High-Stakes Antitrust Trial: US Soccer and MLS Face Off Against NASL

The long-anticipated antitrust trial involving the North American Soccer League (NASL), U.S. Soccer Federation, and Major League Soccer (MLS) has commenced in Brooklyn, New York. This case, which has been brewing for eight years, could have significant implications for the future of soccer in the United States, with potential damages exceeding $500 million at stake.

Key Takeaways

• The trial centers on allegations that U.S. Soccer and MLS conspired to undermine NASL, preventing it from competing effectively.
• High-profile witnesses, including sports executives and former players, may testify during the proceedings.
• The outcome could reshape the landscape of professional soccer in North America.

Background of the Case

The NASL, which operated from 2011 until its dissolution in 2018, claims that U.S. Soccer and MLS engaged in anti-competitive practices that led to its downfall. The league argues that it was unfairly denied recognition as a Division II league, which would have allowed it to compete at a higher level.

U.S. Soccer, as the governing body, has the authority to designate leagues as Division I, II, or III. NASL contends that U.S. Soccer and MLS conspired to protect MLS’s monopoly on top-tier soccer in the U.S., effectively driving NASL out of business.

The Allegations

• Conspiracy Claims: NASL alleges that U.S. Soccer and MLS worked together to apply standards in a discriminatory manner, preventing NASL from achieving the necessary status to compete.
• Financial Impact: The league claims that the actions of U.S. Soccer and MLS caused significant financial harm, leading to its eventual closure.
• Player Eligibility: The designation of a league impacts player eligibility for national teams and international competitions, adding another layer of complexity to the case.

Defense Arguments

In response, U.S. Soccer and MLS argue that NASL failed to meet the necessary standards for Division II status. They assert that NASL never turned a profit, lacked a viable broadcasting deal, and did not invest adequately in player development.

• U.S. Soccer’s Position: U.S. Soccer maintains that it applied its standards fairly and that NASL’s decline was due to its own shortcomings rather than any conspiracy.
• MLS’s Defense: MLS contends that it was not focused on NASL and that the two leagues operated in entirely different spheres of professional soccer.

Potential Outcomes

The trial is expected to last several weeks, with a jury hearing testimonies from key figures in the soccer world, including U.S. Soccer President Cindy Parlow Cone and MLS Commissioner Don Garber. If NASL succeeds in proving its case, damages could be tripled under antitrust laws, potentially reaching $516 million.

Conclusion

As the trial unfolds, the implications for the future of soccer in the United States are profound. The outcome could redefine the competitive landscape, impacting not only the leagues involved but also players, fans, and the broader soccer community. The case highlights the ongoing struggle for recognition and legitimacy in the world of professional sports, particularly in a market dominated by established entities like MLS and U.S. Soccer.

Sources

• NASL and U.S. Soccer Start Long Awaited Antitrust Trial, Sportico.com.
• US Soccer, MLS Trial Begins With NASL’s Competition Claims (1), Bloomberg Law News.
• Historic $500 million MLS-US Soccer court case underway in New York – AS USA, Diario AS.