Jerald Jacobs Evaluates Pending Antitrust Case and Its Potential Impact on Associations

The case, U.S. Soccer Federation Inc. v. Relevent Sports LLC, involved an alleged conspiracy in which sports marketing agency Relevant Sports Group claimed the U.S. Soccer Federation colluded with FIFA, the governing body of the sport, to stop teams from playing competitive international matches in the U.S.

A U.S. District court judge dismissed the lawsuit in 2021 on the theory that the plaintiff must allege more, to include U.S. Soccer as a defendant, than that it belonged to FIFA and agreed to follow FIFA’s rules. However, a federal appeals court reversed the decision in March 2023 ruling that “membership and agreement to follow an association’s rules suffice to include a member as a defendant in antitrust allegations.” A petition was filed to the U.S. Supreme Court shortly after.

Jacobs, who also serves as general counsel to ASAE, said that should the Supreme Court take the case, any subsequent ruling could have broad ramifications for associations.

“Many associations have codes of rules or standards that are criteria for participating as members,” he said. “Arguably, merely joining an association and agreeing to follow its standards would essentially put a target on the back of every association member.”

The ASAE filed an amicus curiae brief to the Supreme Court in support of U.S. Soccer and argued that subjecting association members to antitrust lawsuits solely based on membership and compliance with association ethics codes, among other potential requirements, could harm associations and their members. Jerry Jacobs and Alvin Dunn assisted in preparing the brief.

“Members may think twice before joining an association,” Jacobs said. “Or they may be more likely to resign from an association if they fear that there’s a plaintiff out there who may bring an antitrust lawsuit case to their organization.”

Because there was previously a split among the circuit courts on the issue, Jacobs predicted that the Supreme Court could well agree to hear the case.

“Three circuit courts have ruled that joining an association and agreeing to follow its standards is not enough to be named a co-defendant in an antitrust lawsuit, and two circuits said that it is enough,” he said. “Splits in the circuit courts can be one reason why the Supreme Court is more likely to hear a case.”

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