The United States Soccer Federation and Major League Soccer have emerged victorious in a high‑stakes appeal that cleared a $500 million claim brought by the North American Soccer League.
The dispute, which dates back nearly a decade, centered on allegations that the two governing bodies had conspired to deny the NASL recognition as a Division II league, a move the plaintiffs argued would have reshaped the competitive landscape of professional soccer in North America.
The Court’s Reasoning
In its recent ruling, the Second Circuit rejected the NASL’s arguments, concluding that the plaintiffs failed to demonstrate a relevant market competition or to prove any actual harm to consumers, key elements for an antitrust case.
Legal experts note that the decision underscores a high threshold for proving collusion, requiring clear evidence of a market structure that would be distorted by the defendants’ actions.
What’s Next for the NASL
While the judgment marks a decisive legal win for U.S. Soccer and MLS, it does not automatically close the matter; the NASL has signaled its intention to explore further appeals, though the prospects of success appear limited.
The outcome reinforces the current hierarchy in the sport, leaving the United States and Canada under the regulatory umbrella of the two dominant organizations.
The case involved a team of prominent law firms, including Latham & Watkins, Proskauer Rose, Winston & Strawn, and Pearson Warshaw, which provided representation for the prevailing parties.
The appellate panel was composed of judges Catherine O’Hagan Wolfe, Dennis Jacobs, and Raymond Lohier Jr., alongside District Judge Samir Deger‑Sen, with Senior Judge Christopher Yates and Judge Bradley Ruskin also participating, and Judges Jeffrey Kessler and Hector Gonzalez completing the roster.