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1 1 (June 22, 2004)

handle is hein.crs/crsaioi0001 and id is 1 raw text is: Order Code RS21869 June 22, 2004 CRS Report for Congress Received through the CRS Web Clarett v. National Football League and the Nonstatutory Labor Exemption in Antitrust Suits Nathan Brooks Legislative Attorney American Law Division Summary On May 24, 2004, the United States Court of Appeals for the Second Circuit delivered its opinion in Clarett v. National Football League. In that case, a former college running back challenged on antitrust grounds the NFL's so-called three-year rule, which prohibits players from entering the NFL Draft unless they are three years removed from high school. The Second Circuit ruled that the three-year rule is protected from antitrust challenges by the nonstatutory labor exemption, which shields the collective bargaining process from antitrust scrutiny in deference to federal labor laws. This report will be updated as events warrant. Introduction. Maurice Clarett starred as a running back for the Ohio State Buckeyes in 2002, helping his team to the national championship and earning Big Ten Freshman of the Year honors. The next season, however, he was suspended from the football team after the University found that he had accepted thousands of dollars worth of improper benefits and lied to investigators. Rather than return to Ohio State for his junior year, Clarett elected to declare for the National Football League (NFL) Draft. The NFL would not allow Clarett to enter the draft, however, citing League rules requiring players entering the draft to be three years removed from high school. Clarett filed suit against the NFL, arguing that the three-year rule acts as an unreasonable restraint on trade in violation of sections one and two of the Sherman Antitrust Act' and the Clayton Act.2 The NFL argued that its three-year rule is shielded from antitrust scrutiny by the non-statutory labor exemption. The district court found for Clarett,3 making him eligible for the 2004 NFL Draft. As the Draft was quickly 1 15 U.S.C. §§ 1, 2. 2 15 U.S.C. §§ 12-27. 3 Clarett v. National Football League, 306 F.Supp.2d 379 (S.D.N.Y. 2004) [hereinafter Clarett (continued...) Congressional Research Service **** The Library of Congress