07-23-2021, 08:07 AM
(07-22-2021, 08:58 PM)Goose Wrote: I think it is pretty clear what the court is saying. The current sports governance system is and always was illegal. They are slow-rolling it as much as possible (narrow interpretations to limit precedents as much as possible) to give congress and the schools a chance to figure out what legislation would work and would be constitutional. Nothing says the NCAA can't be given an anti-trust exemption (for example). In the current political climate however, probably not happening.
I agree with the highlighted statement, but the legal landscape has changed, as the decision noted. The court noted that a lot of things have changed substantially since 1984, when the majority opinion in NCAA v. Board of Regents of the University of Oklahoma found that:
Quote:not all restraints of trade were unreasonable, and that only an unreasonable restraint was prohibited by the Sherman Antitrust Act. Stevens noted that a league governing body was necessary for sporting events to take place and determined that the rule of reason, not per se rules applied to the case.
I think that a NIL case back in the mid-eighties might have been decided in favor of the NCAA. It certainly would not have been unanimous (the case was decided 7-2 with White and Rehnquist, who felt the NCAA's restrictions were reasonable.
There is a fundamental difference between competitive sports and other forms of entertainment. Disney doesn't need to put out the latest Star Wars movie in order for Universal to put out a new Bond movie. Because you need two teams on the field to play a football game, some degree of coordination between teams is necessary, and setting up leagues/conferences in order to coordinate is widely accepted; we aren't going to go back to the days of teams barnstorming around. Moreover, it is generally accepted (and the NCAA v. Board of Regents agreed) that leagues have an interest in maintaining competitive balance (just that in that particular case, the interest in competitive balance did not justify restricting television deals). Rules to maintain competitive balance are anti-competitive in any other interest, but I wouldn't count on the Supreme Court (even this one) striking them down on a per se basis.
However, as monopoly power is coming under increased scrutiny generally, and courts are starting to show increased skepticism of leagues assertion of their monopoly power, I think you are right that a number of arrangements will start to be examined (including, for example, the NFL's exclusive license with DirectTV). I think the most egregious actions by sports leagues will be struck down (except in baseball, which enjoys an anti-trust exemption), and power will generally be devolved from leagues to individual teams. Consequently, I think players/employees will benefit. However, I don't think we are on a path to where sports leagues are dissolved by the courts as a violation of anti-trust regulation.
BC
