US Supreme Court to hear NFL apparel licensing case

by David Fucillo on Jun 29, 2009 9:40 AM PDT in San Francisco 49ers News

A few days ago the NFL and American Needle Inc. both appealed to the United States Supreme Court for a decision regarding antitrust issues and the NFL's exclusive licensing deal with Reebok. Although the Supreme Court has gone into recess for the summer, ESPN is reporting that the Supreme Court has agreed to hear the case next term. Oral arguments will be later this year or early in 2010.

This could be a huge antitrust case for the NFL and the other sports leagues. American Needle had an official license to manufacture NFL headwear, but lost the deal when the NFL reached an exclusive contract with Reebok in 2001. American Needle sued and the NFL won the case in the federal court of appeals. American Needle obviously appealed, but the NFL also appealed "asking the Supreme Court to hear the case in a quest for a more sweeping decision that could put an end to what the league considers costly, frivolous antitrust lawsuits."

I haven't had a chance to read the court of appeals decision, but as ESPN puts it:

The case concerns whether the league is essentially a "single entity" that can act collectively or 32 distinct businesses that must be careful about running afoul of antitrust laws by working too closely together.

The various professional sports leagues in the US have dealt with antitrust concerns for decades. MLB has an antitrust exemption, while I believe the NFL has a more limited exemption related to the television contract and their player draft (the player draft is technically an illegal restraint of trade).

While sports labor is the area of the law I am most interested in, antitrust law has a lot of intriguing nuances. I'd imagine the NFL will end up winning this case, but either way we'll keep an eye on it.

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Question?

I just viewed the Rathman post and was reminded that when he was a player there was some controversy with the NFL surrounding his use of " NO FEAR" on his helmet (or jersey I forgot which). Was that controversy associated with any NON NFL licensing agreement? Just currious becasuse seems to me that other players (and coaches) have into an issue over NFL licensing aggrement ( Nolan and his suit comes to mind)

by WC-Ninerhead on Jun 29, 2009 10:24 AM PDT reply actions

Nolan

Not sure about the Rathman issue. However, with Nolan’s suit issue, aside from getting permission from the league, Reebok actually designed the suits Nolan (and Jack Del Rio) wore.

by David Fucillo on Jun 29, 2009 10:40 AM PDT up reply actions

I hate Reebok

I think the NFL needs to release this subject to the team levels at some point in the future. The NFL should create the specs and standards for all uniforms that each team has. Each team would then be responsible to adhere to those standards and rules but allow each team to get their own apparel from whatever company it can. Then each team would then try and get the best deal from companies to produce their gear. Heck maybe they could even get the gear for free, plus money from the company for the rights to produce the replica jerseys! I do understand the one big argument against it, say you have a star athlete who gets a huge endorsement contract from say Nike, and then he may be pushed to play for a team that has a contract from Nike. Well just my thoughts on the matter.

by Ten-Man on Jun 29, 2009 11:45 AM PDT reply actions