Deck 10: Governance Issues in Professional Sports

Question 1

Which of the following limits the commissioner's power to govern a United States professional sport league?

A) The league's constitution
B) The league's bylaws
C) The league's owners' ability to fire the commissioner
D) All of the above
E) None of the above

Answer 1

D

Question 2

In judicial review of commissioners' decisions, courts typically show deference to:

A) The commissioner
B) Team owners
C) Players
D) Players associations

Answer 2

A

Question 3

Joe is the commissioner of a professional sport league in the United States. Tom is a quarterback of the league, who is accused of executing a cheating strategy in an attempt to win more games. Joe wants to suspend Tom to punish him for his actions. To determine the number of games to suspend Tom, Joe rolls a pair of dice. The number the dice land on is the number of games Tom will be suspended. Joe's actions:

A) Will be upheld by a court of law
B) Were in good faith
C) Were arbitrary
D) Were capricious

Answer 3

C

Question 4

A court is unlikely to overturn a commissioner's decision, as long as it:

A) Follows the league's constitution and bylaws
B) Follows the league and players association's collective bargaining agreement
C) Is not arbitrary or capricious
D) All of the above
E) None of the above

Question 5

Which of the following is not a purpose of U.S. antitrust law?

A) Prohibiting unlawful mergers interfering with a free market
B) Ensuring corporations generate the greatest amount of revenue
C) Providing consumers a wider range of products
D) Providing consumers products at lower prices

Question 6

Julia is an owner of a company that produces jerseys. The company is located in the state of California and produces all of its jerseys in California. However, some of its purchasers live in other states. Julia has funded the entire company herself and run into financial problems. Because of this, she has decided on her own to increase the price of jerseys by 100% over what they are currently selling for. Doing so:

A) Violates U.S. antitrust law
B) Does not violate U.S. antitrust law, because there is not an agreement between two or more parties
C) Does not violate U.S. antitrust law, because there is not price fixing
D) Does not violate antitrust law, because the activity doesn't affect interstate commerce

Question 7

The NCAA adopts a policy whereby schools can only sell the TV rights to 5 of their regular season football games per season. Schools play 12 games per season. This is an example of:

A) Price fixing
B) Limitation on output
C) Monopoly
D) Competitive balance

Question 8

Most professional individual sport governing bodies have rules that prohibit the use of equipment that would do which of the following?

A) Confer an unfair advantage
B) Present safety concerns
C) Minimally alter the nature of the sport
D) A and B

Question 9

The NCAA adopts a policy that only it can sell TV rights for all regular season NCAA games. Schools and conferences are not allowed to sell their TV rights. This is an example of:

A) Price fixing
B) Limitation on output
C) Monopoly
D) Competitive balance

Question 10

Section 1 of the Sherman Act prohibits concerted action that unreasonably restrains trade in a relevant market.

Question 11

Predatory or exclusionary conduct designed to enable an organization to acquire or maintain monopoly power in a relevant market is permitted under the free trade exception to Section 2 of the Sherman Act.

Question 12

The law of private associations enables a court to review the actions of a private association when it has allegedly violated its own rules or when it has acted in an arbitrary and capricious manner that violates procedural fairness.

Question 13

Most courts have ruled that the typical pro sport league is structured as a single entity rather than as an association of individually owned teams that compete with each other economically; therefore, such leagues may implement league-wide rules that restrain trade.

Question 14

Professional athletes who compete in individual sports are protected by the labor laws in the same manner as team sport athletes playing in pro sport leagues.

Question 15

When a professional tennis players association requires event producers to agree to ceilings on player compensation in order to get their event sanctioned, a court might find this to be illegal price-fixing under antitrust law.

Question 16

Courts usually grant substantial deference to sports governing bodies' decisions regarding regulation of acceptable equipment.

Question 17

What is the name of the power commissioners of professional sport leagues in the United States are given to govern with? Briefly describe and discuss this power. Then, discuss whether the breadth of this power is too little, appropriate or too broad, citing examples from the text and class.

Question 18

Courts apply one of two standards when determining whether the Sherman Antitrust Act has been violated: the per se rule and the Rule of Reason. Briefly discuss when each rule applies and how it operates.

Question 19

In Brady II, the Second Circuit upheld a suspension against Tom Brady for allegedly deflating footballs in the AFC Championship Game. In holding this way, the Second Circuit rationalized that NFL Commissioner, Roger Goodell, ". . . properly exercised his broad discretion under the collective bargaining agreement. . .". Below, discuss the breadth and sources from which the NFL commissioner obtains power to punish players. Discuss whether the scope of this power is smaller than, equal to, or greater than the commissioners of other U.S. professional sport leagues. Then, explain if and how the NFL commissioner's power to punish players should change, and why.