Supreme Court will hear antitrust case over NFL team merchandise

According to Associated Press, the Supreme Court said that it will hear an appeal from American Needle Inc., of Buffalo Grove, Ill. and decide whether the National Football League and its 32 teams can enter an exclusive licensing deal with a maker of team jerseys and other gear without violating federal antitrust law.


American Needle had been one of many firms that manufactured NFL headgear before the league granted an exclusive contract to Reebok International Ltd.in 2001. The case is about whether the league is essentially a "single entity" that can act collectively or 32 distinct businesses that must be careful about running agains antitrust laws by working too closely together.

NFL spokesman Greg Aiello said recently that the league looked forward to explaining why the court should extend, on a national basis, favorable appeals court rulings on how antitrust laws apply "to the unique structure of a sports league."

The case will be argued late this year or early in 2010. No response has come from American Needle yet.