NFL Players Cannot Use NFL Trademark

NFL Players Cannot Use "NFL" As Part of Ad

Coors prevented from using "Official Beer of NFL Players," court rules

New York, August 18, 1999 -- Earlier this month, a trademark dispute between the National Football League and its Players Association reached a federal court in New York. It involved the use of the phrase "Official Beer of NFL Players" which appeared in an ad for Coors beer. Not surprisingly, judge Denise Cote found tan unauthorized use of "NFL" by both the Players Association and the beer company and ordered the ad stopped.

The granting of the injunction prevented the ad campaign from using the phrase. It also posed an embarrassing situation for both the company and the players association. In fact, one wonders why they took such a chance.

The temporary injunction is the latest development in a dispute between the NFL and Players Inc. -- the marketing arm of the NFL Players Association -- over whether the union and its sponsors have the right to use the league's name in advertising campaigns.

The issue is not academic; the NFL has sponsorship agreements with Coors's primary competitors, Anheuser-Busch and Miller Brewing. And it was reported in the Sports Business Journal that Miller Brewing threatened to withhold payments if the Coors promo wasn't stopped. Miller contacts to pay NFL Properties $9.5 million this year for advertising rights. Anheuser-Busch pays a rights fee of $2.175 million. The Coors deal was for $1.6 million.

Can Use "Players' Inc.," but Not "NFL"

If Coors used the term "Official Beer of Players Inc." there would be no problem. But of course, the NFL mark has a far greater marquis. And that premiere brand name is what Coors wanted for the money they paid.

An league official was quoted in the New York Times as saying that the "'official beer' designation is fraudulent because active players cannot endorse alcoholic beverages." It was also claimed that since Players Inc "does not represent all" of the NFL players (a number of quarterbacks have their own group) the statement was untrue. Both the Players' Association and Coors plan to appeal.

In the decision, judge Cote concluded: "It is abundantly clear that Coors would not have entered the contract without receiving the rights from Players Inc. to use the term NFL Players. A licensing agreement that only gave the right to say Players Inc. would simply not have been valuable." That point is central to the concept of a trademark. It is a brand designation and the more popular and highly reputable the brand is, the more value the mark has.

Despite the economic gains which players have received over the last quarter-century, the trademark to the sport they play in is not something they own. It is owned by the registered trademark holder, which is the NFL. While the players share merchandising monies with the teams as part of their collective bargaining agreement, they cannot simply get unrestricted use of the trademark, according to the court.

The Coors case is not the only dispute between the NFL and the players' association's marketing arm. According to the New York Post, the NFL is investigating a deal the players' union signed with Bally's Fitness Centers, designating it as "The Official Training Center for NFL Players." Another date in federal court may be near.