Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Bodybuilding organizations unlawfully ‘muscle out’ competition, complaint contends, (Mar 7, 2016)

By Greg Hammond, J.D.

The International Federation of Bodybuilding and Fitness (IFBB), IFBB Professional League, and National Physique Committee of the USA, Inc. (NPC) have allegedly conspired to monopolize the market for the regulation, promotion, sanctioning, and staging of amateur and professional bodybuilding competitions in the United States, according to a complaint filed in the federal district court in Alexandria, Virginia (Nspire Sports League, LLC v. IFBB Professional League, March 3, 2016).

The IFBB has allegedly dominated the amateur and professional bodybuilding sport since the 1940s, according to the complaint. Nspire Sports League, LLC—a relatively new bodybuilding league—contends that the defendants have monopolized, attempted to monopolize, and conspired to monopolize the business of competitive bodybuilding in the United States by locking out potential competitors—including Nspire—through exclusive dealing contracts with vendors, sponsors, contest judges, and competitors.

The defendants have purportedly furthered the monopoly in at least two ways, according to Nspire, including: (1) requiring both amateur and professional bodybuilding athletes to deal with the IFBB, IFBB Professional, and/or NPC exclusively, either through formal agreements or by threatening to cut ties with individuals who compete outside the defendants’ organization; and (2) requiring vendors and sponsors to deal with the IFBB, IFBB Professional, and/or NPC exclusively, either through formal agreements or by threatening to cut ties with businesses who deal with competing bodybuilding organizations.

Nspire claims that it has been injured by the defendants’ conduct, which may cause the potential imminent exclusion of Nspire from the relevant market if left unchecked. In particular, Nspire alleges that the IFBB’s written constitution provides that “any athlete or official who participates in a competition or event not approved or sanctioned by the IFBB, may be fined, suspended or expelled” from the organization. Moreover, the NPC allegedly hosted an event on the same day and in the same city where Nspire was scheduled to host an event and that NPC published a “warning notice” on its website, stating that athletes, judges, and officials would be subject to fines, suspension, or expulsion if they participated in an Nspire-organized competition. Nspire allegedly suffered a net loss of approximately $70,000 on that event.

The three-count complaint claims that the defendants engaged in monopolization, attempted monopolization, and conspiracy to monopolize the relevant market, in violation of the Sherman Act. Nspire seeks injunctive relief, treble damages, pre- and post-judgment interest, costs, and attorney fees.

Attorneys: Scott A. Cunning, II (Haynes and Boone, LLP) for Nspire Sports League, LLC.

Companies: Nspire Sports League, LLC; IFBB Professional League; International Federation of Bodybuilding and Fitness; National Physique Committee of the USA, Inc.

News: Antitrust VirginiaNews