A Legal Game-Changer: The Relevance of Antitrust in International Soccer

By: Nathalie Adams

In an era characterized by globalization, soccer, the world’s most popular sport, is gaining traction in the United States. Entrepreneurs and investors hope to seize the opportunity to profit from the growing interest in soccer. However, the large regulatory bodies governing soccer within the United States and internationally make it difficult to capitalize on the popularity of soccer, through hosting international games and tournaments. The governing bodies of FIFA and the US Soccer Federation wield immense power over every aspect of soccer as a game and business, leading to a complex web of legal battles and regulatory challenges that often go unnoticed by the casual observer. Relevant Sports v. US Soccer Federation characterizes the evolving landscape of soccer governance globally and the growing influence of antitrust principles, relating to soccer, in the United States.

            Hoping to bring international soccer to the United States, Relevant Sports, a company controlled by Miami Dolphins owner Stephen, is best known to soccer fans in the United States for creating the International Champions Cup, which included a series of soccer games between popular international teams hosted at venues across the United States from 2013 to 2019. Over the last several years Relevant Sports has been embroiled in a legal battle with the Fédération Internationale de Football Association (FIFA), an international organization that governs professional soccer globally,  and the United States Soccer Federation (USSF), the FIFA national association for the United States that must act on FIFA’s behalf within the United States. In August 2018, Relevant announced a plan to hold a regular-season LaLiga, the top soccer league in Spain, match between Barcelona and Girona in Miami, Florida. In October 2018, FIFA announced a new policy that “emphasized the sporting principle that official league matches must be played within the territory of the respective member association.” Directly following the announcement of the new policy, Barcelona withdrew from playing in the Florida match. Later, in March 2019, USSF denied Relevant’s application to host an official league match between two Ecuadorian teams, Barcelona Sporting Club and Guayaquil City FC, citing the FIFA policy, despite the Ecuadorian Football Federation approving the match.

As a result of FIFA and USSF barring Relevant from hosting international league matches in the United States, Relevant sued USSF, later adding FIFA as a co-defendant, claiming violation of the Sherman Antitrust Act and tortious interference. Section 1 of the Sherman Antitrust Act prohibits anti-competitive conduct that “stem[s] … from an agreement” or conspiracy among different actors to restrain trade among “States or with foreign nations.” Relevant alleged that USSF and FIFA worked together to prevent Relevant from hosting regular season matches on foreign soil. Despite an initial setback, in July 2021, when U.S. District Judge Valerie Caproni ruled in favor of USSF’s motion to dismiss the antitrust claim, Relevant refused to back down from its claims. In March 2023, the 2nd U.S. Circuit Court of Appeals reinstated the antitrust claim in a unanimous decision. In August 2023, the USSF asked the United States Supreme Court to review the case and the Supreme Court invited the Biden administration to file a brief stating its opinion on the issue. In March 2024, the Biden administration drafted a brief weighing in favor of Relevant Sports and the 2nd Circuit Court’s ruling. In answering the question of “whether allegations that an association adopted a binding anti-competitive rule governing its members’ separate businesses are sufficient to plead concerted action under Section 1 of the Sherman Act, 15 U.S.C. 1,” the government answered yes. The Biden administration’s recent briefing underscored Relevant’s assertion of monopolistic behavior, highlighting USSF’s active role in the adoption and enforcement of FIFA’s policy against hosting league matches from other countries. Far from being a passive bystander, the USSF played a pivotal role in disapproving specific matches and invoking the policy as justification for its decision. Furthermore, FIFA’s policy came directly after Relevant’s initial attempt to host a LaLiga match in the United States. In response to the Biden brief, in April 2024, FIFA and Relevant Sports reached a settlement agreement to “end their legal fight over the ban on big European football leagues and clubs playing official matches in the US.” While there is no guarantee that the resolution will result in FIFA allowing league games to take place in the United States, Relevant stated that FIFA is considering “changes to its existing rules about whether games can be played outside of a league’s home territory.”

For Relevant Sports, the resolution represents a crucial step forward in its quest to promote and expand the reach of international soccer in the United States. By leveraging legal avenues to challenge FIFA and the USSF’s alleged anticompetitive practices, Relevant has positioned itself as a trailblazer in the fight for fair competition and innovation within the sports industry. The agreement with FIFA signals a willingness on both sides to explore new possibilities for collaboration and growth, underscoring the potential for mutually beneficial partnerships in the ever-expanding global soccer market.

The implications of the settlement extend far beyond the confines of the courtroom, offering a glimpse into the future of international soccer governance and the commercial opportunities that lie ahead. With the door now open for teams to potentially play official league matches outside of their home territories, the stage is set for a new era of innovation and expansion in the world’s most popular sport. The prospect of top-tier European leagues staging games in the United States opens up exciting possibilities for fans and stakeholders alike, promising to elevate soccer on the global stage. While the settlement may lead to potential changes in FIFA policy, leagues may still face pushback from fans and other stakeholders wary of moving games outside of their home nations. Nevertheless, the allure of commercial opportunities in the lucrative American market, coupled with the impending arrival of the 2026 World Cup, is expected to outweigh any resistance to change.

In conclusion, the resolution of Relevant v. USSF represents a new chapter in the ongoing evolution of global soccer, marked by collaboration, innovation, and the relentless pursuit of progress. As the sport continues to transcend geographical boundaries and cultural divides, the settlement serves as a testament to the transformative power of legal advocacy in shaping the future of sports governance. With the hope of official league matches in the United States, soccer fans globally can look forward to a new era of excitement and possibility.

Leave a Reply

Your email address will not be published. Required fields are marked *