Warnock v. National Football League

356 F. Supp. 2d 535, 2005 U.S. Dist. LEXIS 2130, 2005 WL 357572
CourtDistrict Court, W.D. Pennsylvania
DecidedFebruary 9, 2005
DocketCivil Action 04-330
StatusPublished
Cited by2 cases

This text of 356 F. Supp. 2d 535 (Warnock v. National Football League) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Warnock v. National Football League, 356 F. Supp. 2d 535, 2005 U.S. Dist. LEXIS 2130, 2005 WL 357572 (W.D. Pa. 2005).

Opinion

MEMORANDUM ORDER

CONTI, District Judge.

Pending before the court is the motion by defendants National Football League and its member clubs (the “NFL”), including Pittsburgh Steelers Sports, Inc. (the “Steelers”) and Philadelphia Eagles Limited Partnership (the “Eagles”) (collectively referred to as “defendants”), to dismiss the complaint of plaintiff Robert C. Warnock (“plaintiff’ or ‘Warnock”) for lack of standing (Doc. No. 5). Plaintiff in his complaint alleges that defendants violated the Sherman Antitrust Act, 15 U.S.C. §§ 1-2, and the Clayton Act, 15 U.S.C. § 15, by acting in concert to force NFL host cities and counties to build new football stadiums — including Pittsburgh’s Heinz Field, home of the Steelers — and lease the stadiums to NFL clubs under favorable lease terms. Plaintiff alleges in particular that “by limiting the number and barring public ownership of NFL franchises, defendants forced Allegheny County to pay ... far more to build Heinz Field and to agree to more onerous lease terms to keep the Steelers in Pittsburgh than a marketplace free of these restraints would have demanded.” PL’s Compl. ¶ 64. Defendants argue in their motion to dismiss that plaintiff, a municipal taxpayer purporting to sue “[o]n behalf of Allegheny County,” lacks standing to assert his antitrust claims. The court agrees with defendants and will dismiss plaintiffs suit for lack of standing for the reasons set forth below.

Facts Accepted As True For Purposes of Deciding the Motion

In deciding defendants’ motion to dismiss for lack of standing, the merits of plaintiffs substantive claims are not at issue. Warth v. Seldin, 422 U.S. 490, 500, 95 S.Ct. 2197, 45 L.Ed.2d 343 (1975). Rather, the court will focus on those facts relevant to whether plaintiff has alleged “a personal stake in the action to warrant his invocation of federal court jurisdiction and to justify exercise of the court’s remedial powers on his behalf.” Id. at 498-99, 95 S.Ct. 2197. The facts forming the basis of plaintiffs relationship to the underlying claims are scant. Plaintiff alleges he is “an individual and taxpayer” who lives in Pittsburgh, Pennsylvania. Pl.’s Compl. ¶ 1. Plaintiff purports to bring the action “on behalf of Allegheny County” against “the NFL and all of its member teams for ongoing violations” of federal antitrust laws. Id. ¶ 58. Plaintiff does not allege that he is a prospective professional football owner, or that he is even a consumer of defendants’ product.

Plaintiff alleges that the NFL and its member teams have created a system in which demand for NFL franchises remains higher than the number of regions actually awarded franchises. Id. ¶ 8. In effect, plaintiff argues that the system created by the NFL is one of “franchise free agency.” Id. Plaintiff contends that the NFL and its member teams exploit this system in order to apply leverage to the cities, regions and *538 states of existing NFL teams to obtain taxpayer subsidies for the construction of new stadiums. Id. According to plaintiff, the NFL and the Steelers utilized the existing system — and, in the process violated federal antitrust laws — by forcing Allegheny County to construct Heinz Field for the Steelers on extremely favorable lease terms.

The crux of plaintiffs claims are as follows:

The citizens of Allegheny County were willing to build a new stadium for the Pittsburgh Steelers and agree to lease terms that allowed the franchise to field a competitive team while remaining profitable. Allegheny County residents never intended, however, to spend tax dollars merely to increase the Steelers’ profits or to increase the franchise value. Yet, the cumulative effect of the NFL’s antitrust violations forced Allegheny County to pay money far more [sic] to build Heinz Field and to agree to more onerous lease terms to keep the Steelers in Pittsburgh than a marketplace free of these trade restraints would have demanded. Execution of the lease required consent by the National Football League.

Id. ¶ 64. According to plaintiff, the Steel-ers’ lease terms provide that the team does not pay an annual base rent, that the team receives nearly all of the new revenue from Heinz Field, and that the Sports & Exhibition Authority of the City of Pittsburgh and Allegheny County (the “Sports & Exhibition Authority”) will be responsible for capital repairs and future expenditures at Heinz Field. Id. ¶¶ 57-60.

With respect to defendants’ alleged antitrust violations, plaintiff requests the court to award the following relief: (1) declare that the Heinz Field Stadium lease is voidable at Allegheny County’s discretion; (2) grant compensatory and punitive damages to Allegheny County in excess of $200 million dollars against the NFL and its member teams, trebling such damages if the court finds that defendants violated the Sherman Antitrust Act and the Clayton Act; (3) order plaintiff attorney fees and litigation costs; and (4) order other relief as the court deems just. Id.

Defendants filed their motion to dismiss arguing that plaintiff lacks standing to pursue his claims. Defendants contend that plaintiff cannot satisfy the constitutional requirements of standing encompassed in Article III of the United States Constitution solely on the basis that he is a municipal taxpayer. Defendants further assert that even if plaintiff alleged sufficient evidence to satisfy Article III standing requirements, plaintiff would be barred from pursuing his claims based upon prudential limitations to standing because plaintiffs claims amount to (1) a generalized grievance shared by all Allegheny County taxpayers and/or (2) an attempt to assert the legal rights of a third party. The parties requested oral argument, and a hearing on defendant’s motion to dismiss was held on October 8, 2004. At that time, plaintiff filed with the court letters from Allegheny County and the Sports & Exhibition Authority which stated that neither entity wanted to join plaintiff’s suit against defendants. See Doe. No. 15.

Standard of Review

A motion to dismiss tests the legal sufficiency of the complaint. Kost v. Kozakiewicz, 1 F.3d 176, 183 (3d Cir.1993). In deciding a motion to dismiss the court is not opining on whether the plaintiff will be likely to prevail on the merits. Rather, when considering a motion to dismiss, the court accepts as true all factual allegations in the complaint and views them in a light most favorable to the plaintiff. U.S. Express Lines Ltd. v. Higgins, 281 F.3d 383, 388 (3d Cir.2002). The pleader is required to “set forth sufficient information to out *539 line the elements of his claim or to permit inferences to be drawn that these elements exist.” Kost, 1 F.3d at 183 (citing 5A Charles A. Wright & Arthur R.

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Bluebook (online)
356 F. Supp. 2d 535, 2005 U.S. Dist. LEXIS 2130, 2005 WL 357572, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warnock-v-national-football-league-pawd-2005.