Cardinals Ordered by NFL Arbitrator to Pay $3M to Former Exec Terry McDonough

The Arizona Cardinals were ordered by an NFL arbitrator to pay $3 million to former front-office executive Terry McDonough for "false and defamatory" statements made about him to the media, per ESPN's Tisha Thompson.

A decision filed in federal court on Monday revealed that Jeffrey Mishkin, the arbitrator appointed by NFL Commissioner Roger Goodell, ruled that the Cardinals and owner Michael Bidwill defamed McDonough "with malice" by accusing him of spousal abuse and neglect of his disabled adult daughter in a multi-page statement to media organizations. McDonough has denied those allegations.

"Despite what we consider to be a fundamentally unfair arbitration process, Terry McDonough is the first person ever to win against an NFL owner," McDonough's attorney, Mike Caspino, said in a statement about Monday's court filing. "Why the NFL has not held Michael Bidwill accountable remains a mystery."

McDonough's other claims of unlawful retaliation, intentional infliction of emotional distress and invasion of privacy were dismissed by Mishkin. He filed the claim against the Cardinals in April 2023 alleging that he was wrongfully demoted after objecting to a scheme that included the use of "burner phones" to communicate with then-general manager Steve Keim, who was suspended by Bidwill at the time following his DUI arrest.

"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," the team said in a statement. "As for Mr. McDonough's other claim, we respect the arbitrator's determination that our initial statement went too far. We accept responsibility for that statement and are grateful that the arbitration is now resolved."

McDonough, who worked in the Cardinals front office for 10 seasons, originally sought $15 million in lost future earnings, $10 million for emotional distress, $10 million for reputational harm and $60 to $90 million in punitive damages, per the arbitration ruling. He wound up receiving $2.25 million in punitive damages, $600,000 in compensation for emotional distress and $150,000 in compensation for harm to his reputation.

Mishkin found that the team did use burner phones, but he didn't rule in favor of McDonough's assertion that he was prevented from being hired as a general manager in the NFL.

"In publicly attacking Mr. McDonough's personal character by publishing false and defamatory statements entirely unrelated to matters at issue in the arbitration was unjustified in the circumstances and is deserving of punishment," Mishkin stated.

McDonough is also facing an allegation of choking his neighbor during an incident last month. He has a court appearance scheduled for April 11.