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30 J. Legal Aspects Sport 1 (2020)

handle is hein.journals/jlas30 and id is 1 raw text is: 






Journal of LegalAspects of Sport, 2020, 30, 1 - 17
https://doi.org/10.18060/23892
© Steven A. Bank



FIFA, Forced Arbitration, and the U.S. Soccer Lawsuits


                               Steven A. Bank*

     American soccer has been besieged by lawsuits. In the last two years alone, the
     United States Soccer Federation (U.S. Soccer) has been hit with two antitrust
     lawsuits, two Equal Pay Act and Title VII gender discrimination lawsuits, and a
     trademark lawsuit, while two of its professional league members are engaged
     in their own trademark lawsuit. One threshold question that has received scant
     attention in the media is whether these disputes should be in federal court at all.
     Under the Statutes and Regulations of the Fdddration Internationale de Football
     Association (FIFA), soccer's global governing organization, all disputes are
     required to be arbitrated. Taking a dispute to an ordinary court of law is potentially
     subject to sanction, which could include suspension or even expulsion. Given this
     forced arbitration rule, this article considers several possible explanations for why
     there has been no push to arbitrate the disputes in most of the lawsuits: (1) The
     enforceability of FIFA's arbitration requirement has been called into question by
     recent rulings against forced arbitration clauses; (2) FIFA focuses the enforcement
     of its arbitration requirement on certain types of cases; (3) FIFA does not consider
     certain types of claims subject to arbitration; and (4) U.S. Soccer's bylaws do not
     impose the arbitration requirement in such a way as it would apply to these types of
     cases. Although none of these entirely resolve the matter in a satisfactory way, in
     the aggregate they may help to define the emerging limits to arbitration for sports
     governing bodies in the U.S. and elsewhere.

     Keywords: arbitration, antitrust, Equal Pay Act, Title VII, trademark, soccer, FIFA


                                Introduction
American soccer has been besieged by lawsuits in the last few years. In
September   of  2017, the  North  American Soccer League (NASL') filed an
antitrust lawsuit against  the United  States  Soccer Federation   (U.S. Soccer)
in federal  court,  alleging that  USSF   conspired  with  Major   League   Soccer
(MLS)   to erect and  arbitrarily apply a shifting set of divisional sanctioning
requirements   that prevented  NASL from challenging MLS for supremacy in
U.S.  soccer.' A little over a year later, in December   of 2018, the  U.S. Soccer


  Complaint, N. Am. Soccer League, LLCv. U.S. Soccer Fed'n, Inc., No. 1:17-cv-05495 (E.D.N.Y.
filed Sept. 19, 2017).
* Steven A. Bank, JD, is the Vice Dean for Curricular and Academic Affairs and the Paul Hast-
ings Professor of Business Law, UCLA School of Law; email: banklaw.ucla.edu. He wishes to
thank Jackson Sullivan for research assistance and Camille Comte for translation assistance.


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