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Steven Semeraro, May 27, 2009
This article reviews the case law assessing the single-entity defense and evaluates the American Needle decision. Professional sports leagues have long been magnets for antitrust claims, because their rules, policies, and contracts can be viewed as the product of an agreement among independently-owned teams that both play in and direct the league. Popular sports leagues also have substantial power in some markets, because, for loyal fans, there is no reasonable substitute for watching their favorite team. Those who are disgruntled by the actions of a sports league thus have little difficulty couching their grievance as a contract, combination, or conspiracy that triggers Section 1 scrutiny.
