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NFL vs. American Needle


MattFancy

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The Supreme Court on Wednesday didn't seem interested in immediately granting the National Football League the broad antitrust law protection the league is seeking.

Justices seemed skeptical of arguments that the NFL should be considered one business, not 32 separate teams working together, when it comes to selling NFL-branded items. The lower courts had thrown out an antitrust lawsuit brought against the league by one of its former hat makers.

American Needle, Inc. appealed the dismissal to the Supreme Court. But the NFL also appealed, hoping to get broader protection from antitrust lawsuits.

Major League Baseball is the only professional sports league with broad antitrust protection. The National Basketball Association, the National Hockey League, the NCAA, NASCAR, professional tennis and Major League Soccer are supporting the NFL in hopes the court will expand broad antitrust exemption to other sports.

http://sports.espn.go.com/nfl/news/story?id=4822872&campaign=rss&source=ESPNHeadlines

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Hopefully the SC doesn't give the NFL antitrust protection

Yea its a little late in the game for another league to come in and try to compete. The NFL attracts the top talent so there is no way for a league to financially support itself long enough to be able to steal some talent from the NFL. Its almost impossible for competition to spring up and I thought this country was against monopolies?

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Yea its a little late in the game for another league to come in and try to compete. The NFL attracts the top talent so there is no way for a league to financially support itself long enough to be able to steal some talent from the NFL. Its almost impossible for competition to spring up and I thought this country was against monopolies?

Its not so much the competition from other leagues, its the fact that they'll be able to push player salaries down, while the owners could do anything that wanted. They go raise ticket prices, concession prices, merchandise prices, etc. It would hurt free agency too. Plus if the other leagues see that the NFL can do all this, why wouldn't they try.

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Its not so much the competition from other leagues, its the fact that they'll be able to push player salaries down, while the owners could do anything that wanted. They go raise ticket prices, concession prices, merchandise prices, etc. It would hurt free agency too. Plus if the other leagues see that the NFL can do all this, why wouldn't they try.

Yet baseball already has this protection and their player salaries are insane. People will control ticket, concession and merchandise prices because if it gets to be too expensive, people will stop buying them. And if the players feel the situation is too bad, they do not have to play. That actually would allow for another league to start up and attract some top talent. I dont think this will have as much impact as you think. I just think if things remain somewhat constant, no league could ever compete with the NFL so you essentially have a monopoly.

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  • 4 months later...

http://deadspin.com/5546273/supreme-court-rules-against-nfl-in-antitrust-case-what-it-all-means

So the NFL didn't win its case against American Needle.

This article from Deadspin explains what it means to the NFL, NFLPA, other sports leagues, and licensing.

American Needle doesn't actually score a victory here, at least, not yet. The case merely returns to district court, where it will be reconsidered under what's called the "Rule of Reason." A doctrine dating back to Standard Oil, it states that monopolies aren't inherently illegal, only if they "unreasonably" restrain trade. That's still up for debate with the NFL's licensing deals, and the Supreme Court gave no indication on that one way or another.

The NFLPA wins big. They had been terrified of a league with unchecked power to act unilaterally in labor issues, especially with an expiring CBA. Not that the player's union is particularly powerful as is, but at least the league won't be able to dictate salaries, free agency conditions and age restrictions without getting into the CBA first. If the NFL had won this case, those would all have been very real possibilities.

The NFL doesn't so much lose as they fail to win. The league had been hoping for that antitrust exemption, which would have been a hammer to bring down in myriad smaller cases against the league. It would have given them sweeping powers enjoyed by no other business other than Major League Baseball. Now, those other cases proceed on their own merits.

Other sports leagues are not happy right now. Both the NBA and NHL filed amicus briefs in support of the NFL, hoping the precedent would give them more powers. With the NHL recently having to bail out a handful of teams, and a labor stoppage looming for the NBA, it could have been big. NASCAR, MLS, and most chillingly, the NCAA also publicly supported the NFL.

Baseball, on the other hand, still enjoys the country's only antitrust exemption, dating back to a 1922 ruling that's considered curious today. There's no indication the High Court would revisit that ruling, but should it be challenged there's certainly a precedent for it now. A limited one, however; American Needle v. NFL appears to apply specifically to merchandising.

Reebok, and, yes, the Madden series of video games, along with every company that has exclusive licensing deals with the league, could be the biggest losers. The NFL is a money factory, and even given the huge payments for exclusive rights, everyone selling NFL products are making out like bandits. Should the district court find the league in violation of antitrust laws, the field would be open again for other manufacturers. Any final decision is still a ways off, but NFL 2K12 is now a distinct possibility.

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Simple answer? It's a complicated discussion that the average fan doesn't want to tackle. Yet average fans will have a 20 page thread on Tiger Woods' mistresses.

