The Antitrust Lawsuit Filed by the North American Soccer League

The Antitrust Lawsuit Filed by the North American Soccer League

The North American Soccer League (NASL) has filed an antitrust lawsuit against the U.S. Soccer Federation and Major League Soccer (MLS), which has now been given the green light to proceed to trial. This lawsuit comes after the NASL lost its Division 2 league status from the USSF in 2017, leading to the eventual cessation of its operations.

The NASL’s complaint alleges that the USSF has violated federal antitrust laws through its division structure, which the NASL claims is designed to favor MLS over other leagues, including the NASL itself. The division structure, enforced through the Professional League Standards (PLS), sets forth minimum requirements for leagues, such as team numbers, geographic distribution, market sizes, and financial criteria. The NASL argues that the USSF selectively applies and waives these criteria to suppress competition from the NASL in favor of MLS and the United Soccer League (USL).

The trial is scheduled to begin on September 9th, marking the culmination of seven years of legal battles for the NASL. Jeffrey Kessler, the lead attorney for the NASL, expressed delight at the prospect of finally getting their day in court. Both the USSF and MLS have remained tight-lipped on the matter, opting not to comment on the ongoing litigation.

In the U.S. District Court for the Eastern District of New York, Judge Brian M. Cogan dismissed the NASL’s motions for summary judgement, citing the need for a trial to resolve the questions of fact at hand. While Cogan granted one of the motions from the USSF and MLS, which challenged the legality of the PLS, he denied the second motion that claimed the NASL’s assertions of collusion between the USSF and MLS. This ruling paves the way for the trial to determine whether the enforcement of the PLS unlawfully restrains trade.

The outcome of the antitrust lawsuit filed by the NASL could have far-reaching implications for the landscape of professional soccer in the United States. If the court rules in favor of the NASL, it could potentially lead to significant changes in how leagues are structured and sanctioned by the USSF. On the other hand, a ruling in favor of the USSF and MLS would solidify the current division structure, potentially limiting competition from other leagues like the NASL.

The antitrust lawsuit filed by the NASL against the USSF and MLS is set to be a watershed moment in the history of professional soccer in the United States. The trial scheduled for September will determine the legality of the division structure enforced by the USSF, with potential implications for the future of the sport in the country. As the legal battle unfolds, the soccer community awaits the outcome of this high-stakes case.

MLS

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