Marucci Sports, LLC v. National Collegiate Athletic Ass'n
2014 U.S. App. LEXIS 8494
| 5th Cir. | 2014Background
- Marucci Sports, a new non-wood baseball-bat manufacturer, sued the NCAA and NFHS after several of its aluminum bat models were decertified under the BBCOR (Bat-Ball Coefficient of Restitution) Standard, which limits how “hot” non-wood bats may be for college and high‑school play.
- BBCOR testing and certification (including audits and decertification after multiple failures) is performed by Washington State University (WSU); Marucci’s appeals of decertification to the NCAA were unsuccessful.
- Marucci alleged the BBCOR Standard was adopted and enforced to protect incumbent large bat manufacturers (Rawlings, Easton, DeMarini, Louisville Slugger) and to exclude new entrants like Marucci, bringing claims under § 1 of the Sherman Act (and state law claims the appeal does not contest).
- The district court dismissed Marucci’s Second Amended Complaint for failure to state a § 1 claim and denied leave to file a further amended complaint; Marucci appealed the Sherman Act dismissal and the denial of leave to amend.
- The Fifth Circuit affirmed: it held Marucci failed to plead a plausible conspiracy (no facts showing a “meeting of the minds”) and failed to allege injury to competition (only alleged competitor-specific harm), and it found denial of further amendment was not an abuse of discretion because another amendment would have been futile.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether defendants engaged in a § 1 conspiracy to restrain trade | Marucci: NCAA/NFHS, WSU, and incumbents agreed to adopt/enforce BBCOR to exclude new entrants and protect incumbents | NCAA/NFHS: BBCOR is a safety/competition‑balancing rule; no factual allegation of an agreement to restrain trade | Held: Dismissed — complaint pleads only conclusory allegations; no factual “meeting of the minds” to plausibly allege a conspiracy (Twombly/Monsanto standard) |
| Whether BBCOR unreasonably restrained trade / injured competition in the non‑wood bat market (rule of reason) | Marucci: BBCOR’s enforcement discriminates against new entrants and favors incumbents, harming competition | NCAA/NFHS: BBCOR regulates conditions of the contest to enhance safety/competitive balance and is presumptively procompetitive; Marucci alleges only competitor‑specific injury | Held: Dismissed — BBCOR is a rules‑of‑the‑contest regulation entitled to a procompetitive presumption; Marucci’s allegations are speculative and show only plaintiff‑specific harm, not market injury |
| Whether denial of leave to amend the complaint was an abuse of discretion | Marucci: Should be allowed a third amendment to cure pleading defects | NCAA/NFHS: Two prior amendments were allowed; further amendment would be futile | Held: Affirmed — district court did not abuse discretion; further amendment would have been futile after repeated failed attempts |
Key Cases Cited
- Wampler v. Sw. Bell Tel. Co., 597 F.3d 741 (5th Cir. 2010) (standard of review for Rule 12(b)(6) dismissal)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007) (plausibility pleading required; need factual allegation of agreement in conspiracy cases)
- Monsanto Co. v. Spray‑Rite Serv. Corp., 465 U.S. 752 (1984) (definition of concerted action and requirement of conscious commitment to a common scheme)
- Leegin Creative Leather Prods., Inc. v. PSKS, Inc., 551 U.S. 877 (2007) (distinction between per se rule and rule of reason; factors for analysis)
- Bd. of Regents of Univ. of Okla. v. Nat’l Collegiate Athletic Ass’n, 468 U.S. 85 (1984) (rules defining conditions of the contest are presumptively procompetitive)
- Am. Needle, Inc. v. Nat’l Football League, 560 U.S. 183 (2010) (§1 applies only to concerted action that restrains trade)
- Apani Sw., Inc. v. Coca‑Cola Enters., Inc., 300 F.3d 620 (5th Cir. 2002) (elements of a §1 Sherman Act claim)
- Stripling v. Jordan Prod. Co., LLC, 234 F.3d 863 (5th Cir. 2000) (futility of amendment reviewed under Rule 12(b)(6) standard)
