Heldman v. United States Lawn Tennis Association

354 F. Supp. 1241
CourtDistrict Court, S.D. New York
DecidedFebruary 7, 1973
Docket73 Civ. 162 (MP)
StatusPublished
Cited by22 cases

This text of 354 F. Supp. 1241 (Heldman v. United States Lawn Tennis Association) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heldman v. United States Lawn Tennis Association, 354 F. Supp. 1241 (S.D.N.Y. 1973).

Opinion

OPINION

POLLACK, District Judge.

The plaintiff, a recent promoter of women’s professional tennis and the plaintiff-intervenor, ranked the world’s number one woman professional tennis player, have sued to enjoin the United States Lawn Tennis Association (“USLTA” hereafter) and its officials from alleged interference with their respective business opportunities including plaintiff’s promotion of professional tournaments and plaintiff-intervenor’s freedom to play professional tennis in any tournament where other professionals are playing for prize money.

The defendants are charged with barring or threatening to bar women professional tennis players who participate in events that do not accept USLTA tournament rules and obligations from competing in prize money tournaments sanctioned by USLTA — those for which the rules of USLTA are accepted. The plaintiff is engaged in promoting tournaments for players under contract to her for which she has failed or refused to obtain USLTA sanctions. The complaint charges that the alleged conduct of defendants in this regard is in violation of the antitrust laws and amounts to a boycott and restraint of trade under Section 1 of the Sherman Act. The complaint further asserts that defendants’ conduct unlawfully interferes with plaintiffs’ contractual and business relations and is actionable under state law.

The complaint was filed on January 9, 1973 and 10 days later plaintiff presented therewith an application returnable January 26, 1973 for a preliminary injunction pursuant to Rule 65 of the Federal Rules of Civil Procedure and Section 16 of the Clayton Act, 15 U.S.C. § 26, together with a request for a temporary restraining order. The Court ordered an immediate evidentiary hearing on the application and evidence was taken on five trial days, commencing on January 26, 1973, consisting of the testimony of witnesses and a substantial volume of exhibits. Decision was reserved on conclusion of the hearing.

In order to view the issues on this application in proper focus it is necessary to understand the backgrounds of the parties and the events from which this pontroversy arises. They are the following:

1. The USLTA

a. Amateur Competition

Defendant USLTA is a non-profit membership organization founded in 1881 and devoted to the development of tennis as a means of healthful recreation *1244 and physical fitness and to the establishment and maintenance of rules of play and high standards of amateurism and good sportsmanship. None of the officers receive any compensation for what they do.

The Constitution of the USLTA provides that there are five categories of members: Sectional Associations and

Direct Member Clubs which are the only voting members of the Association, and Member Clubs and Organizations, Individual Members and Honorary Members. There are only three Direct Member Clubs, 17 Sectional Association members and several hundred Member Clubs and Organizations. A current Standing Order provides that all players resident in the United States or Puerto Rico, desiring to play in USLTA sanctioned tournaments, are required to enroll as Individual Members of the USLTA.

In order to achieve its objectives, the USLTA promulgated rules and regulations incorporated within its By-Laws and Standing Orders, for the approval or “sanctioning” of tennis tournaments, exhibition matches or team matches proposed to be held by any of its members.

There are sound reasons for sanctioning which are not anti-competitive in purpose. It assures uniformity of rules of play so that the caliber of players may be rated or “ranked” ón the basis of an identical standard; it aids to assure an orderly schedule of tournaments which accommodates the reasonable needs of the players, the promoters and sponsors for organized competition; and it fosters the aim of providing the public with tennis competition of high caliber and ethical standards. Sanctioning indicates that a particular tournament is an official USLTA approved tournament, that the rules of tennis as defined in the Official USLTA Yearbook will be followed, that proper draws will be made, and that the results of the event will be considered for USLTA and local ranking purposes.

Under the rules and regulations of the USLTA, players who compete in unsanctioned events where spectator admission is charged, players’ expenses paid or prize money offered, may be debarred from tournaments conducted pursuant to USLTA rules and regulations. Such action may, however, be taken only in accordance with specific provisions of the USLTA by-laws which provide such players with a full hearing, including the right to be represented by counsel and the right to appeal; debarment is not mandatory.

Prior to 1968, the USLTA only sanctioned amateur tournaments. There were professional tennis tournament players prior to that time, but they did not come under the jurisdiction of the USLTA once they “had turned pro.” Rather, they played under contract with individual promoters and they toured the country playing exhibitions and tournaments; they were sometimes referred to as “contract pros” or “touring pros”.

b. Professional Competition

In 1968, the USLTA along with the International Lawn Tennis Federation (“ILTF” hereafter) and its ninety-six member associations reorganized this system. Professional ■ Players were allowed to play for prize money and to participate in designated USLTA sanctioned events; these are players who accept and perform under the rules and regulations of the USLTA and the events are designated as “open” tournaments.

Pursuant to the standing rules and regulations of the USLTA, a Professional Player is eligible to participate in sanctioned USLTA tournaments if that player has played only in tournaments sanctioned by the USLTA. Should that player participate in a “non-sanctioned” event, in which prize money is awarded, that player may be assigned the status of a contract pro, in which event he or she may participate only in those USLTA tournaments which are designated “open for all categories” of players, i. e., those who do or do not play under USLTA rules. A contract pro may apply for reinstatement to be permitted thereafter to play under the rules and regulations of USLTA thus restor *1245 ing his eligibility for sanctioned tournaments.

After the change mentioned above was effected in 1968, promoters began to place top professional men under contract and to deliver them to tournaments only for a fee. The international coordinating body for amateur and professional tennis (ILTF) reacted to this development by closing all events to players under contract to such promoters. The ILTF has sanctioning power over international tournaments, including the U.S. “Open” held at Forest Hills.

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Bluebook (online)
354 F. Supp. 1241, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heldman-v-united-states-lawn-tennis-association-nysd-1973.