NFL, Fanatics collude to inflate price of licensed products, class action lawsuit claims

NFL, Fanatics class action lawsuit overview: 

• Who: Charles Franz filed a class action lawsuit against the National Football League, its 32 franchises, related entities and Fanatics LLC. 
• Why: Franz claims the NFL, its franchises and Fanatics colluded to increase the price of NFL-licensed merchandise and “dominate” the online market for such products.
• Where: The class action lawsuit was filed in New York federal court.

The National Football League (NFL) and its 32 teams colluded with sports merchandise retailer Fanatics to increase the price of NFL-licensed merchandise, a new class action lawsuit alleges. 

Plaintiff Charles Franz claims the NFL has a financial incentive to have Fanatics succeed, with the league purchasing a 3% stake in the company for $95 million in 2017. 

Franz argues the NFL, its affiliates and Fanatics, rather than compete amongst themselves and other retailers, for their “mutual benefit” ultimately conspired to “dominate” the market for online sales of NFL-licensed products. 

“The conspiracy as a whole, and each individual part, have allowed Defendants to charge supracompetitive prices for NFL Licensed Products and share the monopoly profits among themselves,” the Fanatics class action states. 

Franz wants to represent a nationwide class of all consumers who made an online purchase of NFL-licensed products from Fanatics, an NFL affiliate or team, or a current or former subsidiary of the defendants since Jan. 1, 2016, through when the effects of the allegedly unlawful conduct ceased.

NFL, Fanatics entered into anti competitive licensing agreements to ‘consolidate their operations,’ says class action

Franz claims the NFL and Fanatics boycotted competing third-party marketplaces that sold NFL merchandise and entered into “exclusive dealing arrangements” that denied other competitors access to manufacturers and suppliers. 

The NFL and Fanatics also entered into anti competitive licensing agreements to “consolidate their operations and end competition amongst themselves” and forbid other retailers from using NFL-related keywords to advertise or describe their products, the NFL class action alleges. 

“Because of this conspiracy, Plaintiff and the proposed class of direct online purchasers of NFL Licensed Products paid more than they otherwise would have for their purchases,” the Fanatics class action states.

Franz claims the NFL, its related entities and Fanatics are guilty of violating the Sherman Act and the Clayton Act. He is demanding a jury trial and requesting declaratory and injunctive relief along with an award of treble damages for himself and all class members. 

A similar class action lawsuit was filed against Fanatics and Major League Baseball and its 32 teams last year over claims they worked together to restrict competition for MLB-licensed products sold in third-party online marketplaces. 

Have you purchased an NFL-licensed product from Fanatics or the NFL? Let us know in the comments.

The plaintiff is represented by Warren T. Burns, Christopher J. Cormier, Spencer Cox, Claire Curwick, Matthew S. Tripolitsiotis and Cristina Delise of Burns Charest LLP. 

The NFL, Fanatics class action lawsuit is Franz, et al. v. National Football League, et al., Case No. 1:23-cv-11288, in the U.S. District Court for the Southern District of New York.

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