On January 10, New Orleans Saints quarterback Drew Brees took the side of American Needle in
American Needle Inc. v. NFL in this article in the Washington Post's Outlook section
"The NFL Shouldn't Call All the Plays". Briefly, American Needle is charging the NFL with an antitrust violation because it awarded an exclusive contract to Reebok to make and sell souvenir NFL caps, thus depriving American Needle of that line of business. The Supreme Court has heard oral arguments in the case. Lower courts ruled in favor of the NFL on the grounds that for the purposes of selling souvenir merchandise the 32-team NFL is one entity, not 32 separate ones. American Needle and the NFL both asked for Supreme Court review. The NFL wanted the review because it wants to be considered one entity, not 32, in all business dealings. The NBA and NHL have sided with the NFL and the major sports players' associations have sided with American Needle. MLB is not participating because it already has an anti-trust exemption.
Why are Drew Brees and the NFL players and players in the other sports leagues so concerned and why did the NFL ask for Supreme Court review when it had already scored a favorable narrow lower court ruling? Brees and the major sports players see this as strengthening the hand of the sports leagues and team owners. If the NFL succeeds, the rights the players have won through previous anti-trust lawsuits, strikes and hard bargaining to negotiate terms of their employment with individual teams, he says, will be seriously eroded. Leagues and team owners will be able to make take-it-or-leave-it offers of salaries and potentially cut players' salaries and benefits.
No matter what rationale the NFL and the other leagues may offer, I believe Mr. Brees sees the real reason behind the NFL's posture. I think the owners are concerned, and probably rightly so, that they must take action, possibly drastic action, that will enable them to curb players' salary demands because the current, long-term economic model of major sports is not sustainable. There are signs that engines that have been sustaining the multi-million dollar profits of the owners and salaries of the players--stadium naming rights, sponsorships, the sale of media rights and high game ticket and seat license prices--are eroding in this time of economic downturn, so I believe the NFL and its allies, the NBA and NHL, have seized on this relative minor legal case to get the necessary leverage to curb players' salaries.
I think the case is also a marker of a new trend for the major sports leagues to act in concert to safeguard and improve their economic interests and of the players' associations to act in concert to further their opposing interests. Late last year, there was another example of the leagues acting together. The NHL fought successfully in bankruptcy court to prevent the high bidder for the bankrupt Phoenix Coyotes from moving the team to Ontario, and the other leagues supported the NHL. The NHL succeeded in keeping the Coyotes in Arizona by buying the team.
Might we see simultaneous or near simultaneous work stoppages in the 4 major U.S. sports in this new decade either in the form of strikes or lockouts? I think it's a possibility.
BTW, the MLS players and MLS are in contentious labor negotiations currently. In the U.S. we have been accustomed to speaking of the 4 major sports, but we really ought to speak of 6--the traditional 4, MLS and NASCAR.