Statutory Exemption: A Case Study

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Is the National Football League’s eligibility rules a condition of employment under the collective bargaining process and thus protected under the non-statutory exemption from antitrust laws (www.lexisnexis.com)? The National Football League’s eligibility rules are a condition of employment under the collective bargaining process and thus enjoy protection under the non-statutory exemption from antitrust laws (www.lexisnexis.com).

ARGUMENTS OF THE PLAINTIFFS: The plaintiff argues, that the NFL rules are arbitrary and impose an irrational restriction on the competitive market for players’ services (www.lexisnexis.com). Furthermore, the plaintiff maintains that NFL clubs are horizontal competitors of players and that they are prohibited from
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NFL, 543 F.2d 606 (8th Cir.1976), in holding that the eligibility rules do not enjoy protection under the non-statutory exemption from antitrust scrutiny. However, Mackey does not define the appropriate limits of the non-statutory exemption. Indeed, prior decisions have established that, as a result of the collective bargaining relationship between the NFL and NFLPA, players no longer negotiate directly with teams and NFL teams are allowed to engage in joint conduct with respect to the terms of players’ employment as a multi-employer bargaining unit. These principles hold that Clarett is not permitted to negotiate directly the terms of his employment with any given team, outside the purview of the NFLPA. Instead, Clarett’s employment is committed to the collective bargaining table under the control of the NFL and NFLPA. The NFLPA’s representative possesses the power and authority to seek the best deal for NFL players overall from the beginning. Clarett claims the eligibility rules fall outside the collective bargaining scheme. However, the eligibility rules are a distinct “condition for employment” and thus fall squarely within the collective bargaining process. Further, the eligibility rules have tangible effects on the wages and working conditions of NFL players. Clarett notes that the eligibility rules are an impermissible bargaining subject because they affect players outside the union. Simply because the rules may be a hardship on prospective, rather than current, players does not render the eligibility rules impermissible. In the context of collective bargaining, federal labor law allows NFL teams to act collectively as a multi-employer bargaining unit in structuring the rules of play and setting the criteria for player employment. The fact that the challenged rules govern eligibility for the NFL draft and exclude certain players from consideration, does not render the NFL’s adherence to its eligibility

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