Structure of MLS Is Ruled Legal
In a decision hailed as a significant victory by Major League Soccer and one that might have repercussions in other sports, a federal judge has ruled that MLS’ “single entity” structure is legal.
The ruling by Judge George A. O’Toole Jr. in Federal District Court in Boston dismissed two of five items in a class-action lawsuit filed three years ago by MLS players, who contended that the system under which the league owns all 12 teams and all player contracts violates federal antitrust laws.
The decision “essentially dismissed the heart of the plaintiffs’ lawsuit,” Mark Abbott, the league’s chief operating officer, said Thursday.
“For all intents and purposes, the case is over and MLS has won. We’re very pleased by that result.
“For the last three years, we’ve had an open invitation to our players to negotiate. Players have been advised [by others] to litigate, rather than pursue [negotiating]. We’ve always regretted that.
“That’s now come to a close. The litigation and the silliness is behind us.”
Attorney Jeffrey Kessler, who represents the eight MLS players who filed the suit and whose law firm also has represented NFL and NBA players in antitrust suits, told the Associated Press he will appeal O’Toole’s 23-page ruling.
“It’s up to them what they do next,” Abbott said. “But we’ve known for seven years [since the league’s formation] that we were right on the law, the judge confirmed that and undoubtedly it will be confirmed on appeal too.”
Asked how much defending the suit had cost MLS, Abbott said, “I don’t have the exact number, but it’s multimillions of dollars so far.
“I think what’s fair to say is, we’ve had less money to spend on everything that we want to do.”
The NFL Players Assn. reportedly had been funding the suit, but Abbott said he doubted many MLS players fully supported it.
“I think, frankly, that the vast majority of our players were not really engaged in this lawsuit,” he said. “It was a few players and obviously, some outside advisors who had great interest in it.
“We think the vast majority of the players want to sit down with the league and negotiate and help build the league, as opposed to doing destructive things to the sport of soccer.”
The three remaining issues in the lawsuit are seen as minor by MLS and have to do with licensing, transfer fees when players are traded, and the alleged monopoly power of MLS as the only Division 1 league sanctioned by U.S. Soccer.
Trial date for those elements was set for Sept. 18.
