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Supreme Court rules against NFLFootball Betting Lines05/24/2010 - Washington, DC (Sportsbook Betting Lines) - In a unanimous decision Monday, the Supreme Court ruled that the NFL should be treated like 32 separate teams, not a single entity, in regard to selling licensed apparel. The decision reversed a ruling by the U.S. Court of Appeals for the Seventh Circuit, leaving the NFL open to antitrust action. The case centers around a suit American Needle, Inc. filed against the NFL after the teams authorized National Football League Properties (NFLP) to enter into an exclusive agreement with Reebok to produce and sell hats for all 32 teams in December 2000. American Needle had previously held a non-exclusive license, and claimed the NFL violated provisions of the Sherman Antitrust Act in its suit. The NFL had argued that because the league and its teams were a single entity, it was protected from antitrust action, and the Seventh Circuit court agreed. But Monday in an opinion delivered by Justice John Paul Stevens, the Supreme Court reversed the appellate court's decision, essentially saying that all 32 teams have separate interests and act in their owns interests, competing with one another. "To a firm making hats, the Saints and the Colts are two potentially competing suppliers of valuable trademarks," said Stevens. "When each NFL team licenses its intellectual property, it is not pursuing the common interests of the whole league but is instead pursuing interests of each corporation itself." The court said each team is an independently owned and managed business, and each competes with the other for fans, ticket sales, players and coaches. The ruling included several defenses the NFL made, such as that by forming NFLP, it has formed a single entity and collectively markets its separate brands. However, Stevens wrote an antitrust violator cannot "evade [Sherman Act] scrutiny simply by giving the ongoing violation a name and label." In coming to its decision, the Court considered how the NFL and its teams operate practically, not necessarily in title. "The NFL respondents may be similar in some sense to a single enterprise that owns several pieces of intellectual property and licenses them jointly, but they are not similar in the relevant functional sense," Stevens wrote. The court noted that the NFLP's licensing decisions are made by the 32 teams separately, and each owns its own stake. The ruling also said there is nothing preventing the teams from making their own licensing decisions. The court then concluded that "the NFL's licensing activities constitute concerted action that is not categorically beyond the coverage of" the Sherman Act. Following the Supreme Court's decision, American Needle is now able to proceed with its suit against the NFL.
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