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American Needle Won! NFL Exclusive Deals May Be A Thing Of The Past

  11:13 AM - May 24, 2010 by aholbert32

Check out the coverage at ESPN.

Quote:
"WASHINGTON -- The Supreme Court on Monday turned away the National Football League's request for broad antitrust law protection, ruling that the league can be considered 32 separate teams -- not one big business -- when it comes to selling branded items like jerseys and caps.
The high court unanimously reversed a lower court ruling throwing out an antitrust suit brought against the league by one of its former hat makers, who was upset that it lost its contract for making official NFL hats to Reebok.

American Needle, Inc. sued, claiming the league violated antitrust law because all 32 teams worked together to freeze it out of the NFL-licensed hatmaking business. The company lost and appealed to the Supreme Court but the NFL did as well, hoping to get broader protection from antitrust lawsuits.

Major League Baseball is the only professional sports league with broad antitrust protection. The National Basketball Association, the National Hockey League, the NCAA, NASCAR, professional tennis and Major League Soccer supported the NFL in this case, hoping the high court would expand broad antitrust exemption to other sports.

The Supreme Court turned away the league's theory that its 32 teams operate as one business, and sent American Needle's antitrust lawsuit back to the lower court.

"Decisions by NFL teams to license their separately owned trademarks collectively and to only one vendor are decisions that 'deprive the marketplace of independent centers of decisionmaking ... and therefore of actual or potential competition," said the retiring Justice John Paul Stevens, writing for the court."

Member Comments
# 21 kjcheezhead @ 05/24/10 11:52 AM
Quote:
Originally Posted by Mbalmer
Are there any lawyers here in the OS world that can shed some educated light on the subject? There has to be at least one, right?

I don't know how long the legal process takes and when, if this ruling makes it so, that other companies can start making NFL games. It would be cool if EA, 2K, Backbreaker, and even Sony and Microsoft could start making football games.

I hope someone with a legal background can come in here and let us know what all this means and what kind of time frame we are dealing with. I know the lower courts have to look at their ruling.
I don't think anyone can answer that even for apparel, much less video games. For one thing, this ruling just eliminates exclusive deals. I'm sure NFL teams can still tell Midway or 2k they don't want to allow them to use their license because they don't like how their games would represent them.
 
# 22 DoubleDeuce @ 05/24/10 11:59 AM
I'm going to read it at lunch. But as someone else said, the lower court has to go back and rule on it again in light of the Supreme Court's interpretation of the SHerman Act. That court will probably be pissed at getting overturned 9-nil, as is the NFL. The NFL will double down and throw even more lawyers at the problem. You won't see anything happen with this generation of hardware.
 
# 23 Buckeyes_Doc @ 05/24/10 11:59 AM
Quote:
Originally Posted by Chiefsfan881129
Anyone who gets excited over this news really should not be happy at this time as this is not good at all i dont care what people think about compentation right now yes it will make games better i will give u that but its not good at all i wish american needle would just drop the lawsuit the reason i am aginest this is not because i dont want compentation its because i simply cant afford 2 football games at there current price range and i am a big time football fan so for the short term future with the budgit i am on having this case won by american needle is not good for gamers likeme who are on budgits the exclusive must stay on till the ecomany is fixed anyway cya guys later
LOL.

So everyone should wait until you have a bigger budget?

Or you could just buy 1 game, and actually have a choice which game to buy. You can also download demo's, rent, etc to help with this huge decision.
 
# 24 Exonerated @ 05/24/10 12:03 PM
Ok i just read this again. This has nothing to do with madden.
It's concerning merchandising brande apparel.

Also, American Needle has not one. Just need to put that out there.

This anti-trust repeal is kinda dodgy. As one person on ESPN mentioned, the NFL is like Mcdonalds. Mcdonalds licenses out its equipment, food and such to certain companies. So does the NFL. There are hundreds of Mcdonalds . There are many NFL teams. Mcdonalds all operate separately but use the same things. The NFL teams operate separate by use the same things. Mcdonalds has competition from KFC and BK and others. The NFL has no competition.

