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Class Action Suit Against NFL and Fanatics Blocked for Now

Kit Yona, M.A.

Article by: Kit Yona, M.A.

Legal Writer

Reviewed by Joseph Fawbush, Esq. | Last updated on

The National Football League (NFL) is no stranger to the inside of a courtroom. While its 32 teams are separately owned and operated, they reliably move in lockstep together with policies ranging from collective bargaining agreements to merchandising. This has contributed to making the NFL the wealthiest sports league in the world by revenue. The vigorous and ferocious manner in which they protect and expand their interests has made the league the target of numerous antitrust suits as well.

The latest attempt to loosen the NFL's iron grip was stuffed at the goal line. On July 14, 2025, U.S. District Judge Andrew Carter Jr. dismissed without prejudice a class action lawsuit brought by Casey's Merchandising. Casey's had alleged that the NFL's tight control over the ability of distributors to sell licensed NFL merchandise through third parties like Amazon and Walmart resulted in higher prices for consumers.

Seeking injunctive, declaratory, and equitable relief, the suit also named Fanatics and each of the 32 teams as defendants. After Judge Carter dismissed the suit for lack of standing, Casey's will have to decide if they want to go for it with an amended complaint or punt instead.

You Come for the King, You Best Not Miss

Founded in 1920 as the American Professional Football Association, the NFL has evolved to become one of the most powerful sporting entities in the world. While it merged with the American Football League (AFL) in 1970, the NFL has a history of crushing its opposition both in and out of court.

The United States Football League (USFL) tried to offer a competing product in 1983, but it lasted only three years before folding. The league filed an antitrust suit against the NFL in 1986, claiming that the NFL had conspired to monopolize football and seeking $1.5 billion in damages.

In a famous decision, a six-person jury ruled that the NFL did indeed act as a monopoly, but also agreed with the NFL's claim that the USFL was responsible for their failure. The USFL was awarded $1 in damages, which was trebled to $3. They were later given millions in legal fees, but the league was long gone by then.

More recently, the NFL lost a class-action suit in 2024 filed by subscribers over its Sunday Ticket viewing plan. Claiming the viewing restrictions and inflated prices were clear antitrust violations, the plaintiffs won a massive award of $4.7 billion. However, the judge overturned the verdict, claiming the jury had used "guesswork or speculation" to determine those numbers and that, under Federal Rule 702, should not have heard the evidence presented by two "expert" witnesses.

Casey's was not the first company to legally challenge the NFL's stranglehold over merchandising. In the 2010 case American Needle, Inc. v. National Football League, the U.S. Supreme Court upheld rulings that although each of the 32 NFL teams was a separately owned entity, they couldn't be guilty of conspiring or colluding to restrict trade because they acted as a single entity with regard to antitrust laws.

With this precedent for exclusivity looming before them, Casey's was facing a legal challenge that seemed like a bit of a Hail Mary. Little did they know a flag would be thrown before they got to snap the ball.

Can't Spell Fanatic Without Fan

In their lawsuit, Casey's presented claims for alleged conspiracy in restraint of trade, alleged monopolization, alleged attempted monopolization, and alleged conspiracy to monopolize. They cited Fanatic's deals that gave them exclusive selling rights with Walmart and Amazon as antitrust violations under the Sherman Act and caused consumers to pay inflated prices due to the lack of competition.

In dismissing the case, Judge Carter admitted that Fanatic's business tactics gave the company a decided edge over other competitors like Casey's, but reasoned that the advantage wasn't illegal. As antitrust laws are intended to protect consumers, he ruled that Casey's hadn't adequately shown that the alleged schemes of the NFL and Fanatics had led to financial injury for football fans and buyers of team apparel.

Because the case was dismissed without prejudice, Casey's has the opportunity to amend the complaint to better fit the requirements of an antitrust suit. With a deadline of July 30, the attorneys had better use a hurry-up offense to file on time.

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