Next week the US Supreme Court will be hearing oral argument in American Needle v. NFL, a case that will have permanent affect on NFL football as a business – which will directly affect fans, players and the game overall.
The issue before the Court is does the NFL constitute just one entity, or 32 independent entities (teams) working together? The lower court ruled that the NFL is one entity, meaning that it can have an exclusive contract with Reebok be the supplier of hats and merchandise for fans, to the exclusion of former NFL apparel manufacturer, American Needle.
Since no other apparel manufacturer can provide NFL merchandise, Reebok essentially has a monopoly, which American Needle argued is a violation of antitrust laws. However, based upon the lower courts’ interpretation of NFL, finding it as just one entity, it does not create a monopoly within itself by having an exclusive business relation with Reebok. Applying this reasoning to all bounds of the NFL – players will no longer have leverage in “negotiating” compensation packages, benefits, promotions, etc.
If the US Supreme Court affirms, we may see players striking. New Orleans Saints quarterback, David Brees, wrote an article in The Washington Post highlighting his concerns with the possible implications of the US Supreme Court agreeing with the lower court.
The NFL maintains that its exclusive agreement with Reebok and pursuit of the case is avoid future lawsuits from disgruntled apparel manufacturers who dislike the NFL’s exclusive licensing agreement.
Sources: The Washington Post, Chicago Sun-Times, The New York Times
Ms. Filutowski has a track record of recovering over $3.5 million dollars for her clients through negotiations, arbitrations, mediations and trial.
