Threading the American Needle.... SCOTUS Rules Against NFL

In what has been described as the Sports Case of the Century, today the Supreme Court has laid down its ruling.... The conduct that the NFL sought approval of was considered "concerted activity" and in violation of The Sherman Act.

In a unanimous opinion authored by Justice Stevens (likely a tribute to the Justice during his last few weeks on the court), lacking both a concurrence or a dissent, the Justices said the league should be considered 32 SEPARATE teams, not a single business falling under the "Single Entity" exception to The Sherman Act.

The league sought to get the same broad protection that is enjoyed by professional baseball, where individual teams can make financial decisions as one business. The case arose from a small Illinois-based manufacturing company that previously held long-term contracts with NFL Properties, the licensing division (and separate company) of the NFL. But, right after the most recent licensing agreement between American Needle and NFL Properties expired, the leagued entered into a 10 year exclusive deal with Reebok. This meant that American Needle was no longer free to continue to negotiate their own manufacturing agreements with ANY team.

In the absence of this competition, fans have complained about skyrocketing prices of team merchandise, to which Justice Stevens addressed in his opinion by stating: "The fact that NFL teams share an interest in making the entire league successful and profitable, and that they must cooperate in the production and scheduling of games provides a perfectly sensible justification for making a host of collective decisions. But the conduct at issue in this case is still concerted activity under the Sherman Act."

So what does this mean for players and fans? In a statement released earlier today from NFLPA Executive Director DeMaurice Smith, he stated that: "Today's Supreme Court ruling is not only a win for players past, present and future, but a win for the fans." He also went on to note that they would continue to fight for a fair collective bargaining agreement in good faith to avoid a lockout.