In defense of the average fan, who can understand the "LAWS". A person can barely do their taxes without legal assistance. And heaven forbid should you go to any court without representation. Even traffic court is a gamble without a lawyer.

My point is, it's complicated anytime you start discussing what is and isn't legal

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I'd just be happy to be able to buy an affordable Skins jersey, good quality, without having to get a Korean or Chinese knock-off.

It sounds like the more marketable teams could form their own apparel marketing deals on the side. If that happens, that could take a lot of money out of the "collective" pot that's shared by all 32 teams of the league.

Essentially it sounds like if you have a group of 32 teams, as opposed to a league with 32 parts, then each team would have a say in how to market it's franchise.

Teams like the Skins, Cowboys, Raiders, etc. could really cash in on this. Bills, Lions, Cardinals and the like, probably not so much. But that's just my speculation.

In light of the current cloud over the upcoming end of the current CBA, this could cause division with the 32 teams, who up to now, have appeared very united.

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Wondering exactly what anti-trust has to do with this lawsuit in the first place.

AN isn't barred from infringing NFL trademarks because the NFL is a monopoly. They're barred from infringing them because they're trademarks.

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Wondering exactly what anti-trust has to do with this lawsuit in the first place.

AN isn't barred from infringing NFL trademarks because the NFL is a monopoly. They're barred from infringing them because they're trademarks.

Isn't it the same reason that anti-trust laws would come into play if the big oil companies colluded with one another to set the price of oil and all contracted through the same distributors but did so under a "league umbrella" say the BOL (Big Oil League)?

Frankly I think this is great news, and I hope when the lower courts finish this up that we'll see some real competition in the jersey and apparel market, since there is NO competition now and prices are outrageous.

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Isn't it the same reason that anti-trust laws would come into play if the big oil companies colluded with one another to set the price of oil and all contracted through the same distributors but did so under a "league umbrella" say the BOL (Big Oil League)?

Frankly I think this is great news, and I hope when the lower courts finish this up that we'll see some real competition in the jersey and apparel market, since there is NO competition now and prices are outrageous.

Jersey prices are ridiculous. When CP signed with the Skins I bought his jersey off $65, now that same jersey is $80. How is that? I'm going to guess because Reebok is the only one that is allowed to make jerseys. Same with hats. I'm not paying $25 for a crappy looking hat.

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Jersey prices are ridiculous. When CP signed with the Skins I bought his jersey off $65, now that same jersey is $80. How is that? I'm going to guess because Reebok is the only one that is allowed to make jerseys. Same with hats. I'm not paying $25 for a crappy looking hat.

$25! Heck when I was in DC my son and I got the official Draft Day hats and they were over $30. I couldn't afford to get a jersey which were at or near $100 each for a replica, and forget the authentics. That and there is little to no variety with the official hats, I can't wait for some solid competition.

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$25! Heck when I was in DC my son and I got the official Draft Day hats and they were over $30. I couldn't afford to get a jersey which were at or near $100 each for a replica, and forget the authentics. That and there is little to no variety with the official hats, I can't wait for some solid competition.

I agree, think if New Era could make hats. New Era makes some of the best hats around. The Reebok hats are way too bland and boring. Its ourtageous how much the jerseys have increased over the last few years when nothing has changed with them.

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I agree, think if New Era could make hats. New Era makes some of the best hats around. The Reebok hats are way too bland and boring. Its ourtageous how much the jerseys have increased over the last few years when nothing has changed with them.

And I dare you to buy and official NFL sized cap! Good grief what is up with the elastic hats..grrr. I've got a rock for a head and wear a 7 3/4 and do you think they make those elastic things to fit my melon...heck no! I had two days worth of head aches until I got mine broken in.

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And I dare you to buy and official NFL sized cap! Good grief what is up with the elastic hats..grrr. I've got a rock for a head and wear a 7 3/4 and do you think they make those elastic things to fit my melon...heck no! I had two days worth of head aches until I got mine broken in.

I bought a fitted with the flat brim and they only come in small, medium, or large. I need like a smedium, so needless to say, it doesn't fit that great.

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I bought a fitted with the flat brim and they only come in small, medium, or large. I need like a smedium, so needless to say, it doesn't fit that great.
Flat brim....BAH heaten!!!

I remember when all hats came with a flat brim. Back in Little league you had to break the brim of the hat in. Who would have ever thunk wearing them flat would catch on.

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I remember when all hats came with a flat brim. Back in Little league you had to break the brim of the hat in. Who would have ever thunk wearing them flat would catch on.

Tell me about it, I'm not sure, but aren't flat brimmed hats constructed to fit better flat rather than curved?

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