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- St. Louis Settled But Could They Have Received More from the Rams and the NFL?
Mike Florio, writer for Pro Football Talk.com, reported Monday that “an expansion team was never on the table as a pre-trial settlement possibility.” The NFL had to suffer an enormous loss at trial, and they also had to lose to Stan Kroenke. When he says the NFL had to lose to Kroenke, he means the NFL had to lose on the indemnity issue, and all 32 owners paid their damages’ share, not Stan Kroenke paying on the owners’ behalf in this case. Florio further reports “Kroenke’s lawyers were ready to pay more than $790 million to end the case, and that the league’s lawyers intervened. The league drew a hard line at $790 million. They were not paying $800 million and above, and to their surprise, it got the deal done. The question for the attorneys after Stan Kroenke and the NFL offered $790 million was to take $276.5 million (35 percent of the settlement) plus costs now, or to keep fighting and pushing and chasing a pot that may be bigger, the same, or smaller. Florio, a former attorney, believes St. Louis could have received the billion dollars, but as reported by various media outlets, St. Louis, the Convention and Visitors Commission, and the Regional Stadium Authority did not want to risk losing at trial. They chose the safe route to the St. Louisans’ ire. Ben Frederickson and Joel Currier, sports and legal writer for the St. Louis Post-Dispatch respectively, covered this lawsuit from beginning to end. They are two among various St. Louis media members who let St. Louis and the national media know what is going on in the Gateway City. They stayed one step ahead to the point that Frederickson and Currier reported the settlement late last Tuesday night before any other media outlet caught wind that the settlement occurred the following morning. The NFL owners are a “mafia,” and they control what happens in the NFL, not Roger Goodell. Goodell makes decisions based on the owners and their best interests, which is what will make them the most money. “Karraker and Smallmon” from 101ESPN, reported that it sounds like Stan Kroenke is responsible for the entire $790 million settlement. St. Louisans can feel relieved this case is over, or frustrated that this did not go to trial. The realization for St. Louisans is this case received national coverage and the NFL’s “dirty laundry” got released to the public. Ben Frederickson reported on Tuesday night that Mayor Jones decided to settle because the lawsuit ran its course in her opinion. His article includes Mayor Jones’ decision to accept the settlement. She said: “Well, we [the St. Louis team] all know that when you take things to court, it can be a long process [.]” “We’ve already been in this process since 2017. I felt it was time to put it to rest.” Dan Lust, Dan Wallach, and guest Howard Balzer revealed Mayor Jones’ prior occupation was city treasurer. This quote and her background can mean several things, but the way I construe it is Mayor Jones settled because she had enough and the money was too good to pass up. She was the former treasurer, as “Conduct Detrimental,” along with Howard Balzer, revealed. This may answer some questions why St. Louis settled with the Rams and the NFL fifty days prior to trial. Dan Wallach, on an interview with Nestor on YouTube, stated the “attorney agreed to settle because their payment is “life-altering.” He told Nestor every equity partner received a “life-altering $10 million as payment for their work on the case. The attorneys worked on this case on a contingency basis. If they win, they get paid, but if they lost, they would not receive a payment. Dan’s fact is almost pro-“attorneys are glad they settled because they got paid” argument. In the same article, he reported County Executive Sam Page’s reasoning. His reasoning was “the experts that advised them, the county counselor’s office and their outside legal counsel advised them the settlement was a good settlement for St. Louis County and St. Louis City, and that they should accept it and move on.” Those who argue the lawyers were after the money may be right according to Page’s comments, but those who argue the plaintiffs made the decision on their own are right according to Mayor Jones’ comments. Either way one leans in this argument, this settlement is a win for St. Louis because the NFL and Kroenke paid them nearly $800 million. They exposed the NFL; they showed the league does anything to raise their revenues. They did the same when they moved the Rams to St. Louis in 1995; however, twenty-one years later, they did it behind-the-scenes with a “proper vote.” They knew Stan Kroenke was the only owner who had the pockets to move a team to the nation’s second largest market. Hopefully St. Louisans remember the good times and memories they had while the Rams were in town, and they showed their fandom because they wanted an expansion franchise. This is similar to someone willing to forgive their significant other after they cheated on their partner. They are not only willing to forgive the NFL, but they are willing to welcome them back with open arms. A franchise was not in the cards, but if they pushed for more, they may have received nothing. That is why they did not push for more. Alex Patterson is a 3L at Thomas M. Cooley Law School in Lansing, Michigan. He played football for seventeen years as an offensive and defensive lineman. He graduated from Lindenwood University-Belleville in 2018 with a Bachelor's in Sports Management. He can be followed on Twitter @alpatt71.
- The Expanding Pathways to the NBA
Michael Jordan and North Carolina. Patrick Ewing and Georgetown. Kareem Abdul-Jabbar (known as Lew Alcindor at the time) and UCLA. All Basketball Hall of Famers that are forever linked with leading their schools to NCAA titles. Today, those players all seem like distant memories and that era of college basketball is a relic of the past. It’s becoming ever more likely that the next crop of NBA superstars will never step foot on a college campus. Teenage basketball phenoms opting out of college and taking an alternate route isn’t a brand-new concept. In 1971, the Supreme Court ruled in Haywood v. National Basketball Association that the NBA’s requirement that a player wait four years after high school graduation, essentially forcing players to attend college before they enter the NBA, was a violation of the Sherman Antitrust Act.[1] Players were no longer required to attend four years of college before going pro. However, the decision to skip college entirely didn’t become popular until 1995 when the #1 high school basketball player in the country, Kevin Garnett, made the controversial decision to enter the NBA draft just months after attending senior prom. This led to an avalanche of players in the coming years jumping directly to the NBA including Kobe Bryant, Tracy McGrady, and LeBron James. The NBA halted this momentum in 2005 when they agreed with the NBA Player’s Union to place an age restriction to enter the league. In their newly constructed collective bargaining agreement, the NBA set the minimum age at 19 years old, or one year removed from high school. This gave rise to the “one and done” phenomenon in college basketball where a player stays on campus for his freshman season before bolting for the NBA draft. Still, this didn’t force every top prospect to play college basketball. Throughout the next decade there were examples of high schoolers who recognized their earnings potential and opted on playing professionally oversees instead of college for the mandatory one-year grace period. These examples were few and far between with varying degrees of success so many failed to recognize a major shift that was taking place in the youth to professional basketball pipeline. In recent years, more players have realized they no longer have to wait to shake the commissioner’s hand as they walk across the NBA draft stage to cash in on their talents. Players can start earning much earlier and without having to open a college textbook in the meantime, and others began to take notice. Several different outlets began attempting to provide a platform for these teenagers to showcase their talent and reap the benefits. LaMelo Ball, the younger brother of NBA player Lonzo and youngest son of outspoken father LaVar, made headlines when he began playing internationally at the age of 16. His professional career included stops in Lithuania and Australia before entering the NBA and winning rookie of the year in 2021. Many questioned his decision to play internationally at such a young age, but LaMelo never seemed to waver. On the flip side, his decision to play professionally led to confessions in radio interviews about driving a Lamborghini at age 17. The National Basketball League (NBL) in Australia became an advocate for American players like Ball seeking to skip their “one and done” year in college and begin playing professionally immediately. The U.S. took notice of the opportunity these players were being presented internationally and decided to pounce. In 2017, Darius Bazley was a McDonalds All American and committed to play college basketball at Syracuse. But Bazley had a change of plans, decommitting from Syracuse and taking his talents to the board room. The popular Boston-based shoe company, New Balance, offered Bazley a one-year internship that paid him $1 million as he prepared for the following year’s NBA draft. Bazley worked with New Balance’s marketing teams as he trained and was eventually drafted #23 overall by the Oklahoma City Thunder in 2019.[2] The NBA also decided to throw their hat in the ring. Although their 19-year-old age requirement still exists, the league still found a way to profit on the youth movement. The NBA developmental league (referred to as the G-League) historically was a place for players who failed to make NBA rosters to showcase their skills. The NBA recently developed the “professional path program” designed for recent high school graduates to enter the G-League for one year before the NBA draft. Players still can’t enter the NBA directly out of high school, but they can opt to play in the G-League for one year before making the leap.