US district court judge Andrew Carter Jr. has dismissed an antitrust lawsuit filed against American football’s National Football League (NFL) relating to the league’s merchandising business
Nebraska-based Casey’s Distributing Inc. accused the NFL of operating a monopoly over merchandising through its long-term partnership with Fanatics, claiming that competition has been stifled and that the league’s control of the distribution of merchandise has driven up prices and reduced consumer choice.
Casey’s Distribution argued that it has been restricted in selling NFL-licensed products on its third-party marketplace by the NFL’s online distribution policy, which necessitates that associated retailers be licensed by the NFL Properties business.
Carter threw out the proposed class-action antitrust suit, stating that Casey’s Distributing did not have adequate evidence to suggest that the NFL was in breach of antitrust law, adding that such legislation is not made to suit individual businesses, but rather to protect the entire legislative process.
The ruling stated: “The problem with Plaintiffs’ [Casey’s Distribution] complaint is that it fails to adequately allege antitrust injury. Plaintiffs’ claim they were in fact injured by Defendant’s refusal to continue to sell trademarked NFL merchandise to Plaintiffs. But this is not an injury that the antitrust laws were designed to redress.
“Although the alleged scheme excludes Plaintiffs from purchasing from some licensees, the scheme does not, as alleged, harm competition. Antitrust law protects competition, not competitors.”
Fanatics was named as a co-defendant in the suit, with Casey’s alleging that its products were pulled from Walmart shelves as a result of the e-commerce giant's exclusive deal with the supermarket chain.
Casey’s Distribution may yet re-file the complaint with an amended argument by the end of July.
The NFL’s 10-year partnership with Fanatics began in 2020, and will run through the 2029-2030 campaign, with the e-commerce heavyweight granted exclusive consumer product licensing rights to manufacture and distribute all products designed by Nike, the US sportswear giant that is the NFL’s official apparel partner.
Since that deal was struck, Fanatics has heavily embedded itself into the NFL ecosystem.
Not only is the retailer now a partner of 28 of the 32 NFL franchises, but it is also the online and in-venue retail operator for 14 of those teams.
Furthermore, in 2023, Fanatics struck a partnership with the NFLPA players' union to replace Panini as the official trading card licensee.
