Final Last Deck Flashcards
(87 cards)
pros of a traditional league
1) easy to raise capital
2) owners can put as much money as they want
cons of a traditional league
1) subject to Sherman 1 and 2 (always deemed a conspiracy or joint venture and therefore subject to section 1 where the burden of proof is not high)
why would you want to sue under Sherman 2 if they are already able to sue for Sherman 1 and it’s easy to prove?
in case you cannot show evidence of trading restraint, you can say they have too much market power
how do expenses work with single entity leagues?
expenses are shared equal and each owner owns interest in the LLC
pros of a single entity league
not subject to Sherman 1 (they are not a combination, conspiracy or joint venture)
cons of a single entity league?
no incentive for owners to invest money because it doesn’t benefit them and they’re still subject to Sherman 2
if you have 2 single entities doing an act together to restrain trade how would you sue them?
Sherman 1
who is a CBA between?
the employer (owner) and the union (player association)
what does the CBA establish?
the mandatory terms and working conditions between the two
what happens when a CBA expires?
all terms continue until a new one is in place
what is the only sport with guaranteed contracts?
MLB
what can you do with a negative injunction?
you can force a team to stay and without this you can only sue for damages
what happens when you have an impasse on all issues?
the league (not the union) may unilaterally change the working conditions
what happens during a lock out?
the OWNERS take action
what happens during a strike?
the PLAYERS take action
what happens during a strike over economic conditions?
the employer can use permanent replacements
what happens during a strike over unfair competition?
the employers can only use temporary replacements
what is the commissioner’s role?
absolute dictator when it comes to teams and team owners but NOT over players (players are governed by the CBA)
what is the non-recourse rule?
commissioner has full and exclusive authority on all matters of the league, so no lawsuits by an team or employee, and cannot sue the commissioner or the team in court
do courts say that they non-recourse rule is valid in Baseball
Yes, they knew it existed when they came into baseball as long as there’s due process in the arbitration process the court will not step in
what are the commissioner’s duties?
1) power to discipline
2) power to decide disputes among owners
3) power to represent league in CBA negotiations
does a commissioner need to sign a contract for it to be valid?
No but the signature is required in order for the player to play (LA RAMS v. CANNON)
what type of contracts does the NFL have?
separate annual contracts
what happens when an NFL player gets cut?
he still gets paid for the rest of the year, if he goes to another team that year he still collects both salaries