1. Fraser v. Major League Soccer Study Guide
I. Standard Player Agreement
Like the other major leagues studied in this course, all players in the MLS sign a
Standard Player Agreement upon entering the league. Under the Standard Player
Agreement, the League had several powers not seen in the other leagues:
1. The League has the right to unilaterally renew the agreement for two
additional years (with a five percent annual increase) upon expiration of
the negotiated term; and
2. The player assigns to the League the exclusive right to license on a
group basis the player’s NIL rights for merchandising, while the player
receives only two percent of their base salary in return.1
While this assignment may seem similar to what player’s in the other major
leagues do, this creates a major drawback for MLS players: assigning the league their
NIL rights, as opposed to the players’ association, removes the largest form of funding to
protect the rights of the players. More importantly than the assignment, however, is the
language naming the League the employer, rather than the team as seen in the other major
leagues.
II. MLS Salary Cap
The MLS, like the NFL and NBA, is a salary-capped league, which stood at only
$3,100,0002 in the 2014 season (compared to $63,065,0003 in the NBA and
$133,000,0004 in the NFL). Similar to the NBA salary cap, there is a major salary cap
exception in the MLS: the Designated Player Rule, allowing for MLS teams to acquire
European talent such as David Beckham,5 Robbie Keane and Thierry Henry, and
keep/bring back great American talents like Landon Donovan, Clint Dempsey and
Jermaine Jones.
III. Single Entity
Due to multiple failed professional soccer leagues in the United States, like the
American Professional Soccer League, the American Soccer League and the North
1 From Antitrust to Labor Law, “Antitrust and Players Market”
2 “MLS Roster Rules and Regulations” (http://pressbox.mlssoccer.com/content/roster-rules-and-
regulations)
3 “Salary Cap for 2014-15 Jumps to $63 Million” (http://www.nba.com/2014/news/07/09/salary-
cap-increases/)
4 “Salary Cap Rise to $133 MillionShows How New CBA is Working,” Albert Breer
(http://www.nfl.com/news/story/0ap2000000331237/article/salary-cap-rise-to-133-million-
shows-how-new-cba-is-working)
5 “Beckham Signs ‘$250M’ LA Deal”
(http://edition.cnn.com/2007/SPORT/football/01/11/beckham/)

2. American Soccer League6, the MLS did intentionally limit the competition amongst the
teams for talent, but for pro-competitive reasons, as defined in the Sherman and Clayton
Acts, that would ensure the long-term success of the league. According to MLS
Commissioner Garber, the arrangement was so vital during the early years of the league,
particularly with the league coming so close to folding on several occasions.
Claiming that the MLS violated §§1-2 of the Sherman Act and §7 of the Clayton
Act, the court dismissed the claims on summary judgment because the MLS is a single
entity. On appeal, the First Circuit agreed with the district court of Massachusetts that the
MLS functions as a single entity and affirmed summary judgment. This ruling was as
fatal an outcome as could happen for the players of the MLS; quite simply, as a single
entity the MLS cannot possibly conspire with itself, making any future antitrust claims by
the players, outside of outright collusion, virtually impossible to be successful.
IV. Market Definition and Power
Another key ingredient to the granting of summary judgment was the market
definition provided by the players themselves. Here, according to the players, the market
was defined as the competition for Division 1 soccer players in the United States, which
was rejected by the jury.7 While understandable that the players’ attorneys attempted to
prove this market, unlike in the MLB, NHL, NBA and NFL, there are many suitable (and
even better) leagues competing with the MLS for these players too! Incredibly talented
American soccer players like Tim Howard, Brad Friedel, Clint Dempsey and others have
taken their talents abroad despite any proclaimed “monopolistic power” on behalf of the
MLS.
V. Effect of Single Entity Status on American Needle
In American Needle vs. National Football League, American Needle claimed the
NFL violated the Sherman Antitrust Act because of their exclusive licensing agreement
with Reebok. The district court and the Seventh Circuit granted summary judgment for
the NFL because it functioned as a single entity, similar to the MLS in Fraser, and
therefore could not have conspired to restrict trade and violated antitrust laws.8
On appeal before the Supreme Court, the NFL argued that the NFLP functioned
as a single entity because the NFLP collectively licensed all of the teams’ trademarks
together. However, the Supreme Court unanimously reversed summary judgment and, in
an interlocutory decision, declared the NFL does not function as a single entity because
each team is an independent business competing with each other.9 Furthermore, the Court
declared the NFL’s actions to fall within concerted activity to fill within Sherman
Antitrust Act consideration and remanded the case for a Rule of Reason analysis by the
district court.10
6 “U.S. Soccer History Timeline” (http://www.ussoccer.com/about/history/timeline)
7 From Antitrust to Labor Law, “Fraser v. Major League Soccer”
8 “NFL Lawyers Lose Again In American Needle; Case Likely Header For Trial,” Marc Edelman
9 American Needle v. NFL
10 Id.

3. VI. Questions For Review
1. Hypothetically, what if Fraser had succeeded in overturning summary
judgment in the First Circuit and the case had gone to trial -- discuss with your
group and determine which side would have won before the jury and why?
2. How does Fraser reconcile with American Needle? Discuss with your group
and determine if the NFLP was a single entity in light of Fraser or not.
Leagues have historically negotiated exclusive licensing agreements, but with
the American Needle ruling are they all going against antitrust laws? Are any
of the leagues safe from such Rule of Reason scrutiny?
3. In American Needle was the district court and Seventh Circuit ruling or the
Supreme Court ruling better reasoned and why? Please prepare a memo stating
whether or not your group would have granted or denied the NFL’s request for
summary judgment.
4. In light of the Supreme Court decision in American Needle, discuss the
arguments of both sides. Now, as the District Court of Northern Illinois,
prepare a memo explaining your ruling on remand.