Press Release
| May 25, 2010
Dewey & LeBoeuf Represents NFLPA and NBPA in Landmark Ruling
(New York, May 24, 2010) — In one of the most important sports law cases in decades, the Supreme Court ruled unanimously against the National Football League (NFL) in its bid to be viewed as a single enterprise immune from antitrust scrutiny.
In reversing an appellate court’s prior ruling, the Court found that the 32 NFL teams do not act as a “single entity” such that they are completely exempt from Section 1 of the Sherman Act. Specifically, in a 9-0 decision, the Court held that NFL teams do not possess the “complete unity of interest” necessary for an exemption. Instead, each team is a separately-owned business entity competing vigorously against the others, both on the field and off.
The case was brought by American Needle, an apparel maker from Illinois, that lost its contract with the league when the NFL entered into an exclusive 10-year, $250 million deal with Reebok in late 2000 to produce league-branded merchandise. American Needle’s suit claimed that the teams of the NFL colluded to limit competition in violation of the antitrust laws.
The NFL Players Association and NBA Players Association, both represented by Dewey & LeBoeuf, joined with the players unions from all of the major professional sports to file a first-of-its-kind joint amicus brief opposing the NFL’s position in the matter.
The Dewey & LeBoeuf team was led by Partners Jeffrey Kessler and David Feher, who co-chair the firm's Sports Litigation Practice, as well as Partner David Turetsky. Counsel Robin Moore played a significant role in the briefing process.
The ruling came in the case American Needle Inc. v. National Football League. Although the case arose from an apparel license, the decision has a broad impact on the business of the NFL as a whole, ranging from the price of tickets to free agency.
This memorandum is intended only as a general discussion of these issues. It is not considered to be legal advice. We would be pleased to provide additional details or advice about specific situations. For additional information on this important topic, please feel free to call upon your Dewey & LeBoeuf relationship partner. No part of this publication may be reproduced, in whole or in part, in any form, without our prior written consent.
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