A Substantive Test for Sherman Act Plurality: Applications for Professional Sports Leagues

The US Supreme Court decision in Copperweld Corp. versus Independence Tube Corp. (1984) adopts a new approach to the plural business conduct issue. The Court ruled that a parent and its wholly owned subsidiary must be viewed as a single entity for Sherman Act purposes. The Court's decision comp...

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Bibliographic Details
Published in:The University of Chicago law review 1985-10, Vol.52 (4), p.999-1031
Main Author: Brock, James L.
Format: Article
Language:English
Subjects:
Antitrust
Antitrust laws
Comments
Competition
Contracts
Corporations
Economic competition
Fan clubs
Federal court decisions
Law
Licensed products
Litigation
Organizational structure
Professional sports
Sherman Antitrust Act 1890-US
Sports
Sports clubs
Substantive procedures
Supreme Court decisions
Television networks
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Summary:The US Supreme Court decision in Copperweld Corp. versus Independence Tube Corp. (1984) adopts a new approach to the plural business conduct issue. The Court ruled that a parent and its wholly owned subsidiary must be viewed as a single entity for Sherman Act purposes. The Court's decision compels a fresh attempt to categorize joint firm conduct as either unilateral or concerted. Copperweld is examined, and a new approach is proposed to the plurality issue based on the case's reasoning. A brief outline is presented of the structure of sports leagues. Current approaches to the plurality description of sports leagues are reviewed. It is found that these approaches do not survive Copperweld. The proposed plurality test is applied to professional sports leagues by examining 3 kinds of league decisions that might be challenged on antitrust grounds.
ISSN:0041-9494
1939-859X
DOI:10.2307/1599522