The NFL is being treated unfairly because it has no competition imo.

Correct me if i'm wrong, but does the US have a higher court than the supreme court? Because I would appeal.

Also, Madden is licensed by the NFL and the NFLPA.

In my personal opinion, the ruling on this case is (not wrong) short-sighted.
 
# 25 aholbert32 @ 05/24/10 12:04 PM
Quote:
Originally Posted by Exonerated
America Needle has not won yet. It's been sent back down to the lower courts. THe supreme court deals with matters of law. The lower courts deal with matters of facts.

Also, the legal process takes ages. From 2 to 6 to 12 months.

The other companies can start making football games only if or when the NFL's exclusive license is torn up.

I think the case with American Needle has little effect on the video gaming exclusive license though.

[thats my unprofessional analysis of the OP's blurb -- I should read the case now lol]
You are half right. The case goes back down to the lower court but the SC's ruling makes it very difficult for NFL to bring forth a strong defense. This case will likely be settled even before the lower court has a chance to hear the case again.

The ramifications will be that the NFL will be hesitant to enter into exclusive deals in the future. There will be a fear of an antitrust suit hanging over their heads. I dont think the NFL will tear up any current exclusive deals but I dont think they will extend them
 
# 26 ryan36 @ 05/24/10 12:04 PM
You could still negotiate with the NFLPA and get all players in...but I think it just ends exclusivity, I'm not a lawyer tho. Aholbert is, however so read his posts in this thread.

And as far as the return of Apex, aw hell, ...oh wait. Hats, you meant hats
 
# 27 bonbonan @ 05/24/10 12:07 PM
Quote:
Originally Posted by Buckeyes_Doc
LOL.

So everyone should wait until you have a bigger budget?

Or you could just buy 1 game, and actually have a choice which game to buy. You can also download demo's, rent, etc to help with this huge decision.
I feel you should share this with your friend so that each of you can buy 1 game and exchange it. Then it will be save for you two.
 
# 28 aholbert32 @ 05/24/10 12:08 PM
Quote:
Originally Posted by Exonerated
Ok i just read this again. This has nothing to do with madden.
It's concerning merchandising brande apparel.

Also, American Needle has not one. Just need to put that out there.

This anti-trust repeal is kinda dodgy. As one person on ESPN mentioned, the NFL is like Mcdonalds. Mcdonalds licenses out its equipment, food and such to certain companies. So does the NFL. There are hundreds of Mcdonalds . There are many NFL teams. Mcdonalds all operate separately but use the same things. The NFL teams operate separate by use the same things. Mcdonalds has competition from KFC and BK and others. The NFL has no competition.

The NFL is being treated unfairly because it has no competition imo.

Correct me if i'm wrong, but does the US have a higher court than the supreme court? Because I would appeal.

Also, Madden is licensed by the NFL and the NFLPA.

In my personal opinion, the ruling on this case is (not wrong) short-sighted.

The Mcdonalds analogy doesnt work. Every Mcdonalds uses the same trademark, has the same menu and are pretty much uniform. NFL teams are not. They all have different trademarks, all market themselves in different ways and have individual deals seperate from the NFL (The Redskins have an individual deal with Papa John's Pizza). The high court clearly stated that it sees the NFL as 32 seperate franchises...not one entity.
 
# 29 djordan @ 05/24/10 12:09 PM
I think everyone is blowing this way out of proportion.... I really don't think this has anything to do with videogames... Just apparel.
 
# 30 aholbert32 @ 05/24/10 12:11 PM
Quote:
Originally Posted by djordan
I think everyone is blowing this way out of proportion.... I really don't think this has anything to do with videogames... Just apparel.

LOL. This case focuses on exclusive deals. It can effect every kind of merchandise with the NFL brand.
 
