Friday, November 22, 2013

John Henry Named In Class-Action Lawsuit

(Getty Images)
Red Sox principal owner John Henry has been named (along with many others) in a "consumer" class-action lawsuit that claims MLB and TV providers (like Henry's NESN) violated the federal Sherman Anti-Trust Act by entering into anti-competitive deals that restrict the viewing of "home team" live games over the Internet and TV. The suit alleges that so-called "co-conspirators" (MLB and owners like Henry) agreed to "divide the live-game video presentation market into exclusive territories, which are protected by anticompetitive blackouts." Henry's legal response has been to call the suit a "fishing expedition" and has filed motions to block his testimony and the turning over of years worth of financial records for the Red Sox and NESN. Some believe that the suit is—in fact—a 'Trojan Horse' to force a grander discussion of why baseball is the only sport with an anti-trust exemption. In any event, Henry is right at the center of the action. This should start to get interesting in December—when court proceedings resume.