In a significant reversal of a previous lower-ruling, the Supreme Court has issued a unanimous ruling in favor of American Needle Inc. in the case of American Needle Inc. v. National Football League. The Supreme Court said on Monday that for the purposes of selling branded jerseys and caps, the NFL is an “unincorporated association of 32 separately owned professional football teams” instead of a single business.
American Needle, an apparel manufacturer based in Illinois, lost its contract with the NFL after the league entered into an exclusive 10-year deal with Reebok to produce licensed apparel and accessories. American Needle argued that the league's deal with Reebok violated anti-trust statutes because the NFL was a collection of independently owned business instead of a single business entity.
In 2004, American Needle sued the NFL, claiming the league was, in essence, a monopoly. American Needle said the structure shouldn't exempt teams from the usual rule that independently owned businesses face antitrust scrutiny when they act in concert. The company claimed the Reebok agreement led to price increases.
Reebok claimed American Needle profited from the NFL's collective licensing for more than two decades, objecting only after the league started dealing exclusively with one company.
Major League Baseball is the only professional sports league with broad antitrust protection.