# 31 J_Posse @ 05/24/10 12:13 PM
Quote:
Originally Posted by djordan
I think everyone is blowing this way out of proportion.... I really don't think this has anything to do with videogames... Just apparel.
Yeah, both those items are sold and bought by consumers (us), so the ruling would effect all of the NFL's exclusive contracts with companies such as EA, Reebok and DirecTV. This is awesome news on every conceivable level!!!!!!!!



Does anyone remember when the current exclusivity deal ends with EA Sports?
 
# 32 JerzeyReign @ 05/24/10 12:14 PM
Quote:
Originally Posted by Exonerated
Ok i just read this again. This has nothing to do with madden.
It's concerning merchandising brande apparel.

Also, American Needle has not one. Just need to put that out there.

This anti-trust repeal is kinda dodgy. As one person on ESPN mentioned, the NFL is like Mcdonalds. Mcdonalds licenses out its equipment, food and such to certain companies. So does the NFL. There are hundreds of Mcdonalds . There are many NFL teams. Mcdonalds all operate separately but use the same things. The NFL teams operate separate by use the same things. Mcdonalds has competition from KFC and BK and others. The NFL has no competition.

The NFL is being treated unfairly because it has no competition imo.

Correct me if i'm wrong, but does the US have a higher court than the supreme court? Because I would appeal.

Also, Madden is licensed by the NFL and the NFLPA.

In my personal opinion, the ruling on this case is (not wrong) short-sighted.

WTF over?? Comparing Mickey D's to Madden does not help that post. You should never quote ESPN when on a forum, lol.

-The Supreme Court is the highest court in the land. Only Obama holds more power then again the Supreme Court probably gets the final word.

-The NFL has plenty of comp, its' called other sports. Also we've had other football leagues try to start up but failed.

This is really good for those who want more than one football game. Wasn't there a lawsuit from some people who disliked EA's business practices fighting for the same thing? This looks really good for them if their still going thru with it.
 
# 33 Matt Diesel @ 05/24/10 12:16 PM
Quote:
Originally Posted by djordan
I think everyone is blowing this way out of proportion.... I really don't think this has anything to do with videogames... Just apparel.
It has to do with treating each franchise as an individual profit-based business. It transcends apparel. If won, any company that wants to make NFL Team products would have to deal with each team individually.
 
# 34 Exonerated @ 05/24/10 12:16 PM
Quote:
Originally Posted by aholbert32
LOL. This case focuses on exclusive deals. It can effect every kind of merchandise with the NFL brand.
Wow a Madden with only 15 teams but all correct player names. Sounds bad.

Anyways. I'm sure American Needle won't be getting any offers from the NFL teams to make hats for them. [really, you sued america's favorite sports team over hats](I'm aware of the wider ramifcations)

This policy ruling really sucks for sporting leagues I reckon. Although technically the 32 NFL teams operate independently, I think it would have been better to leave them be. (Like the MLB back in 1922...)
 
# 35 J_Posse @ 05/24/10 12:25 PM
Quote:
Originally Posted by Exonerated
Wow a Madden with only 15 teams but all correct player names. Sounds bad.

Anyways. I'm sure American Needle won't be getting any offers from the NFL teams to make hats for them. [really, you sued america's favorite sports team over hats](I'm aware of the wider ramifcations)

This policy ruling really sucks for sporting leagues I reckon. Although technically the 32 NFL teams operate independently, I think it would have been better to leave them be. (Like the MLB back in 1922...)
How does allowing consumer choice to return in all kinds of merchandising hurt? I really doubt that the individual teams will go out seeking separate game licenses. This allows people who don't subscribe to DirecTV to still get NFL Sunday Ticket, people who don't like Reebok apparel to buy Nike, Adidas or Under Armour. Most of all it allows competition to return to NFL, Golf, MLB and all other exclusively licensed sports video game products.
 