[3] The 2020 #1 player in the country, Jalen Green, signed a deal for $500,000 to play for the G-League Ignite, a team created solely for the purpose of developing teenagers. Greene, alongside his Ignite teammate Johnathan Kuminga who was also directly out of high school, were drafted #2 and #7 respectively in the 2021 NBA draft. The popular social media brand Overtime obtains 1.6 billion views on their various social media platforms every month. The brand recently created Overtime Elite; a basketball league designed for high schoolers with NBA aspirations. The league is backed by investors such as Jeff Bezos and Alexis Ohanian, and NBA players Trae Young, Kevin Durant, and Carmelo Anthony. Overtime Elite allows players to sign 6-figure deals as they leave traditional high school, skip college, and work on their game full-time as they prepare for the NBA. This year Overtime Elite provided an opportunity for 16-year-old Jalen Lewis to become the youngest professional basketball player in U.S. history.[4] With the digital meteoric rise of social media, youth basketball has developed into global entertainment. Players are becoming online celebrities before they obtain a driver’s license. Mikey Williams is 17 years old and the #11 ranked player in the 2023 class. But what’s even more impressive about Williams is that he currently has 3.4 million instagram followers. To place that in perspective, Jaylen Brown is an all-star for the Boston Celtics and one of the best basketball players on the planet. Brown has 1.9 million followers. Williams has a bigger social media presence than most players in the NBA. Thanks to the recent NIL rules, Williams recently became the first high school athlete to sign an endorsement deal with Puma.[5] High school and AAU games routinely moonlight as quasi-Hollywood gatherings featuring A-Listers such as Drake, Kanye West, and Michael B. Jordan sitting courtside. While Drake has rapped about the prominent Los Angeles high school Sierra Canyon in his latest album, Kanye West took it a step further. The 21-time Grammy award winning rapper opened Donda Acadmey, a high school in Simi Valley outside of Los Angeles. Within the first year, Donda Academy was able to lure several high-profile players from surrounding schools to join team Donda.[6] The NCAA observed this momentum and could no longer bury their heads in the sand. This year the NCAA adopted NIL rules that allow athletes to profit off their image by signing endorsement deals with third parties. Finally, college athletes will be eligible to receive a form of payment. But is it too late? International basketball, the G-League, and Overtime Elite are all proving that teenagers can get paid for playing basketball without sacrificing their chances of making it to the NBA. It remains unclear how many 16-year-olds would prefer to wear a Duke uniform over playing professionally in a league cosigned by their NBA idols or favorite rappers. The next NBA collective bargaining negotiations are set to take place in either 2023 or 2024, and the 19-year-old age limit may be on the chopping block. But regardless of what transpires during these negotiations, one thing is for certain – youth basketball is no longer just for amateurs. Matt Netti is a 2021 graduate from Northeastern University School of Law. He currently works as an attorney fellow at the Office of the General Counsel for Northeastern University. You can follow him on twitter and Instagram @MattNettiMN and find him on LinkedIn at https://www.linkedin.com/in/matthew-netti-ba5787a3/. [1] Haywood v. National Basketball Association, 401 U.S. 1204 (1971); William C. Rhoden, Early Entry? One and Done? Thank Spencer Haywood for the Privilege., New York Times (June 29, 2016) https://www.nytimes.com/2016/06/30/sports/basketball/spencer-haywood-rule-nba-draft-underclassmen.html. [2] Nick Crain, OKC Thunder’s Darius Bazley Opens Up About New Balance Internship And Path To NBA In New Documentary, Forbes (last visited Dec. 2, 2021) https://www.forbes.com/sites/nicholascrain/2020/11/16/okc-thunders-darius-bazley-opens-up-about-new-balance-internship-and-unprecedented-path-to-the-nba-in-upcoming-documentary/?sh=21ed749e2d65. [3] Jabari Young, A top high school basketball player could net up to $1 million by skipping college and playing for the NBA’s G League, CNBC (Apr. 17, 2020) https://www.cnbc.com/2020/04/17/nba-developmental-program-changing-recruitment-landscape.html. [4] Bruce Schoenfeld, The Teenagers Getting Six Figures to Leave Their High Schools for Basketball, NY Times (Nov. 30, 2021) https://www.nytimes.com/2021/11/30/magazine/overtime-elite-basketball-nba.html. [5] Nick DePaula, Mikey Williams, 17, signs historic footwear and apparel deal with Puma, ESPN (Oct. 29, 2021) https://www.espn.com/nba/story/_/id/32500553/mikey-williams-17-signs-historic-footwear-apparel-deal-puma. [6] Grant Rindner, Kanye West Welcomes Four Top Basketball Recruits to Donda Academy, GQ (Oct. 7, 2021) https://www.gq.com/story/kanye-west-donda-academy-top-basketball-recruits.
- The Delicate Legal Art of Funding, Building, and Naming a Stadium in America: Part I - Financing
Have you ever looked at your local professional sports stadium and wondered how it came to be? It’s easy to overlook just how monumental a task it is for such a building to come into existence - a confluence of perfect conditions, plus hundreds of hours of due diligence, hard-nosed negotiations, countless contracts, and more goes on behind the scenes before such a dream can become a reality. Three key areas that should be explored are the financing of the stadium, the land use for building the stadium, and the naming rights. This first article in a three-part series will dive into the basics of financing. Figuring out how a stadium project will be funded is the lifeblood of the operation - without the necessary capital, the project doesn’t even get off the ground. The money has to come from somewhere, but where? When a new sports stadium or arena is desired, teams might discuss and negotiate with states and local governments to determine how they will be funded. No two situations are the same, and a variety of factors must be considered before outlining a financing plan. Thus, one way that a stadium may be paid for, at least in part, is by public financing. This occurs, in effect, when those local and state governments agree to pay for a substantial portion of the stadium’s costs. As the money that the government will use is public funds, this cost is in practice delegated to the local taxpayers, who will see their money essentially being put towards a stadium development project. This use of public funds to build a stadium has been occurring for decades, but there is controversy among many who believe that your average citizen should not be paying for something that a team owner could likely pay for themselves. To that end, the willingness of the public to pay for such a project depend on many factors, such as level of interest in the team, threat to relocate, the promise of a stadium bringing jobs and economic growth to the area, and more. One concern is that these public funds could hypothetically be used more beneficially elsewhere, such as for infrastructure, or education. Nevertheless, these stadium subsidies can come in many forms, including but not limited to tax-free municipal bonds, cash payments, long-term tax exemptions, infrastructure improvements, and operating cost subsidies. Again, the idea is that these stadiums are a public good - theoretically providing jobs and promoting economic growth and interest in the area. If such an agreement is approved, citizens may see higher taxes for a period of time too, such as the Community Investment Tax, a sales tax increase that helped pay for the Tampa Bay Buccaneers’ stadium. Some notable stadiums that were entirely publicly funded include Angel Stadium of Anaheim (home to MLB’s Los Angeles Angels), Arrowhead Stadium (home to the NFL’s Kansas City Chiefs), BB&T Center (home to the NHL’s Florida Panthers), Madison Square Garden (famously home to the NBA’s New York Knicks and the NHL’s New York Rangers), and Toyota Park (home to MLS’s Chicago Fire). Another key way that a stadium may be paid for is by private financing. This, in its most basic terms, is when a private entity - be it a singular person, corporation, or conglomerate - pays the costs of stadium development out of their own net worth. With the prices of stadiums skyrocketing in recent decades, and seemingly only going to continue rising, entirely private financing of stadiums is possibly going to become less common. However, there are still uber-rich owners who will cover the costs in their entirety. For example, Billionaire Rams owner Stan Kroenke footed the bill in its entirety for the Los Angeles Rams (and Chargers) new stadium in Inglewood, California - SoFi Stadium - which reportedly ended up costing the mogul over $10 billion. Perhaps more commonly, this is seen for international soccer stadiums around the world where a stadium (or its renovations) are often handled privately by the club. Take, for example, La Liga giants Real Madrid and FC Barcelona - both of whom paid hundreds of millions of dollars to upgrade their stadiums in the past decade, even taking on debt from banks or corporate lenders to ensure construction take place. Some other stadiums in the US that are completely privately funded include The Bell Centre (home of the NHL’s Montreal Canadiens), the Pepsi Center (home of the NHL’s Colorado Avalanche and NBA’s Denver Nuggets), and Allianz Field (home of MLS’s Minnesota United). Naming rights generally will be discussed in more detail later, but such naming rights deals can be crucial to securing funding at the inception of stadium development. As the name suggests, this typically occurs when a corporation enters into a contractual agreement with a sports team. In its most basic terms, this agreement would provide that the stadium be named after the corporation or however the corporation so directs upon completion. For example, if the Conduct Detrimental Sports Law Blog entered into such a contract with a new soccer stadium that was going to be built, Conduct Detrimental would pay a certain amount of money in exchange for the stadium being known as, perhaps, Conduct Detrimental Field. These corporate sponsorship contracts are tensely negotiated between team and company, with lawyers spending hours researching, communicating with the other party, trying to get the best deal possible, and eventually drafting the contract itself. These naming and sponsorship agreements can be very lucrative for teams building a stadium, but they must also be approached with caution - special attention should be given to licensing terms, exclusivity provisions, and how, for example, naming your new stadium Snapple Arena may violate a contract you already have with Arizona Iced Tea as the official iced tea of your team. Naming rights deals done at the inception of stadium funding can come in many shapes and sizes as well: about a third of the funding for the FedEx Forum (home to the NBA’s Memphis Grizzlies) came from a naming rights deal; but just under 2% of the funding for AT&T Stadium (home of the NFL’s Dallas Cowboys) came from