Yesterday, at 4 p.m. Pacific time, Judge Marsha Pechman was supposed to issue her ruling in City of Seattle v. Professional Basketball Club, LLC, regarding whether the City of Seattle could specifically enforce its lease agreement and require the Sonics basketball team to play in KeyArena through the 2009-10 season. After waiting more than an hour for Pechman's ruling, however, it was finally announced that the parties had privately settled the matter.

According to several published reports, the City of Seattle agreed to allow Clay Bennett's ownership group to get out of their lease, opening the door for the Sonics to immediately move to Bennett's hometown of Oklahoma City, OK. In exchange, Bennett will have to pay the city $45 million in immediate damages, as well as potentially an additional $30 million in future damages, if the Washington legislature authorizes at least $75 million in public funding to renovate KeyArena and the City of Seattle still does not obtain a new NBA franchise by 2013.

Bennett's ownership group will also have to leave the Sonics name and colors behind in Seattle -- something the group probably does not mind in the least.

An assessment of the settlement, below the fold.

Last week, the National Hockey League filed a counterclaim in the Southern District of New York, seeking permission to sanction Madison Square Garden, L.P. ("MSG") -- the parent company of the New York Rangers -- for violating the NHL Constitution by failing to follow league rules, including a rule against suing the league. According to an MSG spokesperson, the NHL's counterclaims are just "bullying tactics," intended to intimidate Rangers ownership into dropping its original lawsuit.

As some of you may remember, back on September 28, 2007, MSG -- through its attorneys, Jones Day -- filed a 35-page antitrust complaint, arguing that the NHL had acted anti-competitively by voting to implement a New Media Policy that required all teams to turn over control of their independent websites to the NHL. MSG contended that it uses the Rangers website "as a competitive tool to generate and maintain fan interest in the Rangers in competition with other NHL teams," and that by seeking to control competition in Internet and new media markets, "the NHL has become an illegal cartel."

Ironically, MSG has not sued the NBA, which for years has enforced a nearly identical policy. (Note: MSG also owns the NBA's New York Knickerbockers.)

MSG's antitrust lawsuit has already led to its share of rulings in favor of the NHL. First, on November 2, 2007, Judge Loretta Preska (S.D.N.Y.; the same judge from Cleary Gottlieb fame) rejected the Rangers' motion for a preliminary injunction against the NHL, finding that under antitrust law's Rule of Reason, "it is far from obvious that [the New Media Policy] has no redeeming value." On March 19, the Second Circuit affirmed her ruling. The Rangers have now proceeded toward a full trial on the merits.

This is not the first time that a professional sports club has sued a league under antitrust law for purportedly encroaching on club-based property rights. In the mid-1990s, the Dallas Cowboys, New York Yankees, and Chicago Bulls each brought separate antitrust lawsuits against their respective leagues for attempting to reallocate property rights. The Cowboys and Yankees claims involved the use of club trademarks for sponsorship purposes. Meanwhile, the Bulls' suit involved an attempt to limit the club's television broadcast rights. Ultimately all three cases settled out of court, although the Seventh Circuit first issued several rulings in the Bulls case. In none of these cases did the league then seek to punish the plaintiff club.

Here, the NHL is seeking the court's permission to vote on at least the following three sanctions: (1) fining Rangers ownership; (2) requiring MSG to sell the Rangers; and (3) terminating altogether the Rangers franchise. Although these remedies are purportedly each allowed by the NHL Constitution with a three-fourths vote of approval, actually enforcing the two latter sanctions would cross into nearly uncharted territory.

So, what are the NHL's chances of being allowed to impose these sanctions?

Find out, after the jump.

Two weeks after the start of Monday Morning Quarterback, and the Chicago White Sox collapse continues much as I had predicted (41-34 overall; 4-8 in last 12 games). The Twins are now within 1 1/2 games of first place in the AL Central (40-36). The Tigers are quietly inching back (36-39, 5 games out). And even the Cleveland Indians are within reach (35-41, 6 1/2 games out). I'm still sticking with Detroit to win the division.

Last week, most commenters strongly opposed my suggestion for the Yankees to move Joba back into the bullpen. On Thursday, Joba made a strong case for why our readers might be right, pitching 5 2/3 innings of one-run ball against the San Diego Padres. Even more impressive for the Yankees, Joba's outing was followed by 2 1/3 innings of one-hit ball from relief pitchers Jose Veras and Kyle Farnsworth, who then turned the game over to Mariano Rivera in the 9th.

