Final Part 1

Question 1

what is a traditional league?

Answer 1

when single owners invest and they’re under the umbrella of the league and each member of the team is liable for the actions of the unincorporated association

Question 2

what are the pros of a traditional league?

Answer 2

1) easy to raise capital
2) owners can put in as much money as they want
3) individual team owners fund teams, entrepreneurial in nature

Question 3

what are the cons of a traditional league?

Answer 3

1) subject to Sherman I (significant because a traditional league is always deemed to be a conspiracy, or joint ventured of the member eats)

Question 4

how does revenue work in a single-entity league?

Answer 4

all revenue expenses are shared equally (NFL shares 99.9% of the revenues because they do not share cost they are NOT a single entity league)

Question 5

who owns a single-entity team?

Answer 5

each owner owns an interest in the LLC (LLC owns all the teams)

Question 6

what are the pros of a single-entity league?

Answer 6

NOT subject to Sherman I and NOT a combination, conspiracy or joint venture

Question 7

what are the cons of a single-entity league?

Answer 7

1) no incentive for owners to invest money in team because it won’t benefit them
2) subject to Sherman II

Question 8

what is a hybrid league?

Answer 8

a single entity league in which each owner/investor is assigned a team, and a paid bonus based on the success of the team

Question 9

what is the formation process of a league?

Answer 9

1) first set up as a single-entity

2) once a CBA is established with a duly certified union, the league switches to a traditional league

Question 10

what is the logic behind a league starting as a single-entity and then a traditional league once there’s a CBA?

Answer 10

when negotiating and implementing a salary cap - you are restraining trade and if a duly certified union brings a suit against the single entity league, they are not subject to Sherman I

Question 11

what is a CBA?

Answer 11

a written contract between a duly certified union (player association) and an employer (owners)

Question 12

what does Sherman I need to restrain trade between two or more people?

Answer 12

an act

Question 13

what does Sherman II need to restrain trade?

Answer 13

power (not necessarily an act)

Question 14

what can you do with a negative injunction clause?

Answer 14

you can force the team to stay but without the clause you can only sue for damages

Question 15

what is the only sport with guaranteed contracts?

Answer 15

MLB

Question 16

what is does the national labor relations act cover?

Answer 16

cover 95% of all labor but does NOT cover public benefit corporations (like Nassau Coliseum)

Question 17

if 30% request a union vote what happens?

Answer 17

the National Labor Relations board requires a vote

Question 18

how do you become a duly organized union?

Answer 18

if you have 50% of the class plus one

Question 19

how do you decertify a union?

Answer 19

more than 30% request on election and more than 50% of those who are members of the union plus one vote to decertify the union

Question 20

what type organization are leagues?

Answer 20

self-regulated entities (commissioner w/ doctoral power)

Question 21

what are the pros of a league being a self-regulated entity?

Answer 21

1) gives commissioner power to arbitrate
2) gives commissioner power to regulate equipment
3) in an anti-trust action against the league, a decision is NEVER granted in favor of the plaintiff on a motion (must goto the jury)
4) league deemed a sole employee
5) unilateral regulation of equipment

Question 22

what are the cons of leagues being a self-regulated entity?

Answer 22

1) must negotiate on a league wide basis (even though the teams are all separate economic entities
2) must negotiate on behalf of the class

Question 23

what are the 3 types of states?

Answer 23

1) right to work states (work regardless of the union like Virginia)
2) close shop (have to be in a union to get a job which is now illegal)
3) union states (once you have been with a company more than 90 days you must join the union but today this changed, now you just have to pay union dues

Question 24

what happens when a CBA expires?

Answer 24

every term and condition within that CBA continues until a new one is negotiated, until the union is decertified or until you meet an impasse on all the issues

Question 25

what happens when you have an impasse on all the issues?

Answer 25

the league (not the union) may unilaterally change working conditions

Question 26

what is an impasse?

Answer 26

when all the issues are decided and both sides agree that all remaining issues cannot be resolved

Question 27

what is a LOCKOUT

Answer 27

when the OWNERS take action

Question 28

what is a STRIKE

Answer 28

when the PLAYERS take action

Question 29

do employees get paid during labor disputes?

Answer 29

no

Question 30

what is a strike over economic conditions?

Answer 30

employer can use permanent replacements

Question 31

what is a strike over unfair competitions?

Answer 31

employers can ONLY use temporary replacements

Question 32

what is the non-recourse rule?

Answer 32

when you can’t bring a law suit against the league if you’re a member of the league (you must goto the commissioner first)

Question 33

what are the 7 distinctions between arbitration and litigation?

Answer 33

1) arbitration is cheaper
2) “ “ quicker
3) “ “ private
4) punitive damages (in litigation you can’t get punitive damages in contract claims, only in tort claims)
5) discover and evidence is different (more stringent standards for litigation)
6) arbitration is not self-enforceable (have to goto court)
7) the appeal process is different (to overturn an arbitration you have to show it was arbitrary or capricious)

Question 34

what are the two types of arbitration?

Answer 34

1) grievance arbitration

2) salary arbitration

Question 35

2 types of grievance arbitration

Answer 35

by the commissioner or an independent arbitrator

Question 36

2 types of salary arbitration

Answer 36

1) final offer arbitration (team says he’s worth 5 million and he thinks he’s worth 10, the arbitrator can pick only one of the two)
2) compromise arbitration: arbitrator can award between 5-10 million in the above example