naming rights. As noted, these agreements can contain various different types of provisions beyond mere funding and naming, but they can play a crucial role in the initial funding of a professional sports stadium. In the end, most stadiums are some combination of two or three of these sources - perhaps a 60% public, 30% private, 10% naming rights split, often adding up to over a billion dollars. However, one problem may arise in these combination-funding situations once renovations are approved, requested, or required years after the stadium opens. For example, Chase Field was completed in 1998, but nearly two decades later in 2017 the Arizona Diamondbacks were locked in a lawsuit with Maricopa County over who was responsible for paying for renovations. Legal action is a last resort, to be sure, but the stakes are very high when the threat of relocating a team is on the table. Ideally, these details would be contractually outlined at inception of the stadium’s development, but shortsighted parties eager to make a deal may not see issues coming down the pipeline. That is why stadium financing, no matter the distribution plan, requires careful drafting, hours of due diligence, exposure limitation, contingency plans, and prospective consideration. With the funding taken care of, the project may begin in earnest. Stay tuned for part two of this three-part series, where we’ll discuss the legal steps needed in order to actually build the stadium. Jason Re, George Washington University Law School 3L Twitter: https://twitter.com/JasonReLaw Email: [email protected] LinkedIn: https://www.linkedin.com/in/jason-re/
- The Baseball Exemption: Timing is Everything
On the most recent episode of Conduct Detrimental, we spoke with Jim Quinn who is one of the attorneys for the Plaintiffs in the recently filed case Staten Island Yankees v. MLB.[1] This case is another attack on the nearly 100-year-old antitrust exemption that Major League Baseball was given in Federal Baseball.[2] The complaint alleges that Major League Baseball orchestrated a horizontal agreement among its 30 MLB Clubs to eliminate their affiliation with – and thus to effectively destroy – 40 Minor League Baseball teams.[3] The Plaintiffs are four of the 40 teams that were stripped of their affiliations with their Major League parent Club: Staten Island Yankees, Tri-City Valley Cats, Salem-Keizer Volcanoes, and Norwich Sea Unicorns. Quinn stated on the podcast, “in order for our case to succeed successfully to a trial, we’re going to have to undo the baseball antitrust exemption.” He continued, “is this a slam dunk? I don’t believe it’s a slam dunk by any means. We understand this is an uphill battle, but as I think we said in the complaint, it really is time to put the exemption back into the dustbin of history where it belongs.” Quinn expressed his desire to expedite this case to the Supreme Court. He predicts the next step is for MLB to file a Motion to Dismiss in the Southern District of New York, which Quinn states they will grant because they cannot overrule the Supreme Court. This case will then elevate to the Second Circuit, and they will most likely follow precedent. Quinn emphasized the key issue at hand is: will the Supreme Court grant certiorari? I. Trilogy of Cases Let’s take a step back. Major League Baseball was granted an exemption from federal antitrust law, what is now referred to as “the baseball exemption.” The “trilogy of cases” involved are Federal Baseball, Toolson, and Flood.[4] Federal Baseball granted this exemption on the basis that “the business is giving exhibitions of baseball, which is purely state affairs,” and ruling “the business of baseball is not engaged in interstate commerce,” and further that “any interstate activities were merely incidental to the state exhibitions and thus would not be called trade or commerce in the commonly accepted use of those words.”[5] Major League Baseball was granted an exemption from federal antitrust law because it was not interstate commerce, as required by the Sherman Act.[6] Now that seems absurd, as baseball has 30 teams that span across 17 states, Washington D.C. and Canada. The complaint in Staten Island Yankees v. MLB stated that these 30 MLB Clubs had 160 affiliated MiLB teams, spanning across six MiLB leagues in the United States, Canada, and Mexico.[7] Looking back to Federal Baseball’s era, in 1922 there were 16 teams that spanned across seven states and Washington D.C. Yet, Federal Baseball still considered baseball an “exhibition” and crossing state lines was “merely incidental.” The next time SCOTUS would take up the issue was in Toolson where there was a one-paragraph per curiam opinion upholding Federal Baseball.[8] This is where we see congressional deference when the Court stated, “[w]e think that if there are evils in this field which now warrant application to it of the antitrust laws it should be by legislation.”[9] The next case was the attack of the reserve clause under Flood.[10] Curtis Flood was traded without previous knowledge or consent, and his request for free agency was denied by the Commissioner. As a result, Flood brought suit under the Sherman Antitrust Act. The Southern District of New York (which is the same venue Staten Island Yankees v. MLB has been brought) dismissed the federal antitrust claims pursuant to Federal Baseball.[11] The Second Circuit affirmed.[12] The Supreme Court granted certiorari and affirmed the dismissal of all claims.[13] However, SCOTUS held that “professional baseball is a business, and it is engaged in interstate commerce.”[14] Thus, Flood and its predecessors upheld the baseball exemption for two fundamental reasons: (1) loyalty to stare decisis[15] and fear of initiating a domino effect after upsetting the various interests relying on the exemption and (2) Congress's acquiescence in the holdings of Federal Baseball and Toolson.[16] Since the trilogy of cases, lower courts and circuit courts have relied on stare decisis and congressional deference to avoid overturning Federal Baseball and the Supreme Court has denied certiorari. The Curt Flood Act was Congress’s chance to take action, but they only carved out the reserve clause and left everything else within the exemption (including Minor League Baseball, which is at issue here). Flood was a catalyst for free agency, and is the reason players like Max Scherzer can sign a three-year $130 million contract. However, the failure to remove the whole exemption is why we are in the present situation and the reason Staten Island Yankees v. MLB was filed. II. Is the Supreme Court prepared to overturn Federal Baseball? If you are familiar with the above case precedent (among others in this sphere) then you are probably thinking this is another case that will get dismissed under stare decisis and denied certiorari by SCOTUS. However, this case’s complaint is using a recent SCOTUS ruling, Alston v. NCAA, as a backbone for their argument because it appears the bench is willing to reconsider the baseball exemption based on the analysis in Alston. The Court went out of its way to cite to Federal Baseball as an “aberration” and that the Court has failed to extend such exemptions to other sports leagues.[17] Alston showed the world that the current SCOTUS bench may be willing to grant certiorari and hear a challenge to the baseball exemption if the right case presented itself. On Conduct Detrimental, when discussing the Alston opinion and how the Supreme Court created the baseball exemption when it didn’t have the power to, Jim Quinn stated that “they [the Supreme Court] pointed to baseball as an example of something that was created but they now realize was essentially non-sensible.” Quinn reasoned, “when you look at the Gorsuch opinion and Kavanaugh’s concurrence, you can see there was a real interest here on the part of at least some members of the Supreme Court.” Quinn distinguished this case from the most recent failed attempts, Wyckoff[18] and Right Field Rooftops,[19] because this case has much broader implications than previous cases and the Court is more inviting of a challenge today than it was in 2018 based upon Alston. Quinn stated the Wyckoff case didn’t involve the baseball antitrust exemption per se because it was brought under the Donnelly Act. Rather, the issue was whether the Donnelly Act was so close to the antitrust exemption that the exemption preempted the Donnelly Act, and the courts ruled that it did, subsequently, the Supreme Court denied certiorari because it was too narrow of an issue. Quinn reasoned that the Supreme Court determined the Right Field Rooftops case was not the right case to take on this antitrust issue because the core issue was whether fans could sit on their rooftop and watch the Cubs games. Quinn stated “if you look at what happened in our case, where a group of wealthy people get together and decide that they’re going to eliminate the business of 40 less-wealthy people…that has an impact not only on the 40 minor league teams, but it has an impact on all of the towns throughout the United States. In many of these cities and villages and small towns, the only sport available is minor league baseball and MLB owners decided they were just going to eliminate that for 40 towns and villages all over the country. Seems to me it has much broader implications than whether or not you can sit on a roof and see into Wrigley Field, or whether or not a different statute applies under the antitrust laws.” a. Key Justices Chief Justice Roberts, Justice Thomas and Justice Alito have shown interest in similar cases, which may indicate what their analyses might be here, should they grant certiorari. For example, in Leegin, the Court reversed a 96-year-old ban on price floors, making it an automatic violation of antitrust to have resale price maintenance agreements.[20] Three of the five Justices who joined in the Leegin majority opinion still sit on the bench today, namely Chief Justice Roberts, Justice Thomas and Justice Alito. Whereas only one of the four Justices who joined in the dissent is still on the bench, Justice Breyer. In Leegin, the Court found that stare decisis was not as significant when reviewing the scope of the Sherman Act, while also finding that congressional deference has less force regarding the Sherman Act.[21] The Court went on to state that when there was a “widespread agreement” that the precedent set out is different than what the original court analyzed, the precedent may be deemed inappropriate.”[22] On the issue of stare decisis, Justices Roberts, Thomas, and Alito may have already shown their hand as well. In Kimble, based on stare decisis, the Supreme Court refused to overturn a 50-year-old precedent that a patent holder cannot charge royalties for the use of his invention after its patent term has expired.