Getting a Headache about NFL Antitrust?
The Supreme Court is hearing a major business case this week that debates the extent of its so-called “limited” antitrust exemption. The case is American Needle vs. NFL and if you’re like most of us, it’s hard to understand the details and importance of what ruling might come out of this case. A small clothing manufacturer – American Needle – was kicked to the curb when they lost their license to manufacture caps and jackets with NFL team logos. Reebok – a subsidiary of global athletic wear manufacturer Adidas – currently has the world rights to manufacture any and all licensed NFL wear and oversees a $3.2 billion+ market (2007) from selling NFL gear exclusively.
…
On one hand, you have the NFL licensing broadcast rights to any and every channel – cable, satellite or even online – who wants to broadcast their games. Then on the other hand, they chose to go with one manufacturer to produce all NFL-branded clothing and gear. Does that even make any business sense or does someone have side benefits from this exclusive relationship? If the League (and its owners) actually manage to succeed in extending their monopolistic antitrust franchise, will it be placing too much power and control in their hands? And what consequences will that have on other sports leagues who are obviously watching this case with great interest? And how about other global corporations that are also benefiting from antitrust exemptions?
…
Here’s a short video clip from ESPN that summarizes it in under 3 minutes if you don’t want to read about it:
…
…
And for those who like to read, here are just a couple of the better pieces that have come out over the past week. The first link is from blogger Vic Masor and it’s one of the simplest pieces on why the NFL should NOT be given this much power.
…
Sports, Antitrust, and NFL Immunity
In the USA, we are used to watching our favorite sports teams compete against one another for the right to earn a championship. The reason we watch these varies, but the underlying reason is the spectacle of competition. The players and the teams they play for work very hard to “defeat” the other players and/or teams.
…
Read the rest of this easy-to-understand summary by clicking HERE.
…
Why American Needle-NFL is most important case in sports history
…
On Wednesday, the United States Supreme Court will hear arguably the most important sports law case in U.S. history and one that could dramatically reshape how the NFL and other leagues conduct their business.
…
The facts of American Needle v. NFL are simple. From the late 1970s to 2000, apparel maker American Needle enjoyed a licensing contract with NFL Properties, a business which controls the NFL’s licensing contracts (such as for the use of NFL logos on clothing and in video games). NFL Properties is equally owned by the 32 NFL teams, which share its revenue. Other apparel companies had similar licensing contracts with NFL Properties.
…
Read the rest of Michael McCann’s Sports Illustrated article by clicking HERE.
…
Threading ‘American Needle’: Could It Destroy Free Agency in the NFL?
…
Lots and lots of ink has been spilled over this so-called “American Needle” case, which is slated to be argued Wednesday at the U.S. Supreme Court.
…
For good reason. At stake is the degree to which Section 1 of the Sherman Antitrust Act applies to the NFL and other sports leagues. In answering the question, much could turn on how the league is viewed — as single entity or a collection of 32 separate entities (i.e. teams). A finding that the league is considered 32 entities will likely render a ruling that the act does apply and the NFL is constrained from taking certain unilateral actions. A ruling that the league is a single entity will likely yield the opposite result, and give the NFL a lot more leeway. For more background, click here for a nice writeup from Marc Edelman at Above the Law (love that Web site, Marc!); here for a writeup in Sports Illustrated from Vermont Law School professor Michael McCann. (Click here, as well, for a recent article by McCann on the case, from the Yale Law Journal.)
…
Read the rest of this article from the Wall Street Journal by clicking HERE.
…
CSpan2 has it on their schedule for viewing tonight at 8:45 pm EST.…
…
Tweets that mention Getting a Headache about NFL Antitrust? - Dave Pear's Official Blog -- Topsy.com
January 14th, 2010 at 4:49 AM #
[...] This post was mentioned on Twitter by RobertinSeattle, JP54, Donny Avery, Hal Nadler, Isaac Barber and others. Isaac Barber said: Getting a Headache about NFL Antitrust? – Dave Pear's Official Blog: NFL and if you're like most of us,.. http://bit.ly/5u6jGs [...]