Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Governing body, U.S. Olympic Committee allegedly conspired to limit athlete sponsorships, (Jan 21, 2016)

By Linda O’Brien, J.D., LL.M.

The governing body for the sport of track and field in the United States has conspired with the U.S. Olympic Committee to limit certain individual sponsors’ advertising and logos that can be displayed on athletes’ competitive attire, according to a complaint filed in the federal district court in Eugene, Oregon (Gold Medal LLC v. USA Track & Field, January 20, 2016).

Gold Medal LLC manufactures and sells the compressed chewing gum Run Gum, which contains a proprietary mix of caffeine, taurine, and vitamin B. The gum provides a zero-calorie alternative to coffee or energy drinks for athletes. USA Track & Field (USATF) is a corporation that governs and supervises of the sport of track and field in the United States and operates the U.S. Olympic Trials.

The complaint states that Gold Medal markets its product by sponsoring a team of professional runners who promote Run Gum by competing in Run Gum apparel. The 2016 Olympics Trials Uniform Advertising and Logo regulations specify that the Olympics Trials are subject to the U.S. Olympic Committee (USOC) advertising regulations for athletes’ apparel and uniforms. These rules enumerate the size and quantity of permitted names and logos of apparel and equipment manufacturers that may appear on athletes’ competition attire.

While the USATF welcomes a variety of sponsors for itself, the USATF and USOC rules and regulations severely limit the type of individual sponsors that track and field athletes can display on their competitive attire. These restrictions greatly reduce sponsorship opportunities for the athletes and exclude potential sponsors, the complaint charges.

According to the lawsuit, the USTR and USOC have the power to exclude certain individual sponsors from the Olympic Trials through their authority to disqualify athletes that do not comply with their rules. Athlete sponsorship is central to Run Gum’s business model. If left unchecked, the restraint allegedly will prevent Run Gum from sponsoring individual athletes at the Olympic Trials and the exclusion will cause material economic losses for Gold Medal and Run Gum.

The plaintiff asserts claims for price fixing and unreasonable restraint of trade in violation of Section 1 of the Sherman Act. The action seeks declaratory and injunctive relief, treble damages, pre-judgment and post-judgment interest, costs of suit, attorney fees, and any other just and proper relief.

The case is No. 6:16-cv-00092-MC.

Attorneys: Timothy P. Landis (Timothy Landis, P.C.) and Michael D. Hausfeld (Hausfeld LLP) for Gold Medal LLC.

Companies: Gold Medal LLC; USA Track & Field; United States Olympic Committee

News: Antitrust OregonNews