[23] In Kimble, the Court explained that to overrule a case, there needs to be a “special justification” that goes above and beyond the argument that the precedent was wrongfully decided, and without such a special justification the Court recommend the claim for congressional action.[24] Justices Roberts, Thomas, and Alito dissented in Kimble stating, “[s]tare decisis is important to the rule of law, but so are correct judicial decisions…Revisiting precedent is particularly appropriate where…a departure would not upset expectations, the precedent consists of a judge-made rule…and experience has pointed up the precedent’s shortcomings.”[25] Dicta in Alston, written by Justice Gorsuch in which it was a unanimous decision, clearly implies there is a “widespread agreement” that the precedent in Federal Baseball is different than what the original court analyzed. Therefore, considering the Justices’ actions in Leegin, Kimble, and now Alston this bench may be prepared to deem Federal Baseball’s precedent inappropriate. The last time a near 100-year antitrust exemption fell, Chief Justice Roberts, Justice Thomas, and Justice Alito joined in the opinion for Leegin. In Alston, Justice Gorsuch wrote powerful dicta taking issue with the baseball exemption, and Justice Kavanaugh wrote a dissent that, besides completely destroying the NCAA model, gave a traditional analysis of antitrust law which may give some insight into his analysis for Staten Island Yankees v. MLB and the baseball exemption. In the most recent episode of Conduct Detrimental, Quinn reminded listeners that Justice Sotomayor has some familiarity with baseball cases because when she was a District Court Judge in New York, she ruled in favor of MLB players to end the strike in 1995. Chief Justice Roberts, Justice Thomas, and Justice Alito have shown they are willing to put stare decisis aside when judicial precedents have been wrongfully created. These Justices, along with Justice Gorsuch and Justice Kavanaugh, may be the proper bench for the next case challenging Federal Baseball and the baseball exemption to be heard in the Supreme Court of the United States. Perhaps the time has finally come for the Supreme Court to step up to the plate. For more information on this topic, check out our most recent episode of Conduct Detrimental with Jim Quinn. Mike Lawson is an Associate for O'Connell and Aronowitz in Albany, NY. He is the Producer of the Conduct Detrimental Podcast and can be reached on Twitter @Mike_sonof_Law. [1] Staten Island Yankees et al. v. Major League Baseball, 1:21cv10876 (filed Dec. 20, 2021). [2] Fed. Baseball Club of Baltimore, Inc. v. Nat’l League of Prof’l Baseball Clubs, 259 U.S. 200 (1922). [3] Complaint at 1. [4] Fed. Baseball Club of Baltimore, Inc. v. Nat’l League of Prof’l Baseball Clubs, 259 U.S. 200 (1922); Toolson v. New York Yankees, Inc., 346 U.S. 356 (1953); Flood v. Kuhn, 407 U.S. 258 (1972). [5] Fed. Baseball, 259 U.S. at 208-9. [6] The Sherman Antitrust Act, 15 U.S.C. § 1 (1890). [7] Complaint at 49. [8] Toolson v. New York Yankees, Inc., 346 U.S. 356 (1953). [9] Id. at 356-57. [10] Flood v. Kuhn, 407 U.S. 258 (1972). [11] Flood v. Kuhn, 316 F.Supp. 271, 272 (S.D.N.Y. 1970). [12] Flood v. Kuhn, 443 F.2d 264, 267–68 (2d Cir. 1971). [13] Flood, 407 U.S. at 285. [14] Id. at 282. [15] Latin for “to stand by things decided.” [16] Flood, 407 U.S. at 282-83. [17] Alston v. NCAA, 141 S. Ct. 2141, 2159 (2021). [18] Wyckoff v. Office of the Com’r of Baseball, 138 S. Ct. 2621 (2018). [19] Right Field Rooftops v. Chicago Cubs Baseball Club, 138 S. Ct. 2621 (2018). [20] Leegin Creative Leather Products, Inc. v, PSKS, Inc., 551 U.S. 877 (2007). [21] Id. at 899. [22] Id. at 900. [23] Kimble v. Marvel Entertainment, LLC, 135 S. Ct. 2401 (2015). [24] Id. at 2402. [25] Id. at 2415.
- The Delicate Legal Art of Financing, Building, and Naming a Stadium in America: Part 2 - Building
Have you ever looked at your local professional sports stadium and wondered how it came to be? It’s easy to overlook just how monumental a task it is for such a building to come into existence - a confluence of perfect conditions, plus hundreds of hours of due diligence, hard-nosed negotiations, countless contracts, and more goes on behind the scenes before such a dream can become a reality. Three key areas that should be explored are the financing of the stadium, the land use for building the stadium, and the naming rights. In this second article of a three-part series, we’ll dive into the basics of actually building a stadium. Putting hammer to nail notwithstanding, the name of the game when building a stadium, from a legal perspective, is “land.” Land, on which a stadium would be built, can make or break a stadium deal before it has had a chance to make it to paper. An initial key step in building a stadium is location and area assessment. Various considerations go into an assessment such as this - proximity to public transit stations, availability of parking, capacity for a stadium, infrastructure, visibility, just to name a few. Generally, the mission is to get an idea of the possibilities and constraints that a potential site maintains. This also includes environmental considerations, site topography, and neighboring community interests. Importantly, the zoning regulations must be checked to ensure that the area in question allows for stadium development. The second step is in-depth market analysis. This is a very fact intensive analysis that can cover any number of areas. Two good places to start would be supply and demand. Supply could refer to any competing venues, other entertainment in the area, the public interest in a new stadium, other sports teams in the area, and other market saturation factors. Demand would include things such as the potential size of the fanbase, the expected revenue from that fanbase, what people would be willing to pay to get into the stadium, and what that would say about the matchday atmosphere. Further, the political, social, economic, demographic, and technological aspects of a population might play a part in a decision to pursue a site, and public surveys can help aid in this process. Consider things such as capital growth or decay in the area, purchasing power of potential stadium visitors, government support for the sport infrastructure, and input from existing fan groups. Another crucial step is a comprehensive conceptualization, design, and feasibility plan for the stadium. This includes considerations both inside and outside of the stadium, with an eye on what will fit in the space, both physically, legally in terms of zoning and area restrictions, and in the context of the surrounding area. The stakeholders must settle on a vision for what they want the stadium to look like, and a design firm must be hired to create renderings that can be worked and re-worked until the parties think it’s just right. This goes far beyond the color and style of the exterior, and dives into topics such as general seating capacity, VIP box system, food vendor and bathroom layouts, jumbotrons and other screens, and more. How many floodlights will be needed, and from what angle? Will the stadium be a closed top, a retractable roof, or open air? What material is the playing surface - e.g. turf or grass? Where will the media stations be set up to get the best camera angles of the action while not restricting sightlines of attendees? These questions are just the start. Further, a possibility that may arise is the multi-use potential of the site. This includes both within the stadium (i.e., different sports being played in the same arena), but also other developments on the site outside the stadium, such as housing, retail, and entertainment projects all in one. Finally, the fourth step is legally securing the land necessary, on which the stadium will be built. At times, this may be a relatively straightforward transaction - one party has land for sale, the other has the funds to secure it. For example, to build what would eventually become SoFi Stadium, Stan Kroenke bought a 60 acre lot in Inglewood, California for a reported total of around $100 million. Other times, it’s not as simple. Take, for example, New York City Football Club’s goal of bringing a soccer-specific stadium to the Bronx. One hurdle standing in their way was acquiring a pocket of land within eyesight of Yankee Stadium, a plot of land which currently holds a parking garage. Ultimately, negotiations for the purchase of the land fell apart over concerns regarding the parking spots that the New York Yankees required, and were contractually promised. Disputes may arise over zoning, what the development is used for, logistical or infrastructure concerns, price negotiations, or any other hitch under the sun. Land, particularly in a major metropolitan area like New York, is a hot commodity, and not without its fair share of complications. Negotiation before a sale of property is natural, and a very fact intensive analysis with all interested parties is key, but in theory it is not a zero sum game, and these agreements can be fleshed out amicably. Interestingly, a handful of city governments across the country have used their Constitutional eminent domain powers to secure land for a stadium, including for projects in Brooklyn, Washington, DC, and Los Angeles. In these situations it is paramount that the rights of the private property owner are respected and upheld. The exercise of eminent domain to secure lands for a sports stadium is a controversial practice, and generally seen as a last resort when holdout landowners refuse to sell the land necessary for a stadium project to begin. While the government then must negotiate a fair market price for the land, the intangible value is often impossible to replace. Still, the practice persists, and is admittedly likely a pleasing option from a professional team’s point-of-view. With the (properly thoroughly researched) land secured, the design plans approved, the market factors weighed, and the paperwork complete, construction is set to begin. One of the major questions still remaining is… what (and how) does the stadium get named? Stay tuned for part three in this series, where naming rights will be looked at in further detail. Jason Re, George Washington University Law School 3L Twitter: https://twitter.com/JasonReLaw Email: [email protected] LinkedIn: https://www.linkedin.com/in/jason-re/
- The NHL’s COVID-19 Situation, and its Effect on the Olympics
