After nearly three hours of silence that some regarded as deafening, the NFL has spoken in response to the U.S. Supreme Court’s decision in the American Needle case.
In contrast to the NFL Players Association, which has declared victory, the league has downplayed the unanimous ruling that the NFL is not a single entity when it comes to negotiating licensing deals for apparel.
“In today’s decision, the Supreme Court recognized that ‘special characteristics’ of professional sports leagues, including the need for competitive balance, ‘may well justify’ business decisions that among independent competitors would otherwise be unlawful,” the statement reads. “The court noted that the NFL teams’ shared interest in making the league successful and cooperating to produce NFL football provide ‘a perfectly sensible justification for making a host of collective decisions.’
“The decision will simply result in American Needle’s claim being sent back to the federal district court in Chicago, where the case will resume in its early stages. We remain confident we will ultimately prevail because the league decision about how best to promote the NFL was reasonable, pro-competitive, and entirely lawful. The Supreme Court’s decision has no bearing on collective bargaining, which is governed by labor law.”
That last sentence is the most important. If the league had won the American Needle case, the argument that the 32 teams represent a single entity surely would have been used in other contexts. Moving forward, the league’s argument surely will be that a ruling made as to apparel deals has no bearing in other business contexts.
The league may have a point. But before we get too far down that path, we need to post today’s PFT Daily, which explains the link between the American Needle case and the labor deal.
Florio- Could a ruling like this have an effect on the “Williams Wall Starcaps Case”?
Florio,
Who owns the names and logos of the teams? Are they owned by each team? Or are they owned by the NFL?
It seems that if names and logos are owned separately, then the Ravens would’ve been able to retain the Browns colors and name.
Can apparel and other apparatus carry the NFL logo when it’s produced at the behest of a specific team?
If the NFL retains the rights to team names, colors and logos:
Can the NFL charge the team a % of the profits it earns from the sale of merchandise?
Can the NFL charge an annual fee for the team to use the name, color and logo?
Can a team change its name, colors, and/or logo without approval of the NFL and own it outright? Allowing it to keep all monies from merchandise sold?
Ugh, with LOST now over, football season can’t start soon enough
“League downplays American Needle decision”
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You expected something different?
When you get your ass kicked, your nose bloodied and broken, and your eyed blackened, it’s rather difficult to declare a victory.
Look for a future announcement where American Needle gets a new contract or Reebok decides to outsource hats to American Needle.
Even if the NFL is considered 32 separate entities the 32 separate entities have the right to bargain as one collective entity. This would produce 32 separate contracts between each team and the Union, but if the owners stayed together, each of the 32 contracts would be identical. Of course each of the 32 contracts would also have to be individually approved by the players for each team creating the possibility of 1 team not having a contract if enough players had “other issues” with the team (i.e. unpopular owner or GM).
The only long term issue would be contract administration since any grievance would be a grievance between the Union and the individual team. Howver, the owners could collectively decide to appoint the league to be the team’s representative.
I wonder if this will affect the Madden exclusive license for the NFL when it comes time for negotiations.
bacardilvr says:
I wonder if this will affect the Madden exclusive license for the NFL when it comes time for negotiations.
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Well, you have to wonder if Dish Network could use this to try to get the NFL to allow them to offer the Sunday Ticket. Not only has it become more expensive, it also limits the number of people that can get it.