Competition Act and MLS

[Huwiler's Odoreaters]

Hi folks.

I have a question for any lawyers (or non-lawyers) who know something about antitrust/competition law and/or labor law.

Eight years ago, in Fraser vs MLS LLC, the players' union contended that the "purported 'single entity' structure is merely a pretext to allow MLS owners to eliminate competition in the market for player services." In other words, they claimed that distinct entities (ownership groups) had formed a cartel with the sole purpose of surpressing player wages.

The ruling went against them, and upheld single entity.

We all know that every single absurd, convoluted player restriction exists to prevent teams from competing for the same player. US courts have said that's okay.

But would the Competition Act address single entity? MLS didn't have a Canadian team in the late nineties, when this case was argued. I don't have access to Canadian case law. Would the MLSPA have a case in Canadian courts?

[TheChoker]

Thing is, the MLS has plenty of competion..several USL leagues with teams north & south of the border and the CSL.

[Huwiler's Odoreaters]

Well, I'm talking specifically about Canadian law. I looked up the Competition Act, but I don't know the case law around anti-trust in Canada. I was hoping to get an answer from someone knowledgeable about Canadian law. My thinking on this (and, nota bene, I hate single entity) is that the players' union might be able to do an end run around the Fraser vs MLS decision by suing in Canada.

Anyone have any ideas?

[crazypete13]

Well, I'm talking specifically about Canadian law. I looked up the Competition Act, but I don't know the case law around anti-trust in Canada. I was hoping to get an answer from someone knowledgeable about Canadian law. My thinking on this (and, nota bene, I hate single entity) is that the players' union might be able to do an end run around the Fraser vs MLS decision by suing in Canada.

Anyone have any ideas?

Not sure if these help:

http://www.canadianlawsite.ca/antitrust.htm - Antitrust summary from Canadain law site

Depatment of Justice related pages:
http://lois.justice.gc.ca/en/C-34/
http://laws.justice.gc.ca/en/C-36.4/

Competition Tribunal Website:
http://www.ct-tc.gc.ca/index.asp

If you want to sue in Canada you'll need to get in touch with a firm that works on Canadian labour law and go from there.

[Huwiler's Odoreaters]

Thanks for your response. I don't have any connection to any party in potential litigation. My interest solely comes from being a soccer fan, union supporter, and socialist, and I detest the Fraser vs MLS decision for wrecking the leverage that the players' union needs. Canadian labo(u)r and anti-trust law seems much more favorable to the players' case.

And Toronto, of course, being practically the base of operations for the NDP, I wonder if TFC's players live in an NDP riding. Not trying to start a political discussion, but it's a damn shame that players for financially successful teams like yours don't get to see their work well compensated, instead being paid only according to the pay scale dictated by owners of the most miserly teams.

[crazypete13]

Thanks for your response. I don't have any connection to any party in potential litigation. My interest solely comes from being a soccer fan, union supporter, and socialist, and I detest the Fraser vs MLS decision for wrecking the leverage that the players' union needs. Canadian labo(u)r and anti-trust law seems much more favorable to the players' case.

And Toronto, of course, being practically the base of operations for the NDP, I wonder if TFC's players live in an NDP riding. Not trying to start a political discussion, but it's a damn shame that players for financially successful teams like yours don't get to see their work well compensated, instead being paid only according to the pay scale dictated by owners of the most miserly teams.

The stadium is in the Trinity Spadina riding - which is represented by the NDP both federally and provincially though I'm not sure how many players live within the riding. Though I agree with your sentiments about player salaries - I'm not sure a free(r) market system is wise at this point - I would be shocked if the the next CBA doesn't increase the saalry cap as well as the minimum salaries for players to address this somewhat.

As for the NDP - they were founded in western Canada out of the ashes of the CCF, and were led by Tommy Douglas who introduced Canadian healthcare and is Kiefer Sutherland's grandfather. Generally their base is in Manitoba, Saskatchewan and BC (they've formed several provincial goverments in those provinces, yet only one in Ontario) though they have had success in urban ridings as well as suburban ridings where unionized workers live. As such Toronto has had its fair share of NDP members of parliament and members of provincial parliament, and the current leader is from Toronto - though I wouldn't necesarily consider it the base of the party operations.

[billf]

MLSE knew what they were getting into when they agreed to join MLS. It's fine to complain about the player rules in the legaue, but they are a primary reason why MLS survived long enough to have a team in Toronto.

MLS would probably pull the plug on TFC if it saught to operate under different rules. That would be bad for the fan base, future MLS teams in Canada, and Canadian soccer as a whole. Most fans who have followed MLS since the beginning have had serious issues with the way it's been run. However, it's light years from where it was and still getting better.

The transcripts of Fraser have been on the internet. The union case was really poor and many of the witnesses came off poorly. It was more of a proxy fight between NFLPA and NFL than anything since the NFLPA fearned the NFL would organize as a SE.

I think everyone involved sort of came to the conclusion that an imperfect MLS is better than no league at all.

[Huwiler's Odoreaters]

If the battle in MLS is between old school owners who want to keep expenses as low as possible, and ambitious, experienced owners in strong markets who want to make money off a strong product, eventually Bob Kraft will sell.

I'd rather see a repeat of TFC's stunning success and high profile in Vancouver and Montreal than continue with a Kraft-run New England, where talk of playing anywhere but Foxboro is a smokescreen, a consistantly strong squad draws flies in an atmosphere-free tomb, and attempts to improve the league by improving monetary incentives (i.e., pay more money in salaries) will be vetoed.

Single entity will eventually end. If Canadian law hastens its death, the MLSPA should sue in Canada.

Funny that the apologists for the shady cartel who runs MLS will turn up anywhere to mumble their sad defense: it sucks but at least we have a league, like beaten puppies.