February 4 – The US Soccer Federation (USSF) and the MLS are celebrating a major win after a federal jury in New York found that the USSF did not violate anti-trust law in denying the North American Soccer League (NASL) Division II league status.
The NASL which operated between 2011 and 2017 and included perhaps the US’s best known club name globally – the New York Cosmos – argued that the USSF and MLS had illegally conspired against the NASL to ensure it wasn’t sanctioned as a Division II league.
The NASL initially asked for $500 million in damages, though Judge Hector Gonzalez later reduced the potential damages to $375 million.
The NASL is expected to appeal the ruling to the U.S. Court of Appeals for the Second Circuit.
Jeffrey Kessler of the law firm Winston & Strawn, acting for the NASL, told ESPN: “We have great respect for the jury process, but there were some fundamental legal errors made which prevented the jurors from receiving important evidence or being instructed on the correct legal standards and claims. Our client accordingly expects to appeal.”
The USSF and the MLS were both dismissive of the NASL and its complaint.
“We are pleased the jury has recognized the lack of merit in NASL’s claims and ruled in our favor, bringing this unfounded litigation to a close,” the USSF said in a statement.
“This decision validates U.S. Soccer’s commitment to fostering a broad and healthy ecosystem of professional soccer leagues across all divisions.
“This is also an important victory for the broader sports landscape in the U.S., especially the individuals, leagues, and other organizations committed to enabling healthy competition, player development, and enjoyment for fans.”
The MLS was more condemning in its own statement, saying: “The jury’s verdict confirms that this case was nothing more than an attempt by NASL to deflect blame for its own failures. Since our inception in 1996, MLS has been dedicated to making the necessary investments to elevate the sport of soccer and provide an exceptional experience for players and fans.”
The three-week trial saw testimony from former USSF president Sunil Gulati, MLS commissioner Don Garber, former Puerto Rico Islanders owner and NBA star Carmelo Anthony, and New York Cosmos owner Rocco Commisso.
Former president of sports marketing agency Traffic Sports USA, Aaron Davidson – who was indicted in the USA vs FIFA case in 2015 – also gave testimony. Davidson was one of the key driving forces behind the NASL with Traffic having been a major investor in the league.
The NASL operated under a Division II license issues by the USSF from 2o11 to 2017, but disbanded in 2018 when it refused to be downgraded to a tier 3 licensed league.
The NASL’s complaint centred around allegations that the USSF broke antitrust laws by creating arbitrary league licensing criteria manipulated to favour Major League Soccer (MLS).
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