The US Supreme Court has rejected the NFL’s claim to be immune from antitrust laws by a unanimous 9-0 vote.  The NFL has been arguing that they are a single business entity and thus do not fall under any antitrust laws.

The ruling came in American Needle Inc. v. NFL, a case that resulted from the league’s decision in 2000 to award an exclusive contract for hats and caps featuring NFL logos to Reebok International Ltd.

What does this mean for gamers?

Well, it mainly targets the Madden community.  With no competition in the football market, EA Sport’s Madden series has had a monopoly over the years with their exclusive contract.  This has led to year after year of minor developments and changes in the Madden formula.  Most of the supposed innovative new features are really too small to require a new version being churned out every year.  Even small problems that have plagued the game for years continue to be ignored.  In the end, the fans really just want the fully updated rosters, something that does not justify the $60 price tag.

Competition is a good thing and drives developers to make better games.  Even today, ESPN NFL 2K5 is widely considered one of the, if not the greatest football game ever.  There are online communities still devoted to keeping up to date rosters for this 5 year old game.  I, for one, am excited about the thought of playing a 2K Sports developed football game again.

For players and their unions, for coaches and for fans, the ruling is crucial. It’s cause for high-fives and fist bumps in every player union office. The court’s ruling preserves for the unions, for coaches and for fans the antitrust leverage that has produced enormous benefits for players in successful antitrust suits, has prevented the installation of coaches’ salary scales and has maintained competitive pricing for tickets and team paraphernalia. If the high court had ruled the other way and given the NFL what it wanted, the ruling would have applied to all four major professional team sports and the NCAA and would have changed the economics of the sports industry.

Free agency, bonuses and increasing salaries gradually would have disappeared. Assistant coaches and coordinators would have faced leaguewide salary scales instead of the current system in which teams bid for their services. Fans buying tickets, subscribing to television packages, and purchasing paraphernalia would have faced escalating prices. Team owners would have enjoyed windfall profits.

The court’s ruling eliminates all these possibilities and tells the sports industry that it is not immune from antitrust liabilities and, in all likelihood now, will never be immune.

Make no mistake, this is a monumental decision with far reaching consequences.  You can bet 2K Sports along with 505 games will be keeping a close eye on this case.  EA Sports must be very nervous, as the thought of their cash cow having competition will undoubtedly frighten them.

[via ESPN]