Report: Redskins, Cowboys lose appeal on salary cap penalty

The Washington Redskins and Dallas Cowboys lost their appeal over salary cap penalties, according to a tweet from the New York Times reporter Judy Battista. The tweet cites the NFL’s Jeff Pash.

Pash announces Cowboys/Redskins appeal of salary cap issue rejected by Burbank. Dismissed.

— Judy Battista (@judybattista) May 22, 2012

The Redskins will lose $36 million in cap space over the next two seasons, and Dallas will lose $10 million.

The two teams were penalized for trying to gain an unfair advantage from the way they structured contracts during the uncapped season that preceded the NFL’s lockout.

The teams appealed to arbitrator Stephen Burbank, arguing that they did not violate the salary cap rules, but that appeal failed.