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Lawsuit from North American Soccer League against US Soccer Federation and MLS is thrown out

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A federal jury ruled in favor of the U.S. Soccer Federation and Major League Soccer on Monday, concluding an antitrust case initiated by a now-defunct league that contested the non-renewal of its second-tier status.
The ruling was delivered by Judge Hector Gonzalez in Brooklyn, subsequently leading to the dismissal of the lawsuit filed in 2017 by the North American Soccer League (NASL), which ceased operations shortly after the federation’s decision to not continue its status.

In its lawsuit, NASL accused the federation and MLS of colluding to maintain a monopoly over professional soccer in both the U.S. and Canada. Initially, the league sought $500 million in damages.
MLS firmly rejected the claims, asserting they lacked merit. Following the verdict, MLS issued a statement stating, “The jury’s verdict confirms that this case was nothing more than an attempt by NASL to deflect blame for its own failures. Since our inception in 1996, MLS has been dedicated to making the necessary investments to elevate the sport of soccer and provide an exceptional experience for players and fans.”

The federation, as the governing body overseeing soccer in the United States, deemed the jury’s ruling “an important victory for the broader sports landscape.”
Jeffrey Kessler, the attorney representing NASL, indicated in an email that the league was likely to appeal the verdict, citing significant errors that, according to him, hindered the jury from considering crucial evidence and claims essential to their case.

The U.S. Soccer Federation regulates leagues in three tiers, with MLS recognized as the top-tier Division 1 league. This division status is awarded based on various criteria, such as stadium seating capacity, the number of teams, and geographical locations.
Founded in 2009, NASL held second-tier status between 2011 and 2017. In its legal action, the league argued that the federation’s criteria for assigning league status created an anticompetitive and exclusionary environment, preventing it and similar leagues from effectively competing with MLS for Division 1 and with the United Soccer League for Division 2.
However, both the federation and MLS rejected these assertions, standing firm against the claims made by NASL.