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Judge Allows Antitrust Claim Against FIFA to Proceed in Puerto Rico

By  |  December 3, 2024
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A federal judge in Puerto Rico has dismissed several claims in a high-profile lawsuit filed by the Puerto Rico Soccer League (PRSL) against FIFA and other soccer governing bodies. However, the court left a critical antitrust claim intact, ensuring the legal battle will continue into the discovery phase.

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    U.S. District Judge Raúl M. Arias-Marxuach issued a decision last week dismissing allegations under the Racketeer Influenced and Corrupt Organizations Act (RICO), as well as claims for tortious interference, abuse of process, and breach of fiduciary duty under Puerto Rican law. These claims were part of PRSL’s broader lawsuit accusing FIFA, the Confederation of North, Central America and Caribbean Association Football (CONCACAF), and the Federación Puertorriqueña de Fútbol (FPF) of suppressing economic competition in Puerto Rico.

    However, Judge Arias-Marxuach denied FIFA’s motion to dismiss the antitrust claim, which forms the crux of PRSL’s legal challenge. According to Sportico, this decision enables the case to proceed to pretrial discovery, where both sides will exchange evidence and provide testimony.

    Allegations of Monopoly and Market Suppression

    The lawsuit, filed last year, alleges that FIFA and its affiliated organizations maintain a monopoly on the sanctioning of soccer events in Puerto Rico. PRSL, which organizes LigaPro tournaments and previously operated Liga Superior, the island’s top soccer league, contends that FPF’s actions forced its league to shut down in 2019.

    Per Sportico, PRSL claims that FPF, as FIFA’s governing body on the island, unfairly suppressed competition by planning to create a rival league while simultaneously discrediting PRSL’s operations. The complaint also highlights a 2019 incident where a FIFA-affiliated executive allegedly warned PRSL that FPF could penalize teams participating in unsanctioned tournaments, effectively restricting PRSL’s ability to organize events.

    Read more: FIFA Faces Antitrust Lawsuit in US Federal Court Over Puerto Rico Soccer Dispute

    Accusations of Racketeering and Antitrust Violations

    Although the RICO-related claims were dismissed, the remaining antitrust allegation portrays FIFA, CONCACAF, and FPF as engaging in a conspiracy to stifle competition. PRSL accuses the defendants of using deceptive tactics and misrepresentations to consolidate control over soccer activities on the island. According to the complaint, these actions were intended to exclude PRSL from the market and force it out of business.

    The lawsuit further outlines alleged misuse of financial transactions, including bank wires, to facilitate this scheme. PRSL’s antitrust theory centers on claims that the defendants unreasonably restrained trade in Puerto Rico and withheld sanctioning of PRSL’s tournaments to eliminate competition.

    Legal Implications

    With the antitrust claim now proceeding to discovery, the case will delve deeper into the operations and decision-making of FIFA, CONCACAF, and FPF. The outcome could have significant implications for soccer governance in Puerto Rico and potentially reshape how FIFA-affiliated organizations interact with independent leagues.

    Source: Sportico