• Loading stock data...
Wednesday, August 27, 2025
Front Office Sports Honors winners are here! View the 2025 winners

Judge Rules for NFL, Fanatics Against Small Apparel Seller

A judge dismissed a lawsuit that argued the NFL’s rules over merchandise re-sellers are anti-competitive and that the NFL “aids and abets” its partner Fanatics.

Kirby Lee-Imagn Images

A federal judge blessed the NFL’s policy of restricting where distributors can sell league-licensed merchandise, dismissing a lawsuit against the NFL and Fanatics.

Casey’s Distributing, a Nebraska-based company that re-sells official league apparel from licensees like Fanatics, sued the NFL and Fanatics in 2022 after the league blocked the company from selling NFL merchandise on third-party platforms like Amazon and Walmart.com. The NFL allows distributors like Casey’s to re-sell licensed products, but requires authorization at every step; the lawsuit alleged that the NFL dictating where distributors can sell league-licensed merchandise is an antitrust violation, and charged the league’s 32 teams with colluding.

Casey’s in its suit wrote that Fanatics, “has used its funding to buy up competing licensees of NFL products, slowly securing its dominance in the licensed sporting goods market, the crown jewel of which is NFL licensed products… The NFL aids and abets Fanatics because it has invested well over $400 million in Fanatics to become a large equity shareholder.”

But in a 12-page decision dismissing the lawsuit, Judge Andrew Carter of the Southern District of New York ruled this week that even though the NFL strategy that drives sales through its own platforms and Fanatics does injure smaller competitors like Casey’s, there is nothing legally wrong with that.

“While Plaintiffs have been harmed by the actions of the defendants, the law protects competition, not competitors,” Carter wrote. “The anticipated effect of the allegedly anticompetitive scheme would be higher prices for consumers. There is nothing in the complaint adequately alleging that consumers must pay higher prices as a result of the alleged scheme.”

It’s widely understood that antitrust law is designed to protect consumers, not competitors. The judge’s view is that Casey’s did not prove harm to consumers, only harm to itself. 

Because the judge ruled Casey’s does not have standing, he did not take up the question of whether the NFL’s merchandise ecosystem ran afoul of the landmark American Needle ruling, named after the hat-maker that sued the NFL to unwind an exclusive league apparel deal. In that 2009 decision, the Supreme Court ruled the NFL’s 32 teams were not presumed to be one entity with antitrust protections for leaguewide commercial contracts. Without that protection, the 32 teams could be seen as illegally colluding.

In a post last year asking whether the Casey’s lawsuit is “American Needle Redux?” sports attorney Christopher Deubert wrote, “The market for NFL licensed apparel is undoubtedly robust. It is perhaps not surprising then that the way in which the NFL controls or asserts its authority in such a market might attract antitrust scrutiny, particularly when it partners with Fanatics and Amazon, both behemoths in their own industries.”

The legal battle over whether the NFL is a cartel in how it operates in the licensed goods marketplace has still not been litigated—yet. Judge Carter ruled only on the standing question in his dismissal, though he did give an opening for Casey’s to refile its case by July 30. (Casey’s would have to prove the NFL and Fanatics are hurting consumers.) Casey’s could also appeal to the Second Circuit Court of Appeals.

Ironically, another judge in the Southern District of New York took the opposite approach from Judge Carter last year in a different sports case. In Fubo’s lawsuit against Disney, Warner Bros. Discovery, and Fox over the trio’s plans for a sports streaming service, the defendants argued, like the NFL and Fanatics, that there is no antitrust violation in harming competitors.

Judge Margaret Garnett turned their arguments down and granted a temporary injunction against Venu’s launch; the case settled shortly thereafter when Disney announced it would buy Fubo.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

NFL Roster Cut Deadline Passes After Backup QB Carousel

Several high-profile backups were traded or signed with new teams.

NFL Sunday Ticket Debuts Monthly Plan—but at a Steep Cost

Previously, fans had to purchase the service for the entire season.

Trey Hendrickson Ends Stalemate for $14 Million Bengals Raise

The defensive end will make $30 million this season.
Saquon Barkley

NFL Warns Prediction Markets Are Sports Betting With Less Oversight

League officials say the markets “mimic” sports betting.

Featured Today

‘You’re Going to Get Beat Up’: The Liberty’s All-Male Practice Squad

A select group suits up weekly to take on the defending champs.
August 24, 2025

The Honey Deuce Effect: How Tennis Perfected the Signature Cocktail

Sold every 1.5 seconds, they total more than $12 million in sales.
Dec 21, 2024; Austin, Texas, USA; Texas Longhorns quarterback Arch Manning (16) warms up as the Texas Longhorns prepare to play the Clemson Tigers in the first round of the College Football Playoffs at Darrell K Royal Texas Memorial Stadium.
August 23, 2025

Schools Are Hesitant to Allow PE Into Their Athletic Departments

Regardless of budget, schools don’t believe the risk is worth the reward.
Oct 2, 2024; Rosemont, IL, USA; Big Ten commissioner Tony Petitti speaks with the media during the 2024 Big Ten Women’s Basketball media day at Donald E. Stephens Convention Center.
August 22, 2025

‘Not Ready to Jump In’: Power 4 Commissioners Aren’t Sold on PE

Top leaders in college sports have yet to see a satisfactory proposal.
Oklahoma Sooners defensive back Woodi Washington (5) runs after a reception during the Armed Forces Bowl football game between the University of Oklahoma Sooners (OU) and the Navy Midshipmen at Amon G. Carter Stadium in Fort Worth, Texas, Friday, Dec. 27, 2024.

Oklahoma Selling Fans Tickets to Press Conferences

Press conference tickets for the Sooners’ season opener are already sold out.
August 10, 2025

Bears CEO: Arlington Heights Only Local Location for New Stadium

The Bears currently play in Soldier Field in downtown Chicago.
August 11, 2025

NBA Christmas Schedule Leans on LeBron, Steph While Betting on Flagg

The Lakers, Warriors, and Rockets are all in action.
Sponsored

Building A Pro League From Scratch

Front Office Sports and Gainbridge® spotlight what it takes to build a professional women’s soccer league.
August 8, 2025

Three Schools Sue Mountain West, Commish Over Withheld Funds

Boise State, Colorado State, and Utah State intensified the court battle.
Courtesy: Harlem Globetrotters
July 25, 2025

The Harlem Globetrotters Have Changed Hands Repeatedly, but Keep Making Money

The team is gearing up for its 100th season.
John Textor
July 11, 2025

UEFA Boots Crystal Palace from Europa League Over Ownership Issues

The South London club will appeal the ruling.
June 13, 2025

What Rolapp’s NFL Exit Means—and the Top Candidates to Replace Him

NFL media boss Brian Rolapp leaves; the league hunts for his replacement.