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Leagues and Governing Bodies

PICKING UP THE PIECES FROM RULING ON MLS PLAYERS' SUIT

          After last week's decision by U.S. District Court Judge
     George O'Toole to throw out a major part of a lawsuit
     brought by eight MLS players challenging the league's
     single-entity structure (see THE DAILY, 4/20), the DALLAS
     MORNING NEWS' Richard Alm noted that the suit "will
     continue" at a September 18 trial where O'Toole will
     consider other arguments, including the allegation that MLS
     "conspired" with the USSF "to inhibit rival Division 1
     leagues."  But MLS COO Mark Abbott said, "For all intents
     and purposes, the case is over and ... MLS has won."  MLS
     players' attorney Jeffrey Kessler said that he "would
     appeal" O'Toole's decision.  Kessler: "This doesn't change
     their antitrust exposure" (DALLAS MORNING NEWS, 4/21).  In
     L.A., Grahame Jones called the decision a "significant
     victory" for MLS and "one that might have repercussions in
     other sports."  Abbott, on the cost of defending the
     lawsuit: "I don't have the exact number, but it's
     multimillions of dollars so far.  I think what's fair to say
     is, we've had less money to spend on everything that we want
     to do."  Jones noted that the NFLPA "reportedly had been
     funding" the lawsuit, but Abbott said that he "doubted"
     whether many MLS players "fully supported it."  Abbott: "I
     think, frankly, that the vast majority of our players were
     not really engaged in this lawsuit" (L.A. TIMES, 4/21). 
     Abbott: "It's hard for me to speculate on how the players
     might feel, although my hope would be that they'd feel
     positive about this. ... We think that they were ill-advised
     by some people to pursue a lawsuit as opposed to
     negotiation" (K.C. STAR, 4/23).
          WHERE DOES MLS GO FROM HERE? In DC, Eric Fisher wrote
     that MLS' "big legal victory ... represents the latest in a
     growing list of management wins."  But despite the court
     decision "on a start-up league," the story "on the field or
     on the balance sheet remains a far different story."  MLS
     and the WNBA, the "two most mature flag-bearers of single-
     entity, have yet to overcome their" startup costs and show a
     profit.  But Fordham Univ. School of Business law professor
     Mark Conrad said of the court decision: "This was a very
     reasoned opinion, and one that will give the WNBA, XFL,
     [WUSA] and other league[s] using or considering single-
     entity a big sigh of relief.  They're not necessarily
     jumping for joy, but relieved" (WASHINGTON TIMES, 4/23). In
     DC, Mark Asher wrote that if O'Toole's ruling is "upheld,"
     it "would place a higher burden on player plaintiffs in
     proving a violation of antitrust laws" (WASHINGTON POST,
     4/21).   ESPN.com's Jamie Trecker wrote O'Toole's "decision
     may prove to be a poisonous one for sport in general: With
     the decision, many other established leagues may move to
     this corporate model as a way to hold down costs."  Trecker
     added that MLB is "assuredly moving toward that model" and
     the WNBA and WUSA "will now be able to safely continue
     business as usual."  Trecker: "This is nice for the owners,
     but bad for the players."  Trecker also wrote that with
     O'Toole's decision, MLS management "can't hide behind the
     lawsuit as an excuse for not spending money on, well, just
     about anything.  In the coming months, will we see the
     promised stadia actually get built?" (ESPN.com, 4/23).  

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