Single Entity

I saw this article about cases the Supreme Court will hear this term, and one involving the NFL could have implications for MLS. MLS is considered a Single Entity, so on the surface this case may appear to have little to do with MLS. If the court rules that the NFL is a single entity, it would likely have little impact on MLS' current structure. However, if the Court rules that the NFL is a collection of individual business, it could open the door for either the Major League Soccer Players Union or a third party such as Nike to challenge Major League Soccer's Single Entity structure. This could lead to the Players' Union gaining bargaining power, or even the end of the league's exclusive deal with Adidas. There are many variables in these scenarios and I am no lawyer, but this case does have the potential to have a major impact on MLS. Below is the excerpt of the article related to this case, as well as a link to the article in its entirety.

http://news.yahoo.com/s/time/20091005/us_time/08599192776000

American Needle v. National Football League
At issue: Whether sporting leagues should be exempt from antitrust regulations.

Experts say American Needle may turn out to be the most important legal decision in sporting history. The sportswear manufacturer contracted with NFL teams to produce hats and headgear with official team logos. But the NFL decided to give an exclusive leaguewide license to Reebok in 2000, leading American Needle to sue, claiming the NFL's action violated the Sherman Antitrust Act by limiting the market for who could produce team-branded merchandise.

The fundamental question for the court to decide is whether the NFL should be considered a single entity or a collection of 32 individual businesses. The answer to this question has repercussions beyond the production of licensed merchandise. If the NFL is considered a single entity, it would largely be exempt from antitrust laws, giving the league not only continued right to grant exclusive licenses for team apparel but also the ability to make decisions on a leaguewide basis. This opens the door to the NFL - rather than individual teams - determining things like ticket prices and player salaries. Indeed, the bargaining power of the NFL Players Union is based on antitrust legislation that the league would largely be immune to if it receives a favorable ruling from the Supreme Court. Other sporting leagues are watching the American Needle case closely; many have filed briefs in favor of the NFL's position.