cardinals and Bidwell, Counterpoint Strategies and the company’s executive, Jim McCarthy, and the law firm of Gallagher & Kennedy are also named as defendants.⁸

Referencing his statement from earlier in the week, it seems that Casino and McDonogh deliberately filed suit in state court to assert the claims against the Cardinals in a neutral forum.  In a statement, Caspino reiterated, “We look forward to presenting our case to a jury, where Bidwill and the Cardinals will no longer enjoy the protection of the NFL’s rigged arbitration system.”⁹

1. Former Arizona Cardinals VP Terry McDonough awarded $3 million for defamation – Yahoo Sports ↩︎
2. Ex-Cardinals VP Terry McDonough accuses owner of cheating – ESPN ↩︎
3. Id. ↩︎
4. Cardinals ordered to pay ex-VP Terry McDonough $3M for defamation – ESPN ↩︎
5. Id. ↩︎
6. Former Cardinals executive sues team, Michael Bidwill after arbitration award – The Washington Post ↩︎
7. Former Cardinals exec Terry McDonough files civil suit against team (usatoday.com) ↩︎
8. Id. ↩︎
9. Id. ↩︎