Managers and the Legal Environment 7th Edition by David Madsen, Constance Bagley

Exercise 10

Locked-out professional basketball players Carmelo Anthony, Chauncey Billups, Kevin Durant, Leon Powe, and Kawhi Leonard file a class-action lawsuit against the National Basketball Association (NBA). The plaintiffs allege that by refusing to allow players to work, the NBA created an illegal group boycott, price-fixing agreement, and price restraint in violation of the Sherman Act. The only offers the owners made to settle the dispute would drastically reduce player salaries and effectively wipe out the competitive market for most NBA players. What result? Was filing this suit an effective tactic by the players? How would you respond if you were the lead negotiator for the owners? [Brown v. Pro Football, Inc., 518 U.S. 231 (1996); American Needle, Inc. v. National Football League, 130 S. Ct. 2201 (2010).]