Part 6/8:
Legal History and the Role of Congress
Interestingly, this collusive arrangement has been challenged in the past. As far back as 1957, the U.S. Supreme Court recognized that this kind of structure was anti-competitive. Yet, despite the court rulings, the NFL continued to operate under the same practices. The key turning point was the intervention of Congress, which granted the league an antitrust exemption deeming football a nationally significant priority.
This exemption effectively shielded the NFL from traditional antitrust laws that could have prevented such collusion. As a result, the league can maintain its monopoly power, set high prices, and restrict consumer choice, all while earning an estimated $40 billion annually.