Sports Law Roundup – 12/16/2016

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I used to write the sports technology roundup at TechGraphs, an internet website that died, and now I am writing the sports law roundup at ALDLAND, an internet website.

Here are the top sports-related legal stories from the past week:

  • NBA CBA: Like baseball, the NBA has a new collective-bargaining agreement. Full details are not yet public, but it appears there will be salary cap and luxury tax changes, as well as an increase– from thirteen to fourteen– in the number of guaranteed roster spots for each team. The league also has agreed to shorten the preseason and expand the calendar length of the regular season without increasing the number of regular season games. One aspect that will not change is the manner in which the players and owners divide basketball-related income. The players conceded roughly seven percent (approximately from 57% to 50%) during the last lockout in 2011.
  • NFL concussion settlement: Earlier this year, the NFL settled a class-action lawsuit brought by former players seeking compensation for ongoing problems related to head injuries suffered during their professional football careers by agreeing to provide a fund to compensate former players for the next sixty-five years. The U.S. Court of Appeals for the Third Circuit affirmed the settlement, but a small subset of the class members– approximately thirty of 22,000– were dissatisfied with the settlement, believing it was underinclusive because it did not provide relief for former players who develop CTE, the disease found in people who suffer from repeated brain trauma that, at this time, is not detectable while the player is alive. Seeking further review of the settlement, these plaintiffs petitioned the Supreme Court. On Monday, the Court declined to grant their petition, leaving in place the Third Circuit’s ruling. It is unclear whether these objecting plaintiffs have any further recourse, though they likely are watching the new lawsuit highlighted in this space last month that specifically addresses CTE.
  • Student-athlete classification: As discussed here last week, the United States Court of Appeals for the Seventh Circuit rejected claims by a group of former Penn student-athletes that they are employees entitled to minimum-wage compensation under the Fair Labor Standards Act. Now, those students plan to request en banc review, meaning that they will ask the full panel of Seventh Circuit judges to reconsider the decision. (Federal circuit courts typically hear cases in three-judge panels, even though more than three judges make up each of the federal circuit courts. Aside from an appeal to the Supreme Court, which may not even be accepted, the only way to reverse a circuit court ruling is to ask the full court to do so.) The plaintiffs contend that the amateur aspect of collegiate athletics the ruling noted is not pertinent to an FLSA analysis, and that the Seventh Circuit’s decision “conflicts with decisions in this and other circuits on employee status.”
  • Raiders stadium: In an apparent attempt to keep the Raiders from moving to Los Angeles or Las Vegas, the Alameda County Board of Supervisors voted to support the building of a new football stadium in Oakland that– unlike the new basketball arena being built for the NBA’s Warriors that will relocate them from Oakland to San Francisco–  would be funded, in significant part, with public money. The Board’s vote does not guarantee that the Raiders will stay in Oakland.
  • Rams fans: St. Louis-area holders of Rams personal seat licenses suing the team after its move to Los Angeles now have requested class-action status. The plaintiffs are seeking a variety of forms of relief, including reimbursement for tickets and concessions. A judge already has ruled that some of the plaintiffs who want the team to continue to honor the licenses by allowing the St. Louis fans to purchase season tickets at the team’s new home in L.A. are entitled to do so.
  • NFL broadcasting: The plaintiffs in an antitrust lawsuit targeting NFL Sunday Ticket, the product of the exclusive agreement between the NFL and DirecTV for the television broadcasting of out-of-market NFL games, won an apparently significant victory when Fox and CBS agreed to produce documents evidencing their own Sunday-Ticket-related agreements with the league and DirecTV in connection with a judge’s discovery order. The NFL contends that the plaintiffs have failed to allege an antitrust violation because the NFL can decide how to broadcast its games, and the Sunday Ticket package represents an addition to viewers’ existing options (i.e., the one or two games available each Sunday afternoon on Fox and CBS, plus the national Thursday/Sunday night/Monday night broadcasts) rather than a restriction.
  • Secondary ticket market: The President has signed the BOTS Act, a bill that expands the authority of the Federal Trade Commission to regulate the online secondary market for event tickets. The new law seeks to prohibit “ticket bots and other online tools that deliberately circumvent security protocols limiting or restricting online ticket purchases.” Here’s hoping this law will provide a more meaningful benefit to sports fans than the NFL’s practically meaningless agreement to end its league-wide imposition of a price floor on game tickets sold on the secondary market.
  • Formula One acquisition: Liberty Media, the company that owns the Atlanta Braves, will acquire auto-racing series Formula One for $4.4 billion. According to a reputable source, F1 cars are the fastest in the world among road-course racing cars.
  • MLB CBA: I wrote about the new CBA in this space after the league and players union reached their agreement on November 30. Now we have more information about the particularities of the agreement, and this analysis provides a helpful overview. We also learned that the Tampa Bay Rays were the only team to vote against approving the agreement. In a public statement, the Rays’ general managing partner made reference to an “opportunity [that] was missed” to “address the extraordinary and widening competitive gap that exists on-field between higher and lower revenue clubs.”

Sports court is in recess.

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3 thoughts on “Sports Law Roundup – 12/16/2016

  1. Pingback: Sports Law Roundup – 12/30/2016 | ALDLAND

  2. Pingback: Sports Law Roundup – 1/6/2017 | ALDLAND

  3. Pingback: Sports Law Roundup – 3/3/2017 | ALDLAND

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