# 36 Exonerated @ 05/24/10 12:31 PM
Quote:
Originally Posted by J_Posse512
How does allowing consumer choice to return in all kinds of merchandising hurt? I really doubt that the individual teams will go out seeking separate game licenses. This allows people who don't subscribe to DirecTV to still get NFL Sunday Ticket, people who don't like Reebok apparel to buy Nike, Adidas or Under Armour. Most of all it allows competition to return to NFL, Golf, MLB and all other exclusively licensed sports video game products.
It may result in improved consumer choice of merchandising but thats further down the road.

This ruling potentially (we'll see in the lower courts) will allow individual teams to license out their merchandise to specific companies. It will allow the Cowboys to license their jerseys to Nike and Nike only. No Adidas or Under Armour.

It will allow the Patriots to license only CBS in broadcasting their games. Colts will only license the NFL Network to license their games.

I don't think you quite understand the ruling. It's not about the abrogation of exclusive licenses, its about the anti-trust exemption.

In my opinion, this ruling will only harm the NFL. As it is no longer in the eyes of the law a single entitity, it will appear disjointed. With every team licensing out everything to anyone. It will destroy the uniformity that is the NFL.
 
# 37 aholbert32 @ 05/24/10 12:33 PM
Quote:
Originally Posted by Exonerated
It may result in improved consumer choice of merchandising but thats further down the road.

This ruling potentially (we'll see in the lower courts) will allow individual teams to license out their merchandise to specific companies. It will allow the Cowboys to license their jerseys to Nike and Nike only. No Adidas or Under Armour.

It will allow the Patriots to license only CBS in broadcasting their games. Colts will only license the NFL Network to license their games.

I don't think you quite understand the ruling. It's not about the abrogation of exclusive licenses, its about the anti-trust exemption.

In my opinion, this ruling will only harm the NFL. As it is no longer in the eyes of the law a single entitity, it will appear disjointed. With every team licensing out everything to anyone. It will destroy the uniformity that is the NFL.
Television will not be affected by this ruling....only merchandise.
 
# 38 Exonerated @ 05/24/10 12:37 PM
Quote:
Originally Posted by aholbert32
Television will not be affected by this ruling....only merchandise.
Really? My bad. It hard for me to tell coz theres no case report to read. Just making some inferrences on what some journalist on espn said.

I assumed merchandise included television.
 
# 39 J_Posse @ 05/24/10 12:40 PM
Quote:
Originally Posted by Exonerated
It may result in improved consumer choice of merchandising but thats further down the road.

This ruling potentially (we'll see in the lower courts) will allow individual teams to license out their merchandise to specific companies. It will allow the Cowboys to license their jerseys to Nike and Nike only. No Adidas or Under Armour.

It will allow the Patriots to license only CBS in broadcasting their games. Colts will only license the NFL Network to license their games.

I don't think you quite understand the ruling. It's not about the abrogation of exclusive licenses, its about the anti-trust exemption.

In my opinion, this ruling will only harm the NFL. As it is no longer in the eyes of the law a single entitity, it will appear disjointed. With every team licensing out everything to anyone. It will destroy the uniformity that is the NFL.
You should go back and see how many companies made NFL branded apparel prior to their exclusive deal with Reebok. Off the top of my head I can name Wilson, Adidas, Nike, Russell, Champion and many more. The Dallas Cowboys had an exclusive apparel deal with Nike prior to the NFL deciding to go exclusive. Like someone else mentioned about guys like Jerry Jones and Daniel Snyder loving the opportunity sign their own individual apparel contracts. Teams like the Bills, Browns and Jaguars would just have to find cheaper deals for themselves.
 
# 40 doctorhay53 @ 05/24/10 12:43 PM
Here is the problem with that ruling....if the 32 NFL teams are to be considered completely separate entities, this is actually quite bad for NFL games. We will end up with 27 real teams and then 5 'Dallas Lonestars'. Negotiating with every single team individually will become completely impossible, way overexpensive, and just plain impossible. This is not the route that helps us as football video gamers, but that's just my opinion obviously.
 


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