User:Pbutle11/Sports law in the United States

Antitrust Issues in Sports
Until a few decades ago,[when?] most United States professional sports leagues' contracts retained clauses contracts that essentially prevented players from leaving their original teams by their own choice. These "reserve clauses" were upheld because courts found that these sports leagues did not operate in interstate trade or commerce, meaning they did not fall under antitrust laws. See Federal Baseball Club v. National League (1922). This interpretation has largely been eroded today. However, Major League Baseball may still retain limited antitrust exemptions (it is unclear whether the entire exemption has been overruled by Flood Act because the true extent of the exemption was vague). It is important to note that the formation of players unions for the purpose of negotiating contracts with management is exempt from antitrust scrutiny under labor law. The by-product of good faith negotiations between management and players unions in the form of a CBA is also exempt from antitrust scrutiny.

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Antitrust challenges have recently taken the form of other domestic leagues challenging Major League Soccer and the United State Soccer Federation. This occurred in 2017, when the North American Soccer League (NASL) filed a lawsuit against United States Soccer Federation (USSF) following USSF's modification of its divisional requirements and its decision not to renew NASL's status as Division 2 for the 2018 year. NASL’s antitrust case was based on MLS’s single-entity structure and lack of promotion and relegation, something MLS receives an exemption from FIFA for doing. This was the first time a challenge to single-entity, closed-shop structure was brought by a lower league. NASL sought preliminary injunction against USSF imposing the new requirements, but was denied again on appeal. While preliminary injunction was denied, the case remains pending and may go trial.

In July 2021, a New York court found no violation of antitrust laws when FIFA and USSF set standards blocking foreign clubs from hosting competitive matches in the United States. Friendly and exhibition matches commonly take place in the United States.