History and Trivia: The USFL Saga

Sportslaw History: The USFL Saga

Rival League Won Antitrust Case Against NFL in 1980s, but Received a $1.00 verdict

The success of the National Football League has enticed the formation of rival leagues during the 1970s and 1980s. The story of the United States Football League was not a successful one. And a legal decision kicked sand in the faces of the league officials.

The USFL began as a spring football league in March 1983. The new enterprize contracted with ABC and ESPN to broadcast games. Those contracts were relatively paltry and the league reportedly lost $200 million in three seasons. As a last-ditch attempt to keep it afloat, the USFL sought to move its schedule to the fall, to compete head-on with the NFL, as the Fall was a more natural time for football fans to view the sport.

This business decision was not very astute. The USFL could not get a network television contract and folded. Instead of quietly fading into the sunset, the league brought suit against the NFL on antitrust grounds. The suit claimed that the NFL acted anticompetitively to prevent any television network from signing with the fledgling league.

Antitrust trials frequently are heard by juries. Their awards are normally tripled under the Clayton Act, a 1914 law which is a sister statute to the Sherman Act, the 1890 law which is the granddaddy or antitrust law.

The case went to trial and the jury found that the NFL violated the antitrust laws. They found that the NFL, due to its economic night and de facto monopoly status, denied the USFL access to network television. Given the league's losses, USFL lawyers were hoping for a substantial verdict.

But the jury awarded $1.00 in damages (tripled to $3.00). In essence, they jury blamed the USFL management more than any actions by the NFL to drive it out of business.

It is unclear who actually received the $3.00 check and what was done with all that money.

Source: Weiler and Roberts "Sports and the Law" (1995 edition).