Report: Cap Penalty Appeal Denied

Some 12 days after the Cowboys, Redskins and NFL presented their respective cases, arbitrator Stephen Burbank has apparently decided the two teams have no grounds to appeal the $46 million in salary cap penalties levied against them by the NFL.

Daniel Kaplan of Sports Business Journal reports that league counsel Jeff Pash has told him the teams' petition for an appeal has been rejected.

Just before the salary cap was set in March, the NFL subtracted $10 million from the Cowboys' budget over the next two seasons, and $36 million from division rival Washington on the grounds that the clubs' funneling of guaranteed money into 2010 budget went against the spirit of the uncapped season.

The Cowboys accepted $5 million of the penalty in 2012, and will pass off the remaining $5 million into next season.

Despite the adjustment, the Cowboys signed more unrestricted free agents than ever before. However, owner and general manager Jerry Jones said the team was forced to load more guaranteed money into the coming years.

The $46 million in free cap space was distributed evenly to 29 other teams.

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