With that said, here are the arguments presented in this week's brief:

1. K-Rod will set baseball's all-time single-season save record in September. Currently, Bobby Thigpen holds baseball's record for saves in a season with 57. K-Rod, who already has 30 in less then than half of 2008, will not only break this record, but he will break it with time to spare. It's not about K-Rod being baseball's best reliever (that isn't the argument, although he is probably no. 2). It has to do with the Angels having a great starting rotation that keeps the team in almost every ballgame. Plus, with K-Rod likely to leave the Angels as a free agent after this season, don't expect manager Mike Scioscia to feel the need to save his arm for the long-term.

2. Tiger Woods's injury is actually a good thing for the PGA Tour. Although many sports analysts think Tiger missing the rest of the PGA season is the worst thing that could happen to golf, Tiger's absence is only going to build interest in the world's best golfer, leading up to his 2009 return. Look for Tiger to return in 2009 with a ratings bang, as even many non-golf fans tune in to see if Tiger regain his old form.

3. Laurence Maroney will rush for more than 1200 yards this season. I know Maroney has never rushed for many than 835 yards in a season; however, the shoulder and groin injuries that plagued him for the first half of last season finally seem healed. As opposing defenses focus more on stopping the Patriots passing game, look for Bill Belichick to counter with more running plays, making this the year that Maroney really breaks out. A strong season from him will be the Patriots key to making another Super Bowl run.

So that's my opening brief. File your respondent's brief, or amicus brief, in the comments.

Baseball is America's national pastime. So is litigation. In recent years, the two have converged in the most obnoxious way, with fans suing each other for ownership of home run balls.

On Monday, the Florida Marlins received a subpoena for video footage from Justin Kimball, a 25-year-old fan who attended the team's June 9th game. According to Justin, on that day he caught Ken Griffey Jr.'s monumental 600th career home run in his wool cap, but the ball was ripped away from him by a fan identified only as "Joe." Joe, however, contends that he caught the ball in his glove.

Last Wednesday, Justin filed a motion in Miami-Dade court, seeking a temporary restraining order prohibiting Joe from selling the disputed baseball. Although Justin's motion was denied, he plans to continue litigating.

This is not the first time that grown men have fought over a baseball. In December 2002, a California judge in Popov v. Hayashi (PDF) ordered two men, each of whom claimed to own Barry Bonds's historic 73rd home run ball, to equally split the proceeds. In that case, Alex Popov, owner of a Berkeley, CA health food restaurant, brought suit against Patrick Hayashi, a software engineer from Sacramento. Popov alleged that he owned Bonds's baseball because he was the first to get his glove on the ball, and that Hayashi tore the ball from his glove during the ensuing melee. Hayashi argued that he was the first to have actual possession.

Read more about the law of history-making baseballs, after the jump.

[Ed. note: Welcome back for week two of Monday Morning Quarterback. As explained in the inaugural post, each week law professor Marc Edelman will make three bold claims related to sports. You can agree, disagree, or discuss, in the comments. Think of it as a weekly open thread about specified sports subjects. (Yes, there was some grumbling about sufficient legal nexus for this feature in the comments; but there's always grumbling in the comments, and pageviews don't lie. So, onward.)]

Last week, most commenters agreed that Paul Pierce is one of the NBA's toughest players and that Kobe Bryant should not have won the league's MVP. However, you disagreed that the Tigers would eventually overtake the White Sox in the AL Central.

Since then, the Tigers have gone on a six-game winning streak, including a three game sweep of the White Sox. My gut is the Tigers will keep going.

Here are this week's claims:

1. The Yankees Should Put Joba Back In The 'Pen. Forget the fact that Joba Chamberlain only allowed one run in six innings on Friday night; his value is greatest to the Yankees in the bullpen. Before the Yankees moved Joba into the starting rotation, they should have thought about their 1996 recipe for success. That season, the Yankees won the World Series despite mediocre starting pitching because Mariano Rivera and John Wetteland dominated games from innings seven through nine. In the 'pen, Joba is just as dominant as a young Mariano Rivera. However, as a starter, he is a question mark at best.

2. Even Without His Two Arrests, The Bears Should Have Cut Cedric Benson. Even if Cedric Benson was not arrested twice this off-season, Benson had no business competing for the Bears starting running back job. Last season, Benson averaged a putrid 3.4 yards per carry on 196 rushing attempts. Amongst starting running backs, only Warrick Dunn (3.2 yards/carry) was worse. With Benson finally gone from the team, the Bears could sign a proven free agent back like Travis Henry (4.1 yards/carry in 2007). Of course, Bill Swerski may still prefer the team hand the ball off to Mini-Ditka.