The National Hockey League announced on Monday the league would pause on December 21st, after games were completed. They began the holiday break earlier, the original starting date was Friday, December 24th. This league-wide shutdown is due to the COVID cases surging at an alarming rate. The NHL shutdown includes international games being postponed, and the only games that were allowed to be played Monday and Tuesday were games between United States teams and games between Canadian teams. No U.S.-Canadian games were allowed due to the border crossing, and the strict travel restrictions imposed on entering and leaving each country. The Associated Press reported 15% of the 700+ players were in the virus protocol. Once a player enters the virus protocol, they are required to miss team activities for at least 10 days. However, the treat that has been exciting to see is the American Hockey League players playing in the NHL, and making an impression on the NHL clubs’ general managers. Teams had juggled lineups, such as an 11 forward and 7 defensemen lineup rather than the traditional 12 forward and 6 defensemen lineup. The Blues had to play a week’s worth of games shorthanded. They played with 17 players rather than the typical 18 players. In order to get that “emergency call-up,” the NHL requires the team play a game shorthanded. The NHL took the right step, though, by postponing this week’s slate of games after tonight, and the teams that were scheduled to play the games across the borders are supposed to be made up during the weeks that were included for the Olympic break, as reported by Andy Strickland of Bally Sports Midwest. Strickland’s report includes that the Blues will make up games against Ottawa and Toronto at Canadian Tire Centre and the Scotiabank Centre respectively, during the weeks that make up the Olympic break. All other teams will make up their respective games during those weeks. Will the players be allowed to participate in the Olympics? The Olympics are an honor to participate in; however, the players that participate in the Olympics are not compensated, and reported by various sources, should any player or employee catch Covid in China, they will quarantine in China, fly back to the U.S., and quarantine in the U.S. too. Since the NHL plan to play makeup games during that stretch, it may be impossible for the players and executives to fly over to China for the Olympics. According to Yahoo Sports and other outlets, there is only one player in the NHL that is unvaccinated, it is the Red Wings’ Tyler Bertuzzi. The NHL has made the right call to begin the holiday break early, but this means the season’s end will have teams playing games with very little rest in between games. The NHL may need to force the players from participating in the Olympics to fit all eighty-two regular season games for each club. Alex Patterson is a 3L at Thomas M. Cooley Law School in Lansing, Michigan. He played football for seventeen years as an offensive and defensive lineman. He graduated from Lindenwood University-Belleville in 2018 with a Bachelor's in Sports Management. He can be followed on Twitter @alpatt71.
- The Delicate Legal Art of Financing, Building, and Naming a Stadium in America: Part 3 - Naming
As noted in Part I, naming rights can be a crucial piece of securing funding for a stadium to be built - providing for tens of millions of dollars. To recap - naming rights deals are financial agreements under which a corporation or an individual purchases the right to name a stadium or arena, potentially along with other benefits, for a set period of time in exchange for a financial payment. The parties involved generally include the stadium owner, the professional team, and the potential purchaser. Naming rights are sometimes negotiated years after funding and construction is completed. One of the first stadium naming rights deals was agreed upon in 1987, when the “Los Angeles Forum” was renamed the “Great Western Forum”. Since then, naming rights have become one of the most lucrative revenue generating aspects of developed stadiums. In fact, mere months ago, the sports world saw what is believed to be the most lucrative naming rights deal in history completed. The Staples Center - home to the NBA’s Los Angeles Lakers, the NHL’s Los Angeles Kings, and the WNBA’s Los Angeles Sparks - was renamed to the Crypto.com Arena in November of 2021. The deal was worth an estimated $700 million. Today, only a handful of stadiums and arenas in the nation’s top professional sports leagues are without a naming deal - some by choice (e.g. Madison Square Garden or Lambeau Field), while some may have had a deal that just recently wasn’t renewed and are shopping for suitors (a recent example being when the Miami Heat’s naming rights sponsor, American Airlines, refused to renew their deal in 2019). At times, corporation and team are a natural fit; such as Coors Brewing (a Colorado corporation) owning the naming rights to the Colorado Rockies’ stadium, or Heinz owning the naming rights to the Pittsburgh Steelers’ stadium. Other times, mega-corporations rule the day, with large banks, airlines, and insurance companies often making the deals. Briefly mentioned in Part I, these naming rights and sponsorship agreements can contain any number of provisions, restrictions, and licenses. As noted in Part I of this series, this includes things such as exclusivity provisions, explicit licensing terms that dictate the extent of the relationship, publicity arrangements, intellectual property considerations, and more. To that end, today, many naming right agreements often go beyond the name of the stadium itself. Certain packages may include the naming rights to the entryways, the field itself, or a concourse. As an example, the Conduct Detrimental Stadium may have the Cheez-It Concourse, or the CitiBank West Gate, or any number of pieces of the stadium sold off to be named by a corporate sponsor. Other types of packages may include partial team ownership, or as a part of a larger sponsorship agreement. The owner of the professional sports venue, naturally, receives substantial revenues to pay for construction costs or high player salaries by selling a package deal. The benefits for the corporate sponsor generally include the amenity clause. This contractual clause sets forth the sponsor's amenities such as principal identification of the building; advertising signs on the building, at the entrances, and even on the playing surfaces; it may include advertising in the official program; merchandising in the luxury suites; promotional ticket discounts tied to the corporation; media-based benefits such as radio and television spots; and even logos on everything from trash cans to tickets to uniforms. Further, These may include clauses of an aesthetic nature (stadium designs, colours and logos), relating to the use of the parties’ trademarks in advertising, tax issues, the jurisdictions involved, the players’ image rights (each managed on a personal basis), practices such as ambush marketing and the use of the facility name upon termination of the naming rights agreement.. The variance in amenities included in a contract are one of the reasons that naming rights deals can vary so wildly in price. Finally, of course, before signing, both parties naturally must take into account the local legislation that may affect, or restrict, the deal in any way - such as permits, advertising laws, economic regulations, and more. The cost of these naming rights deals naturally depends on a number of factors. One such factor is the presence of an established and successful sports franchise with a loyal fanbase, without which most investors would lose interest in the stadium. Corporate sponsors also generally consider the total number of major events the stadium will host in a given year, including sporting events, concerts, expos, and any other special events that the stadium may attract. Another factor that contributes to the price of a naming deal involves Ultimately, individual naming rights deals are largely a product of the economic situation of the time the agreement was negotiated in, the amenities included, and the solvency of an individual business to pay. Crypto.com may have paid $700 million for the naming rights to the Staples Center, but it is just as important to remember that Tropicana pays about only $1.6 million per year on average for the naming rights for the Tampa Bay Rays’ stadium. Given the recent and ongoing COVID-19 pandemic, and how it notably emptied stadiums for months, one potential progression that naming rights law and contractual negotiation will likely see is a more prominent usage, and thoroughly fleshed out drafting of, a force majeure clause. Such a clause allocates the risk of loss if performance is hindered, delayed, or prevented because of an event that the parties could not have anticipated or controlled - and if recent times have showed us anything, it is that you never know what is coming, so it’s best to plan for unforeseen events as best as possible with such a clause. A clause in this context may, for example, allow a corporation that is paying $10 million dollars per year for naming rights of a stadium to, for example, repudiate if a qualifying intervening event occurs. Another potential area for progression is in the virtual space through video games or virtual reality - offering an entire new frontier of potentially endless possibilities for naming rights. Imagine - a company looking to boost their sales could reach an agreement with EA Sports to have a virtual stadium named after them to use in the video game itself; or on a grander scale, the naming rights opportunities for battle-royale style video games such as Call of Duty Warzone are unlimited. The intersection between sports, video games, and technology is an ever-growing area of convergence, and opportunities will surely become more and more prevalent in the coming years. Ultimately, whether in the real world or virtual, naming rights deals are a complex, but extremely beneficial and synergistic tool for all parties involved, in a variety of contexts, and tailored to fit all parties specific needs. When negotiating and drafting such a deal, it is important to remember that it is not a zero sum game and both parties will benefit: by entering into a naming rights deal with a famous sport team, a company will be increasing their brand awareness, reputation and, accordingly, its sales, by associating their name and brand with such a famous institution. On the other hand, the famous club will be able to obtain funds from a non-traditional revenue stream, increasing its investment capacity for other areas of interest (i.e. transfer of new players, advertising investment, among others), and more. Jason Re, George Washington University Law School 3L Twitter: https://twitter.com/JasonReLaw Email: [email protected] LinkedIn: https://www.linkedin.com/in/jason-re/
- How will the NHL Pause Impact the Rest of the Season?
