Awful Announcing
In 2017, the first year of the Trump administration, the now defunct National American Soccer League sued U.S. Soccer (USSF) over how it uses its power to assign leagues divisional ranks (MLS is Division 1 for example) to allegedly conspire to control the market for pro soccer. On Monday, a week before a new Trump regime takes office, NASL’s lawsuit, which added MLS as a defendant, is finally scheduled to go to trial after seven and a half years of litigation.
NASL, unhappy with its divisional assignment, went out of existence shortly after filing the lawsuit, so a jury ruling in its favor won’t suddenly create an MLS competitor. But at the planned three week trial in Brooklyn, N.Y. federal court, NASL is seeking $516 million in damages.
Plus, the trial holds the promise of trotting out top soccer powers like MLS commissioner Don Garber and team owners like Clark Hunt to be called to testify. NASL’s lead attorney is Jeffrey Kessler, a leading sports litigator. The thought of Kessler cross-examining Garber and Hunt could sell out soccer stadiums around the country given the sport’s infamous lack of transparency.
“There appears to be considerable evidence that U.S. Soccer and MLS were working arm-in-arm to promote and protect MLS,” sports attorney Chris Deubert said. “This makes sense in that U.S. Soccer had an interest in wanting MLS to succeed and MLS needed support. Nevertheless, it is problematic if there is a competitor or want-to-be competitor to MLS, like the NASL.”
NASL’s lawsuit, which is in part funded by the NASL’s Cosmos owner Rocco Commisso, argues MLS and USSF conspired to apply divisional standards, like stadiums capacities and teams’ geographic distribution, disproportionately. In his decision greenlighting the lawsuit, the federal judge noted USSF in 2017 waived 21 standards for second division and favored league USL, but denied two waiver requests for NASL.
“In 2015, NASL applied for a D1 sanction. It was denied in 2016, and U.S. Soccer refused to grant NASL any requested waivers,” Judge Hector Gonzales wrote in his June 2024 decision partially denying USSF’s motion to toss much of the case.. “In 2017, U.S. Soccer then denied NASL’s D2 application for the 2018 season, while granting a D2 sanction to USL. At this time, NASL only required two waivers from the D2 standards while USL required 21 waivers. NASL was barred from competing as a D2 league as a result. Because NASL team owners were unwilling to continue playing in NASL with at least D2 status, NASL suspended operations and cancelled its future seasons of play.”
Judge Gonzales notes in his decision there may be factual reasons for the discrepancy, but that means it is a subject for a jury to decide. Jury selection is set to begin Monday, with opening arguments pegged for Tuesday.
“The NASL has put forth a very large damages claim but that claim will certainly be rebutted by the defendants’ experts,” said Deubert, who noted the $516 million figure includes the trebling of damages awarded in antitrust cases. “Nevertheless, a damages award of tens of millions or hundreds of millions would obviously cause significant financial stress to either U.S. Soccer or MLS. I don’t though anticipate any award being an existential threat to either organization.”
With NASL shuttered and USL showing no desire to be a Division 1 league, the effect on men’s soccer of an adverse ruling is negligible, Deubert added.
“Where I think the ruling may be potentially applicable is to women’s soccer,” he continued. “U.S. Soccer has a strong, historical relationship with the NWSL. In my opinion, the NWSL is now being challenged by the USL Super League and I don’t think the leagues will exist as separate entities in ten years. U.S. Soccer gave the Super League Division I sanctioning – a decision that I’m sure was informed by the NASL case. If the NASL wins, and the Super League later feels like U.S. Soccer is tipping the sanctioning scales in favor of the NWSL, then the Super League could bring a claim similar to that of the NASL.”
The original NASL played between 1968 and 1984, hitting its heyday in the 1970s with an influx of global stars like Pele. The popularity quickly peaked, and the league died out. NASL was re-launched in 2011 and lasted until 2017, when it filed this lawsuit.
While NASL has a sports law heavy hitter in Kessler on its side, MLS and USSF employ top firms in Proskauer Rose and Latham & Watkins. Kessler, who represents several sports unions, frequently parries with Proskauer, which reps the corresponding leagues. Now, barring a last minute settlement, they square off in a courtroom over the business of soccer.
Daniel Kaplan has been covering the business of sports for more than two decades. A proud founding reporter of SportsBusiness Journal, he spent the last four years at The Athletic.
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“It is rewarding, man. And this has been, I could argue, our most rewarding season of all.”
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“You should ask can you come back for two more years and after next year, file for a medical redshirt so you can come back again.”
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