Laumann v. National Hockey League Case Brief

District Court, S.D. New York2012Docket #65986725
907 F. Supp. 2d 465 2012 WL 6043225

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Case Brief Summary & Legal Analysis

4 min read

tl;dr: Consumers sued NHL and MLB, alleging their broadcasting agreements, creating exclusive territories and bundled out-of-market packages, violated antitrust laws. The court largely denied defendants’ motion to dismiss, finding plausible claims of anticompetitive harm.

Legal Significance: This case affirms that sports leagues’ broadcasting agreements, including territorial restrictions and out-of-market packaging, are subject to antitrust scrutiny under the rule of reason, and clarifies standing for indirect purchasers alleging conspiracy.

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Case Facts & Court Holding

Key Facts & Case Background

Plaintiffs, subscribers to television and/or internet services for live hockey and baseball games, brought a class action against the National Hockey League (NHL), Major League Baseball (MLB), their clubs, regional sports networks (RSNs), and multichannel video programming distributors (MVPDs) like Comcast and DirecTV. Plaintiffs alleged defendants engaged in anticompetitive practices by dividing live-game video presentation markets into exclusive territories, protected by blackouts. They further alleged collusion to sell ‘out-of-market’ packages exclusively through the Leagues at supra-competitive prices. These agreements allegedly involved individual clubs granting RSNs exclusive rights to broadcast games within designated territories, with MVPDs enforcing these blackouts. Out-of-market games were available only through bundled league-controlled packages (e.g., NHL Center Ice, MLB.tv), preventing consumers from purchasing individual games or games of specific non-local teams a la carte. Plaintiffs claimed these arrangements reduced output, diminished choice, suppressed price competition, and harmed consumers, constituting violations of Sections 1 and 2 of the Sherman Antitrust Act. Defendants moved to dismiss for failure to state a claim and lack of standing.

Court Holding & Legal Precedent

Issue: Did plaintiffs sufficiently allege that the defendants’ agreements regarding the telecasting of professional hockey and baseball games, which created exclusive territories and bundled out-of-market packages, constituted unreasonable restraints of trade and a conspiracy to monopolize in violation of Sections 1 and 2 of the Sherman Act, thereby surviving a motion to dismiss?

The court largely denied the defendants’ motion to dismiss. It held that Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim i

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IRAC Legal Analysis

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IRAC (Issue, Rule, Analysis, Conclusion) is the structure professors expect in exam answers. Each LSD.Law brief states the issue, the governing rule with citations, the court's application of that rule, and the conclusion - the same reasoning pattern you will use on exams and in practice.

Legal Issue

Did plaintiffs sufficiently allege that the defendants’ agreements regarding the telecasting of professional hockey and baseball games, which created exclusive territories and bundled out-of-market packages, constituted unreasonable restraints of trade and a conspiracy to monopolize in violation of Sections 1 and 2 of the Sherman Act, thereby surviving a motion to dismiss?

Conclusion

The case establishes that complex broadcasting arrangements in professional sports leagues are Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sin

Legal Rule

To establish a Sherman Act Section 1 violation, a plaintiff must allege: Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit es

Legal Analysis

The court first addressed antitrust standing. For television plaintiffs who purchased programming Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do

Flash-to-Full Case Opinions

Flash Summary

  • Antitrust suit challenges NHL/MLB broadcast deals dividing markets and bundling out-of-market
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum d

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