When the NHL announced an regular 82 game season, spectators in the stands and no conference bubble fans and players were overjoyed. The 2020 – 2021 season experienced a game cut, no fans in the arenas and teams only playing other tri-state teams. While it was great that hockey was back, it was not the same. The 2021 – 2022 season meant that hockey was now back in full force and fans cold once again experience the sport they love. During the beginning of the season games were played and few players were placed in Covid protocol. It seemed that the season would be able to continue, and players would be able to participate in the 2022 Olympics. However, in November player Covid cases began to increase in the league and teams like the New York Islanders had to reschedule games due to outbreaks. The Montreal Canadians did not let fans into the arena in their game against the Philadelphia Flyers over the spike in cases. This week, the NHL became the first league to press pause on the 2021 - 2022 season due to concerns of rising Covid case. The NBA and NFL have also seen a surge in Covid cases but neither have placed a pause on their seasons. Historically the NHL schedules a three-day Christmas break when no regular season games are played on either Christmas Eve and Christmas Day. However, the league has stopped all operations on Wednesday December 22nd. This week alone, 11 teams suspended operations and the league postponed all games through Christmas that involved travel between Canada and the U.S. Over 15% of the league's players were in virus protocols as of Monday December 20th.[1] The pause will be from Wednesday through Saturday to control the Covid outbreaks that are happening around the league.[2] Players, coaches and other team staff cannot report to facilities during the pause. Players are set to report back to team facilities on Sunday and resume daily testing. The NHL schedule is set to resume on Dec. 27.[3] As a result of the pause, 50 games had to be postponed which is a material damage to the schedule which triggers an opt-out clause for player participation in the Beijing Olympics.[4] The NHL announced that players will not be allowed to participate in the Olympics due to Covid concerns. The biggest question now: what will happen to the remainder of the NHL season? Will it be like 2020 when the season was suspended then reinstated in July? Or will the NHL come up with a solution to keep the season going? As of right now there is no answer to either of those questions. The NHL did put into place new Covid protocols. Players and staff are now subject to daily Covid testing, instead of once every three days. Social distancing measures have also been reinstated as well as restrictions on where players can go when they are not at home.[5] Every player in the league is currently vaccinated against Covid except for Detroit Red Wings forward Tyler Bertuzzi. As of right now the NHL and NHLPA have recommended the vaccine booster to players but do not have plans to mandate it.[6] Like other hockey fans, my hope is that players and staff stay safe, and the NHL will be able to finish the season. Jessica Shaw is the Secretary of the New York Law School Sports Law Society. She can be reached on Twitter @JessicaShaw22. [1] Kaplan, E. (December 21. 2021). NHL to pause season Wednesday, resume as scheduled after Christmas break, amid covid-19 cases. ESPN. https://www.espn.com/nhl/story/_/id/32913690/nhl-pause-season-wednesday-resume-scheduled-christmas-break-amid-covid-19-outbreaks-sources-say [2] Id. [3] Id. [4] Id. [5] Id. [6] Id.
- Turning Back the Clock on Forfeit Policies in College Basketball
Coming into the college basketball season, things were a lot different than they are at this moment in time. Fall sports were going as smoothly as possible with little to no cancellations due to COVID-19. As a result, the optimism was there to think that Winter sports including basketball would not be tremendously affected by contact tracing, pauses, and cancellations. Thus, conferences across the nation established that if a team cannot play due to COVID issues, they would suffer a loss in the conference standings. However, as we sit today, the optimism many held has obviously been thrown for a loop. Dozens of games have been canceled over the course of the young season, with many coming in the last week or so. In Men’s Basketball alone, 40 programs have had to go on COVID pause this season. With the forfeit policies in place, some teams are already taking losses and falling behind in their respective conferences. At the time of all these conferences coming out and announcing their policies, the consensus was in favor of the decisions. Encouraging humans, but in this case student athletes, to get the vaccine seemed like a smart idea. In many cases, if teams met a certain threshold in terms of vaccinated players, they weren’t required to be tested without showing symptoms. But with Omicron spreading at a rapid rate, these forfeit policies may be a little out of date and could throw a wrench in the integrity of the college basketball season. Last week, the NCAA’s Executive Vice President Dan Gavitt said that rules regarding the minimum number of games a team must play to be eligible for the NCAA Tournament could be altered.. Current rules stipulate that a team must play 25 games to be eligible for the postseason. That, however, could change. "It’s not something we need to do right now but if we get into mid to late January and it’s an ongoing problem, it’s something we might have to look into," said Gavitt. While the NCAA doesn’t have the same control over regular season contests like they have over the Tournament, conferences might want to look at their forfeit policies to adjust to the current times. The Omicron variant has changed the game, and as a result, the game's policies need to change as well. Last season, conference games were considered “no contests” even if only one team contributed to the cancellation due to COVID-19. That policy might need to return as soon as possible in college athletics this season. Ohio State is a team who is reported to be fully vaccinated, yet they’ve had breakthrough cases disrupt their season. Should they be taking conference losses which could affect their postseason chances just for a case of bad luck? DePaul is already 0-2 in the Big East without playing a conference game. On the other side, St. John’s is already 1-0 without having scored a point in league play. This list will only grow longer if conferences don’t adjust their policies to reflect 2020-2021’s quickly. It’s not ideal, but it’s the world we’re living in right now. Hopefully, the Omicron variant doesn’t cause as much havoc on the season as previous strands did in the past, but conferences need to take proactive steps to ensure the best teams are eligible for the Tournament. You’d hate to see a team capable of cutting down the nets in March be saddled with losses they didn’t deserve. It’s time to turn back the clock on forfeit policies in college sports. Brendan can be followed on Twitter @_bbell5.
- Lamar Jackson: Biggest NFL Payday in History Incoming?
