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Victory for U.S. Soccer and MLS: NASL Antitrust Lawsuit Dismissed

2 months ago

A federal jury has ruled in favor of the U.S. Soccer Federation (USSF) and Major League Soccer (MLS) in a significant antitrust lawsuit brought by the North American Soccer League (NASL). The verdict, delivered after a three-week trial, marks the end of a lengthy legal battle that began in 2017 when the NASL sought damages exceeding $500 million, claiming that USSF and MLS conspired to suppress competition.

Key Takeaways

  • The jury unanimously sided with USSF and MLS, dismissing NASL’s claims.
  • The lawsuit stemmed from NASL’s allegations of anticompetitive practices by USSF and MLS.
  • NASL’s failure to secure Division 2 status was central to the case.
  • The verdict is seen as a validation of USSF and MLS’s commitment to fostering soccer in the U.S.

Background of the Lawsuit

The NASL, which operated from 2011 until its hiatus in 2018, filed the lawsuit after the USSF denied its application for Division 2 status. The league argued that the USSF’s criteria for league classification were manipulated to favor MLS, which has been the dominant soccer league in the U.S. since its inception in 1996.

The NASL’s claims included allegations that USSF and MLS conspired to restrain trade and monopolize the market for professional soccer leagues. The league sought to prove that it was unfairly denied the opportunity to compete at a higher level due to the actions of USSF and MLS.

The Trial

The trial featured testimony from notable figures, including former USSF president Sunil Gulati and MLS commissioner Don Garber. The defense argued that the NASL’s struggles were due to its own mismanagement rather than any conspiracy. They pointed to the league’s inability to maintain a stable number of teams and its association with controversial investors as factors contributing to its decline.

The jury deliberated for less than two hours before reaching a unanimous decision, concluding that NASL failed to provide sufficient evidence of a conspiracy or substantial harm to its business.

Reactions to the Verdict

Following the verdict, both USSF and MLS expressed relief and satisfaction. USSF stated that the decision validates its commitment to a healthy ecosystem of soccer leagues in the U.S. MLS emphasized that the lawsuit was an attempt by NASL to deflect blame for its own failures.

NASL’s lead attorney, Jeffrey Kessler, indicated plans to appeal the decision, citing perceived legal errors during the trial that may have influenced the jury’s understanding of the case.

Implications for Soccer in the U.S.

The dismissal of the NASL’s lawsuit is seen as a significant victory for both USSF and MLS, allowing them to continue their efforts to grow soccer in North America without the threat of antitrust litigation. The case has highlighted the complexities of professional soccer governance in the U.S. and the challenges faced by leagues attempting to compete with MLS.

As the soccer landscape evolves, the outcome of this lawsuit may influence future league formations and the regulatory environment surrounding professional soccer in the United States. The NASL’s potential appeal could prolong the legal saga, but for now, USSF and MLS can focus on their ongoing development initiatives and the growth of the sport.

Sources

Written By

Jordan Westbrook is a dedicated journalist with a profound passion for Major League Soccer. With extensive experience in sports journalism, Jordan leads MLS News Today in delivering timely and insightful content to soccer enthusiasts. Beyond the newsroom, Jordan enjoys attending live matches and engaging in discussions about soccer strategies with fellow fans.

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