Case Citation
Legal Case Name

National Basketball Ass'n v. SDC Basketball Club, Inc. Case Brief

Court of Appeals for the Ninth Circuit1987Docket #66225060
815 F.2d 562 55 U.S.L.W. 2626

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Case Brief Summary & Legal Analysis

General Brief
4 min read

tl;dr: The NBA sought a declaration that it could regulate the Clippers’ franchise relocation to Los Angeles without violating antitrust laws. The court reversed summary judgment for the Clippers, holding that such league rules are not per se illegal and must be evaluated under the fact-intensive rule of reason.

Legal Significance: This case clarifies that the precedent set in Raiders I did not create a per se rule against sports league franchise relocation restrictions. Such restraints are subject to a fact-specific rule of reason analysis, and their legality is not determined as a matter of law.

National Basketball Ass'n v. SDC Basketball Club, Inc. Law School Study Guide

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Case Facts & Court Holding

Key Facts & Case Background

The San Diego Clippers, a member franchise of the National Basketball Association (NBA), sought to relocate to Los Angeles. Citing the recent Ninth Circuit decision in Los Angeles Memorial Coliseum Comm’n v. National Football League (Raiders I), which found the NFL’s similar rule unlawful as applied, the Clippers announced their move and asserted that any NBA interference would violate antitrust laws. The NBA, wishing to evaluate the move and potentially impose a charge for the usurpation of a valuable market opportunity, was deterred by the threat of antitrust liability. The league had a rule, Article 9, similar to the one at issue in Raiders I, but also argued that other constitutional provisions and past practices implicitly gave it the right to regulate franchise movement. To resolve the impasse and avoid potential liability, the NBA filed a declaratory judgment action, seeking a ruling that its consideration of the move would not violate the Sherman Act. The district court, believing the case was controlled by Raiders I, granted summary judgment for the Clippers.

Court Holding & Legal Precedent

Issue: Does a professional sports league’s rule requiring league approval for a member franchise’s relocation constitute a per se violation of the Sherman Act, or must its legality be determined under a fact-intensive rule of reason analysis?

Reversed and remanded. The court held that genuine issues of material fact 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

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Legal Issue

Does a professional sports league’s rule requiring league approval for a member franchise’s relocation constitute a per se violation of the Sherman Act, or must its legality be determined under a fact-intensive rule of reason analysis?

Conclusion

This case solidifies the principle that sports league franchise relocation rules 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

Legal Rule

A professional sports league's rules restricting franchise relocation are not per se 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 o

Legal Analysis

The Ninth Circuit reversed the district court's grant of summary judgment, clarifying 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.

Flash-to-Full Case Opinions

Flash Summary

  • Reversed summary judgment, holding that a sports league’s franchise relocation rules
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 c

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