Lamar Jackson may be in for the next big contract in the NFL. Patrick Mahomes got $450 million over 10 years, [1] and I am not saying that Lamar Jackson’s new contract will be anything close to that, but he deserves a payday. I should preface this with the fact that I am a massive Lamar Jackson fan, which led me to write this article. It is the perfect opportunity to explain why he is so good despite the criticism he gets. If you are reading this and you do not see Lamar’s talent, go watch some highlights and you will see how exciting he makes the game. He impacts the game the way Stephen Curry has modernized the three-point shot in basketball or the way Lionel Messi revolutionized the modern game of football. But I digress, and now on to why he may get a massive contract in the near future. So now, onto the numbers. Lamar can negotiate a new contract any time between now and 2023, however, if the Ravens wait until 2023 to sign him, that requires putting him under a franchise tag, which eats a ton of salary cap space. That is not in their best interest, which is why this contract must be coming soon. If the Ravens can agree to a new contract before they are forced to franchise tag him, then they are able to more evenly distribute how much cap space his contract accounts for per year. It is easy to see why Lamar is deserving of a huge contract, but it can be broken down most clearly using some statistics. Michael Vick is, by some, regarded as the best rushing quarterback of all time. Yet he has never had multiple seasons with 1,000 rushing yards over his 13-year career. [2] Lamar Jackson had two in his first three seasons. He’s also the record holder for the most rushing yards and rushing attempts for a quarterback in history. [3] He set that record in 2019, when he ranked sixth in rushing yards in the NFL. Not to mention he did that as a quarterback. To recognize the scope of this, he finished above Dalvin Cook and Joe Mixon, two of the premier running backs in the league. [4] Yet, people still made the argument that he didn’t deserve the MVP award he won in 2019 because he didn’t fit the model of the “traditional” quarterback. To that, you can cite his record for most games with a perfect passer rating in a season, in which he has the joint record with Ben Roethlisberger, one of the premier pocket passers in NFL history. So now that it’s been established that he is one of the best, if not the best, rushing quarterback in NFL history, I hope that it can clearly be seen why he deserves somewhere in the region of that Patrick Mahomes contract I cited earlier. So, if all those statistics and comparisons couldn’t convince you why he deserves a massive contract, watch him play and you’ll understand the impact he has on the game. I’ve never seen another quarterback handle 20+ carries a game, and still play at full speed in the fourth quarter. I have never seen, and I don’t think I ever will see, a more true dual-threat quarterback in the NFL. To cap this off, let me drop this quote that Lamar’s coach, John Harbaugh, said to him during his 2019 MVP season. He simply asked, “Do you know how many little kids in this country are gonna be wearing the number 8 playing quarterback for the next 20 years?” [5] This just speaks to the way Lamar Jackson has revolutionized the position like no one in NFL history, paving the way for rushing quarterbacks to thrive, and making an impact that goes beyond even football itself. It’s clear and obvious that Lamar’s contribution to the game extends into the hearts of young football fans around the world, and even though no dollar amount can be placed on that impact, Lamar deserves as much money as the Ravens can give him. Jon Trusz is a Junior at the University of Connecticut studying Political Science and Communications, and can be reached on LinkedIn under his name, or by email at [email protected].
- The Legal Framework to Create a New Sport
THIS IS NOT A SPONSORED POST When looking at sport leagues such as the NFL, NBA, NHL, or even the PLL, it’s hard to imagine a day when it was not a (more or less) well-known entity. However, like all things, before it sees the fruits of massive success, there is a period of grinding and growth. So hypothetically speaking, what if someone wanted to start a new sport? Take the case of Canadian based growing sport, PurInstinct. PurInstinct is a sport that combines principles of football, rugby, soccer, and volleyball. It has spread throughout Canada, drawing fans and players running the gambit from elementary school aged children to CFL (Canadian Football League) players. More recently, there have been pop-up events also throughout the United States. I was fortunate to attend the “launch” in Miami on December 18-19th 2021. My first impression after having played the game is 1) wow this is a lot of running, but seriously fun 2) what’s next for the game? Truthfully, I can see how it’s made a run through Canada and am beyond interested to see it take hold in the States as well. However, this raises a question, if it does gain popularity, what exactly can/will this look like? There are a handful of considerations. 1) if adopted by other schools or even on a pro-level, will there be some sort of league? If so, who or what will oversee it? Additionally, what exactly would this association of sorts look like? 2) What else is necessary in order to help the game become more established. Talking to PurInstinct creator, Dominique Soucey, one big consideration and step that he is eyeing is setting up a US corporate entity. While this entity form has not yet been determined, there are a couple of routes it could go. Fans generally see the league format, but very rarely see what goes on in the front office and in corporate offices throughout. Entity formation is crucial for any business in the United States, and there are different options of corporate structure that can impact corporate functions. A cursory overview of six of the most popular are below: Sole proprietorship Regarded as the simplest business entity, a sole proprietor is owned by one person (or a married couple) that acts as the sole owner and operator of the “company.” When a business launched and there is only one owner, under the law, it is presumed to be a sole proprietorship, and accordingly, there is no need to register with a state. That being said, the owner may still need to file for local business licenses and permits, and the proper research should be done regardless to ensure that no snares arise while launching the business. General Partnership A general partnership is much like a sole proprietorship in that there is an automatic presumption associated with it meaning there is no need to file with a state. When a business is started with two or more owners, it is presumed to be a general partnership, and under this formation, all partners are to actively manage the business and accordingly share in its profits and losses. Limited Partnership The other type of partnership is a Limited Partnership (LP), which is different for a General Partnership in that it is a registered entity. In forming a LP, you have to file the proper paperwork with the state. Also under this entity format, there are “classes” of partners. The first is the General Partner, who owns, operates, and assumes liability and responsibility for the business (including debts), and Limited Partners, who are merely investors. A sidetone, Limited Partners are sometimes referred to as “silent partners”. Also under this entity format, Silent Partners don’t have any control over business operations, pay fewer taxes, and have fewer liabilities associated with their partnership. “C” Corporation A “C” Corporation is an independent entity that exists separately from the company’s owners. A C Corporation has shareholders, who are considered the owners, a board of directors, and officers. Worth noting though albeit unconventional, one person can perform all these functions. With a C Corporation, there are more regulations and laws that the company must adhere to, and these regulations, fees, and filing documents both for tax and formation purposes vary on a state-by-state basis. “S” Corporation “S” Corporations are known for “pass-through taxation,” which allows the corporation’s profits and losses to pass through to the owners’ personal tax returns. Essentially, it allows the business to reap the benefits afforded to a partnership (being tax exempt) while still maintaining the traditional corporate structure. Otherwise, it is incredibly similar to a “C” Corporation. Limited Liability Company (LLC) The last most noteworthy corporate entity format is the Limited Liability Company (LLC). Much like the standard corporation, the LLC offers limited liability protection to the owners, but the LLC also have less ongoing requirements and are similar to sole proprietorships and partnerships in that regard. Another noteworthy benefit to this format is the ability to decide how the IRS will tax the company; it can either be treated and accordingly taxed as a “C” Corporation or can be subject to pass-through taxation, making it more like an “S” Corporation. If someone were looking to start a sport, in addition to deciding what sort of league format it would use, it also needs to think about the business structure, as it will be subject to tax, and the owners will have to decide how to handle liabilities that that company could incur. While this list is not exhaustive, if one were to also consider starting a new sport, these are considerations that must be made if it would like to see long term success. As it relates to PurInstinct, at least getting started, perhaps it should take the form of a single-entity league. Under a single-entity league, each team would be a registered trademark owned and operated by the league, and accordingly, each team is not its own independent collective, but instead under the governance of the league. Said differently, every facet of every team is owned and operated by the league, ranging from sponsorships to contracts with the players and everything in between. A prime example of a single-entity league in the United States is Major League Soccer. The MLS is a not a collection of franchises, but instead each team does have an owner-operator, but they are shareholders within the league. In the MLS, the league, not individual teams, contract with the players. Under this form, one organization, in this case PurInstinct, would in theory own all the teams, and accordingly be responsible for paying all athletes and handling all other matters including but not limited to sponsorships, media agreements, marketing, and merchandising. This is different than a multiple-entity league, an alternative to the single-entity league format. In a multiple-entity league, teams opt into the league and in participating, will be subject to the league’s rules and regulations. In theory, under the multi-entity league form, should a team no longer wish to participate, it has the ability to leave the league. As previously mentioned, each team individually is responsible for media agreements, sponsorships, and contracting with players. An example of a multiple-entity league is the NBA. The NBA is a limited corporation in which each team is a franchise and its own corporation. As each team is its own corporation, each team is subject to different ownership. For example, the Washington Wizards is owned and operated by Monumental Sports & Entertainment, which is owned Ted Leonsis, whereas the Lakers team is technically owned and operated by the Buss Family Trust, in which Jeanie Buss is the controlling owner. Under this form, each team individually, not the league itself, contracts with the players. As previously mentioned, under this form, should Leonsis not like the direction the NBA is going in, in theory, he could leave the league. Additionally, each league reserves the right to revoke a franchise/club. While I will not comment on what corporate structure it should take, these are the possibilities, and it would be a good move to weigh the pros and cons and also consult with an attorney to make the best decision. As for the part that the fans see, I do firmly believe that at least starting out, a single-entity league is the way to go. I’m excited to see what’s next for the game and highly recommend anyone looking for something new to check out how to get involved or even how to play the game and try it out in their own respective communities. More information on the game can be found here. Stephon Burton is a 3L at Duquesne University School of Law in Pittsburgh, PA. He obtained his undergraduate degree from Washington & Jefferson College in 2019. He can be contacted via email at [email protected], on twitter @stephonburton3.