3. Phil Jackson Has Been No Zen Master In The NBA Finals. Although the Lakers took 2-of-3 games in Los Angeles, they blew a 24-point lead in Game 4 and another 19 point lead in Game 5. Doc Rivers made all kinds of adjustments to get the Celtics back into both games. However, Phil Jackson rarely had any answers. Jackson was lucky that the Lakers survived elimination last night. If the Lakers play as inconsistently in Boston, his team is toast.

So that's my opening brief. File your respondent's brief, or amicus brief, in the comments.

Last week, the Major Indoor Soccer League ("MISL") (disclosure: my employer for one summer) announced it was ceasing operations after seven seasons as a single entity. This comes as bad news for Game Plan LLC, the investment banking and consulting services group that helped MISL to restructure into a single-entity league during the summer of 2001, as well as for any startup league that is considering adopting the single-entity structure.

With last week's at least temporary collapse of the MISL, just about every single-entity sports league in America is now gone. Although the "single entity" concept was intended to turn niche-based professional sports leagues into profitable businesses, that result clearly has not happened.

The single-entity structure was first envisioned to allow sports leagues to act unilaterally without risking liability under Section 1 of the Sherman Act. Because the single-entity structure consists of a single limited liability company and investors that purchase shares in this company, the structure's purported advantage is that investors could not be found guilty of illegally colluding with one another by unilaterally setting league ticket prices, player salaries, or league entry rules. This is because the clubs are wholly-owned subsidiaries of the league. As a matter of law, a wholly-owned subsidiary cannot collude with itself.

Beyond this purported legal advantage, the single-entity league is also believed by some to have certain business advantages.

Read more, after the jump.

Lawyers love to debate. So we're kicking off a new feature here at Above the Law called Monday Morning Quarterback. Each Monday, I will make three bold claims related to sports. You can agree, disagree, or discuss, in the comments. Think of it as a weekly open thread about specified sports subjects.

This week's claims:

1. Paul Pierce Is One Of The Toughest Players In The NBA. Some say that Paul Pierce was faking his sprained knee in Game 1 of the NBA finals, but the truth is he is amongst the toughest players in the NBA. In the 2000-01 season, Pierce played in all 82 regular-season games, despite that September having been stabbed 11 times in his face, neck and back. If Pierce can play with stab wounds, why doubt that he can play on a bad knee?

2. Kobe = The Worst NBA MVP Choice Ever. Chris Paul (Hornets) and Lebron James (Cavs) both accomplished more with less this season than did Kobe. Despite playing alongside stars Pau Gasol and Lamar Odom, Bryant made less than 46% of his shots from the field. Meanwhile Paul and James, without the same kind of supporting cast, both shot over 48%. Paul and James are more efficient players than Kobe, and make better use of their teammates. Either would have been a more deserving choice for MVP.

3. The Chicago White Sox Will Not Win the AL Central. Of all the baseball teams currently in first place, the Chicago White Sox (36-26, 5 1/2 game lead in AL Central) are the most likely to collapse. Their manager Ozzie Guillen is a loose cannon, and their ace starter Jose Contreras has yet to perform consistently for an entire season. Although the Detroit Tigers (26-36, 4th in AL Central) are currently 10 games out of first place, starting pitcher Dontrelle Willis just returned from the DL, and reliever Joel Zumaya should be back next week. Both players' return will help the Tigers to surge back atop the AL Central.

So that's my opening brief. File your respondent's brief, or amicus brief, in the comments.

Have you been searching for more-affordable fantasy sports games? If so, thanks to the Supreme Court's hands-off approach to the conflict between player publicity rights and First Amendment rights, unlicensed parties may now have a better chance to legally enter the fantasy sports gaming market.

Since the creation of fantasy sports games in the early 1980s, one of the main barriers to entry has involved purchasing the right to use players' names and statistics. On Tuesday, however, the Supreme Court denied Major League Baseball's petition for certiorari in C.B.C. Distribution and Marketing Inc. v. Major League Baseball Advanced Media, L.P. (previously blogged about here). As a result of the cert denial, fantasy sports websites are now more likely allowed to use baseball players' names and statistics without obtaining any type of license.

Discussion resumes below the fold.

I previously wrote (here and here) about Oscar Pistorius, the Olympic hopeful who was ruled ineligible to compete in the Beijing Games by the International Association of Athletics Federations ("IAAF") because he uses Cheetah Flex-Foot prosthetic legs. With help from Dewey & LeBoeuf (disclosure: my previous employer) as his pro bono counsel, Pistorius recently challenged the IAAF's ruling in the Court of Arbitration for Sport.

