According to experts, the Supreme Court battle over who has the right to manufacture the NFL official headgear could have an important effect that goes beyond the making of hats. The outcome of this battle could affect all professional sports and the way business work in the United States.

Next Wednesday the Supreme Court will hear the arguments from a former NFL clothing manufacturer that is trying to change rulings that the National Football League is one business and not 32 separate teams that work together. As one business only the NFL is immune to an antitrust complaint.

In case the court determines that the NFL acts as a single business entity, all the teams that are part of it will be able to negotiate deals as a unit. Currently, teams negotiate separately and owners have to compete with each other over player salaries and ticket prices. “Make no mistake about it, this case is about more than just hats,” executive director of the NFL Players Association DeMaurice Smith commented about the case.

Players’ lawyers have argued that if the court grants the NFL an antitrust exemption this could lead to player strikes not only in the National Football League but also in basketball, hockey and other professional sports. This could also mean the end of free agency and a raise in ticket prices. Players’ salaries could be reduced too as a result.

“NFL players have advanced the game - by forcing free agency, for example - because of the ability to challenge the NFL on antitrust violations,” DeMaurice commented. “If the Supreme Court grants the NFL immunity from those laws, 50 years of precedent will be ignored, and the game will suffer as a result.”

The company suing the NFL is American Needle Inc., based in Buffalo Grove, Illinois. This company used to manufacture NFL headgear until the National Football League signed a contract in 2001 granting Reebok International Ltd. the exclusivity to manufacture NFL garments.

In 2004, American Needle Inc. decided to sue the NFL and Reebok because it considered that the contract was in breach of the antitrust regulations. However, lower courts dismissed the suit stating that there is nothing in the antitrust laws that prohibits the NFL teams from cooperating on clothing licensing.