- Is the New York Yankees' Facial and Grooming Policy in Violation of Title VII?
On opening day, April 11, 1973 former New York Yankee team owner George Steinbrenner was present to watch his recently acquired Major League Baseball franchise. As players warmed up pre-game, Steinbrenner immediately noticed some players had hair that was long enough to be visible below their collar. As a result, garnishing inspiration from his veteran status with the U.S. Air Force, as well as having a successful tenure in corporate America, Steinbrenner adopted the still standing New York Yankees Facial and Grooming Policy. The official employment policy establishes that, "All players, coaches and male executives are forbidden to display any facial hair other than mustaches (except for religious reasons), and scalp hair may not be grown below the collar. Long sideburns and 'mutton chops' are not specifically banned.”[1] For the last 47 years, Yankee players have had little to no input as it pertains to their bodily autonomy in regard to facial hair and hairstyle. It begs the question, is any of this legal? In 2019, Sheryl Ring established how the policy is likely in violation of New York state law. Last year, Dylan Harriger, approached the issue from a first amendment standpoint. Here, I seek to assess the legality of the policy as it may hypothetically pertain to facial hair, Pseudofolliculitis Barbae (PFB), and Title VII of the Civil Rights Act, 42 U.S.C. s 2000e et seq. (Title VII). Title VII prohibits discrimination in virtually every employment circumstance on the basis of race, color, religion, gender, pregnancy, or national origin. It applies to all employers with 15 or more employees. The purpose of Title VII's protections is to require employers to consider only objective, job-related criteria in making employment decisions. An employment practice may be in violation of Title VII as a result of the employment actions discriminatory “disparate impact” or “disparate treatment”. A claim arguing that an employment grooming and facial hair policy is discriminatory, such as the Yankees, would likely have a discriminatory disparate impact as an employer’s facially neutral policy has a disproportionate and unintended effect on a protected race. In a disparate impact claim under Title VII the plaintiff is required to prove their prima facie case by identifying a specific employer policy or practice that applies to all employees equally. The Plaintiff must prove: (a) The Policy, procedure, or practice is a barrier to employment opportunities; (b) for members of a protected class; (c) has an adverse impact on that protected class; and (d) the adverse impact is caused by the specific employment practice. Subsequently, the defendant can prevail by showing that the requirement is job related and consistent with a business necessity. An employer can sustain this defense by demonstrating that the challenged practice has a manifested relationship to the relevant job. Even if the defendant satisfies their aforementioned burden, the plaintiff can still prevail by establishing that there is an alternative employment practice available with less discriminatory impact that still satisfies the employer’s business need. As the federal case law on the matter suggests, the New York Yankees unique facial hair and grooming policy is likely in violation of Title VII. It is true that federal courts routinely dismiss race discrimination claims challenging grooming codes in the work place. However, the specific requirements of the Yankees current standing policy likely render it federally illegal, specifically due to its restrictions on facial hair as the policy pertains to a hypothetical, Black employee, diagnosed with PFB. One of the leading cases on employment facial hair policy is, University of Maryland at Baltimore v. Boyd, 612 A.2d 305 (Md. 1992). In Boyd, an employee succeeded on a claim that the University of Maryland at Baltimore’s facial hair policy was discriminatory as it related to African Americans. This specific policy was found to be discriminatory due to the fact that African American men are more likely to be affected by a skin disease known as PFB.[2] PFB can render the practice of shaving and facial grooming incredibly painful. Since this disease is specific to African American men, and is unquestionably immutable, the court found the policy to be in violation of federal law, as the policy had a disparate impact on a protected class of employees. In defense of its policy, the University argued that grooming standards of their employees are important to reflect in their view the correct public image. However, the court held that, “[t]his business necessity, however, is outweighed by the discriminatory impact of the policy. Other evidence introduced at the hearing showed that similar organizations with similar grooming policies allowed officers, diagnosed as suffering from PFB, to grow neatly trimmed beards in order to alleviate the condition.” Similarly, the plaintiff in, Richardson v. Quick Trip, 591 F.Supp.1151 (S.D. Iowa 1984), challenged an almost identical employment policy that restricted the growth of facial hair. The court in Richardson found, “[s]cientific studies indicate that between forty-five to eighty-three percent of all Black males who shave may be excluded from employment with the defendant because their PFB condition makes compliance with the no-beard policy insufferable. Less than one percent of white males are so hindered in obtaining employment with the defendant.” The defendant-employer argued that this policy was a business necessity, as any other facial hair policy would lead to an increase in customer dissatisfaction, however, the court held in favor of Richardson. Specifically, its holding established that the employer “can limit the perceived threat of customer dissatisfaction previously discussed by enforcing the no-beard policy against all employees except those who provide a medical certificate showing that they are afflicted by PFB.” As a result, the court held that the plaintiff’s discharge for violation of defendants "no-beard policy" constituted racial discrimination, as the policy had an unquestionably had a discriminatory disparate impact on African-American men, diagnosed with PFB. The employment policy in Boyd and Richardson would both likely be found to be analogous to the one in question. The Yankees have signed numerous African American males, with facial hair other than mustaches throughout the last nearly five decades, such as, former National League Most Valuable Player, Andrew McCutchen. All of those who ended up playing for the organization have had to shave their facial hair. McCutchen was outspoken against the policy. Years after he had to shave his trademark dreadlocks and facial hair, McCutchen stated, “I definitely do think it takes away from our individualism as players and as people. We express ourselves in different ways.”[3] Other MLB stars have even refused to sign with the Yankees due to this policy. In 2013, Pitching-Ace David Price stated he would never sign with the Yankees due to their facial hair and grooming standards.[4] Consequently, the Yankees facial hair and grooming policy resulted in the organization potentially missing out on signing the previous season’s American League Cy Young Award winner. Recently, in Bey v. City of New York, 999 F.3d 157 (2d Cir. 2021), New York City based African American male firefighters, who had been diagnosed with PFB, brought a discrimination claim against city and the Fire Department of New York (FDNY). They alleged that the department's rescission of an accommodation exempting plaintiffs from the department's “clean-shave standard” for personal grooming was in violation of Title VII. This employment standard was put in place to comply with Federal Occupational Health and Safety (OSHA) regulations and New York State laws ensuring that facial hair does not inhibit a fireman’s respirator from fitting properly when worn. The Second Circuit affirmed the grant of summary judgment in favor of the City of New York the FDNY on the Plaintiffs’ Title VII claim. This is due to the fact that the City raised the defense that they could not comply with the accommodation asked of by the plaintiffs due to the fact that the respiratory-protection standard is a business necessity. The court made clear however, when there are no federal safety regulations that require an employer to follow a specific employment practice, discriminatory disparate impact will be found. As the City did in Bey, if a similar case was brought against the Yankees, they would likely argue that facial hair policy was a business necessity. However, unlike firemen, there exists no OSHA standard or state law requiring baseball players to shave for their safety. As such the defense would likely be found as pretextual, and the Plaintiff-employee would prevail. Political and legal scholars have disagreed about the neutrality of dress and grooming policies. Many contend that they implicitly enforce culturally “white norms”. See Devon W. Carbado and Mitu Gulati, Acting White?: Rethinking Race in Post-Racial America (2013); Angela Onwauchi-Willig, Another Hair Piece Exploring New Strands of Analysis Under Title VII, 98 Geo. L.J. 1079 (2010). Currently, professional baseball players, such as Fernando Tatís Jr., are demonstrating employment autonomy and choice when dealing with their respective organizations. Major League Baseball is currently seeing an influx of new stars who are able to bring a new energy to the league through their expressionism and individualism. Despite this however, Steinbrenner’s policy has remained unchanged, and is continuously proving to be more antiquated with each passing season. Even the U.S. Air Force policy, which was Steinbrenner’s influence, has subsequently made several changes in the interim, allowing for men’s facial hair medical exemptions.[5] Is such a potentially legally discriminatory employment practice morally, ethically and or politically responsible for the second most valuable professional sports franchise in the world to continue?[6] [1] https://www.mlb.com/news/no-beard-in-the-bronx-brian-wilson-wont-shave-for-new-york-yankees/c-63902080 [2] https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6585396/ [3] https://www.youtube.com/watch?v=LN4V4eqYOZA&t=224s [4] https://www.wsj.com/articles/SB10001424127887324048904578320741510151474 [5] https://www.operationmilitarykids.org/air-force-grooming-standards/#men-regs [6] https://www.espn.com/soccer/barcelona-espbarcelona/story/4382031/barcelona-ranked-worlds-fourth-most-valuable-sports-team-forbes