Friday, March 5, 2004

Pittsburgh Man Sues NFL: In a similar suit to one filed last month in Cincinnati, a Pittsburgh lawyer is representing a class in a $200 million lawsuit against the NFL. The lawyer, who just finished representing four Steelers season ticket holders in a suit claiming the team tricked them into taking poorer seats, claims that NFL antitrust violations have enabled teams to extract huge subsidies from governments to build new stadiums. I have not read the complaint (if anyone can find a copy, I would love to see it), but I assume that most of the $200 million is a claim for punitive damages, since compensatory damages would probably be about $10 per taxpayer.



The attorney states:



    The NFL is a monopoly. And as we lay out in the complaint, because of the structure and the way they operate, they are able to extract from communities these commercially unreasonable (stadium) leases.



I do not know a lot about antitrust law but I do know that cities have been saying "no" to professional sports teams for years and these cities have not ceased to exist. Currently, Minneapolis/St. Paul is making the Twins cough up more private funds for a new ballpark. Pac Bell Park in San Francisco and Gillette Stadium in New England (Patriots) were both built entirely by private funds. It seems the lawyer's beef (since it seems apparent the plaintiff is a puppet) is with the city that agreed to pay the money and not with the NFL. In any case, it certainly looks like this lawyer is becoming an expert in "sports law."



Update: As expected the NFL has responded to the suit, calling it baseless.
Arena Bondholders Challenge Bankruptcy: Bondholders in the Oregon Arena are planning to challenge the company's bankruptcy declaration, claiming that the company has no plans to reorganize. Instead, the investors claim, the arena's owner, Paul Allen, wants to buy back the investments at a reduced rate. Allen owns the arena as part of his ownership of the Portland TrailBlazers.



The next hearing in the case is set for March 22.
BALCO Lawyers Seek Probe of Media Leaks: From FindLaw
Colorado Tightens Recruiting: In response to the allegations of sex parties and strip clubs that has plagued the University of Colorado football team, the university has formulated new stringent recruiting guidelines, including a bar on visiting bars or strip clubs [this was allowed before?], an earlier curfew and a limit of one night per visit, down from two.



You can read a break-down of the guidelines here.
Baker Case to Be Heard Monday: An arbitrator will hear the case of former Celtic Vin Baker on Monday, after both sides filed briefs in the case today. Baker is challenging the NBA's statement, released Monday, that prevents Baker from signing with any other team before the resolution of his grievance against the Celtics. The arbitrator could take up to several days to issue his ruling in the case.



You can read more on the Baker case here.
Bloom Signs Endorsement Deals: Olympic skier and Colorado football player Jeremy Bloom has signed two endorsement deals that will fund his skiing career until the Olympics in 2006. Bloom, as I discussed here and here, Bloom is openly challenging the NCAA's rules that prevent an athlete from receiving endorsements for a different sport and participating as an amateur as another. Bloom wants to play college football, a sport in which he has never been paid, but continue skiing, a sport in which athletes depend on endorsements to compete.



The NCAA now has no choice but to deal with this issue. It is expected that the organization will rule Bloom ineligible, which may prompt Bloom to file a legal challenge. Unless the NCAA changes its bylaws, there is no question that Bloom is in violation.



The question that remains unanswered, though, is how was Bloom recruited to Colorado?

Thursday, March 4, 2004

Eisner Resigns as Chairman, Stays as CEO: Following a strong vote of no confidence, Michael Eisner has resigned as Chairman of the Board of Disney, though he will remain the company's Chief Executive. Though running unopposed for Chairman, 43% of shareholders withheld their votes, a stronger-than-expected opposition to the embattled executive. In addition, the naming of George Mitchell as the new Chairman has drawn criticism and claims that the Board is no more independent from Eisner that it was with him as its leader. Mitchell is a long-time Disney board member and supporter of Eisner.



The Orlando Sentinel has several articles about Eisner, including how he was idolized only 10 years ago and that his prime mistake was underestimating Roy Disney, who has led this charge.