WASHINGTON, June 29, 2009

Supreme Court To Take NFL Apparel Case

Court To Decide Whether Football League Can Enter Into Exclusive Licensing Deals Without Violating Antitrust Laws

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(AP)  The Supreme Court agreed Monday to decide whether the National Football League and its 32 teams can enter an exclusive licensing deal with a maker of team jerseys and other gear without violating federal antitrust law.

The court said it will hear an appeal from American Needle Inc., of Buffalo Grove, Ill., that challenges an agreement the NFL struck with Reebok International Ltd. American Needle had been one of many firms that manufactured NFL headwear until the league granted an exclusive contract to Reebok in 2001.

The NFL won the case in the federal appeals court in Chicago. But it also asked 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.

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.

Other than Major League Baseball, which has an antitrust exemption dating to 1922, the other sports leagues have an intense interest in the case. The National Basketball Association and the National Hockey League both asked the court to rule in favor of the NFL.

Reebok was acquired by Adidas AG in 2006 in a $3.8 billion deal that helped the German company expand in the United States.

The case will be argued late this year or early in 2010.

The case is American Needle v. National Football League, 08-661.

More Supreme Court coverage:

Court Rules For Firefighters In Ricci Case
Sotomayor Overturned In Firefighters Case
Tie Goes to Kennedy In Ricci Case
Supreme Court To Take NFL Apparel Case
Supreme Court Won't Touch Bible Club Case
Court Passes On 9/11 Claims Against Saudis
Court Delays Ruling On Anti-Clinton Movie
Supreme Court Hands DVR Win To Cable Cos.



© MMIX The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Add a Comment
by caldwellptr July 3, 2009 3:02 PM EDT
Perhaps if the public builds the NFL more new stadiums they will only raise ticket prices $100 instead of $1,000. (Even though that isn't the case with the new Yankee stadium in New York.)
Reply to this comment
by stn_sage June 29, 2009 11:00 PM EDT
OH, GREAT! This court WONT consider 911 claims against the Saudi Arabian
government or the bible club case, but it will handle an NFL apparel licensing case!

Now, that's priority, for you! What WAS it, we have this court for again?

To decide monumental questions of law, or matters that could be handled by a federal district court?

Let's hope it doesn't devolve to the point where it becomes 'traffic court'!
Reply to this comment
by gravyboat3000 June 29, 2009 9:11 PM EDT
cs..This is TOTALLY worthy of the Supreme Court's attention.

Hopefully, they'll rule against the NFL.

And they need to overturn MLB's sweetheart deal as well.
Reply to this comment
by cs4466 June 29, 2009 12:20 PM EDT
Oh yea, this is worthy of the Supreme Court's attention. *rolls eyes*
Reply to this comment

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