Rep. Johnson to hold hearing on implications of American Needle v. NFL
Supreme Court decision could affect antitrust, competitive policies:
WASHINGTON – House Judiciary Subcommittee on Courts and Competition Policy Chairman Hank Johnson (D-GA) will hold a hearing Wednesday, January 20, 2010, on the competitive implications of the National Football League’s position of American Needle v. NFL that went before the U.S. Supreme Court on Jan. 13.
At issue is whether the NFL, which is made up of 32 teams, is one entity or 32 separate businesses with respect to its “core ventures.”
American Needle, Inc., which once made hats for some of the league’s teams, sued the NFL in 2004 after it awarded an exclusive contract with Reebok to produce and merchandise its hats in 2001.
American Needle says that is unfair and anticompetitive, and argues that the league is 32 businesses not one. The NFL says it operates as one entity with respect to promoting the League, and therefore has the right to sell its gear accordingly.
“On the one hand, supporters of the NFL argue that a decision in favor of the NFL would simply secure its ability to conduct the business of the league, staving off frivolous litigation and providing legal clarity for its position. On the other, detractors caution that a decision in favor of the league would have a calamitous impact on players and fans and could allow the NFL to eliminate free agency, impose a more restrictive salary structure and allow franchises to relocate more easily. In addition, not only would other sports leagues seek similar treatment, but there could also be spillover into non-sports markets, as a variety of networks, associations, and joint ventures would seek similar protection from antitrust litigation.”
WHAT: House Judiciary Subcommittee on Courts and Competition Policy hearing on “The Implications of American Needle v. NFL.”
WHERE: 2141 Rayburn House Office Building
WHEN: 2 p.m., January 20, 2010
WHO: Mr. William Daly, Commissioner, National Hockey League, New York, NY
Mr. Kevin James Mawae, National Football League Players Association, Washington, D.C.
Mr. Gary Gertzog, Senior Vice President, National Football League, New York, NY
Mr. Stephen F. Ross, Professor of Law and Director for Sports Law, Policy and Research, The Pennsylvania State University, University Park, PA