On Friday, a three-person arbitration panel ruled in Pistorius's favor, finding that Pistorius's prosthetics do not provide him with "an overall net advantage" in violation of IAAF Rule 144.2(e). This opens the door for Pistorius to compete in South Africa's Olympic trials using his prosthetics. The panel reserved the right to change its ruling if new scientific evidence emerges.

With this matter resolved for now, let's take a look at the big winners and losers from the litigation:

Big Winners

Oscar Pistorius: Finally eligible for South Africa's Olympic trials, the Blade Runner is a step closer to competing against the world's finest. In addition, he is also a step closer to earning the kind of endorsement dollars that would make even Dan & Dave envious.

Ossur HF Company: The Iceland-headquartered supplier of the Cheetah Flex-Foot prosthetics is gaining all kinds of free publicity. Most of us have now heard of the Cheetah Flex-Foot. Can anybody name a competitor prosthetic? I didn't think so.

Dewey & LeBoeuf: Forget the goodwill that comes with pro bono representation. By winning this case, Dewey & LeBoeuf has expanded its sports-law footprint across the Atlantic Ocean, as well as opened the door to secure new business in international sports arbitration.

Debevoise & Plimpton: Real kudos goes to the Court of Arbitration for Sport for their gutsy and articulate 18-page decision that does not pull its punches with the IAAF. David W. Rivkin, a partner in the New York and London offices of Debevoise & Plimpton, was one of the three named arbitrators in this dispute. His work could only look good for the firm.

Read the rest, after the jump.

Last summer, a senior associate pulled me aside to tell a joke. The joke involved a young man who, while alive, was mistakenly whisked away to hell. Upon arriving in hell, the man found it warm and sunny. So, he spent the rest of his life trying to get back.

Many years later, the man died. As expected, he was sent back to hell -- this time for real. Upon his return, however, the man found that hell had become scorching hot. The man, now old, was shocked by this change. The devil's explanation: "Before, you had only seen hell's summer associate program."

Summer associates, beware: your law firm careers might not be filled with the same bread and circus as you will enjoy this summer. However, the future also does not have to be hellish. This summer is a great time to seek out work you find interesting. For those of you considering a career in sports law, here are five summer tips to consider:

1. Sports law is not just for jocks. Many summer associates shy away from sports law because they are not athletes. Really, there is no need to do so. Although most big firms have a few stereotypical jocks hovering around sports assignments, the two most accomplished sports attorneys that I have encountered are close to the opposite -- Jeffrey Kessler (Dewey & LeBoeuf) and Shepard Goldfein (Skadden, Arps). As Jeffrey Kessler once told me, the first thing he looks for in a sports attorney is a good litigator that understands antitrust. At the end of the day, being an athlete may help you to enjoy sports, but it is not needed to become a successful sports lawyer.

2. It is not all about the formal assigning process. When done politely, letting partners and senior associates know about your interest in sports makes perfect sense. Although big firms generally have a summer assignment person, this person only knows as much as is conveyed through weekly paperwork. As you will soon learn, many attorneys are bad about completing their paperwork. This means the formal channels are not always the best way to get interesting sports assignments. It is best to talk to people directly and try to build relationships.

3. Sometimes working hard is worth it, even as a summer. Although summer associates rarely need to overachieve to get their offers, getting into a top sports practice group is a tad more competitive. Because sports assignments are rare, try to grab any sports work available -- even if the work does not come at the best time for your social calendar. This shows dedication and commitment, as well as could help get you into the loop to receive future and more opportune sports assignments.

4. Beware of the "bait and switch." Just because you are getting sports work as a summer does not mean you will get the same work when you return. In fact, many firms give summer associates assignment preference over junior associates. Before locking yourself into any firm or practice area, try to talk to junior associates about what work they are really doing, and whether they are reasonably happy. Be especially skeptical of firms that lump sports work together with less desirable areas of practice such as antitrust due diligence and Hart-Scott-Rodino filings. If you are not going to get sports work as a first year associate, at least try to find an opportunity where you can build your litigation skills. A sound litigator can always transition later into sports.

5. Keep an open mind. When choosing a practice area, keep in mind that eventually the glamour of big-name sports clients will subside, and what will be left is the underlying legal practice. If you choose sports law as a career, make sure you actually enjoy antitrust, contracts, labor and IP. If not, you may want to explore another area. It is always easier to explore new areas during the summer than as a first-year associate. According to some, that was the original purpose behind law-firm summer associate programs.

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Marc Edelman is an attorney, business consultant, published author and professor, whose focus is on the fields of sports business and law. You can read his full bio by clicking here, and you can reach him by email by clicking here.