USFL-NFL: Trump's Acquisition Of The New Jersey Generals & the NFL Antitrust Case under the Sherman Act
- Giancarlo Alighieri
- Jun 7, 2022
- 4 min read
Updated: Aug 29
Trump Acquires The New Jersey Generals
The intersection of politicians and businessmen associated with the sporting world has always been a captivating arena, and few figures have embodied this dynamic as distinctly as Donald J. Trump. The 1980s saw Trump enter the world of American football, with the acquisition of the New Jersey Generals in 1983 for 10 million dollars.
This period marked the rise of the United States Football League, a new professional football league that initially complemented the NFL by playing its games in the spring. The league showed early promise, offering an alternative to the established professional football landscape without directly competing with the NFL.
For Trump, the Generals would become more than a business investment. His ambitions for the team soon placed him at the forefront of the USFL’s challenge to the NFL, setting the stage for a high-profile legal battle.
USFL: Acquiring Elite Talent to Defy the NFL
Trump was aggressive in his pursuit of top talent as the New Jersey Generals and other USFL teams recruited established NFL stars throughout the mid-1980s. In 1983, Trump signed arguably the era’s hottest young talent, Herschel Walker, a legendary running back who won the Heisman Trophy in 1982. Walker entered into an exclusive three-year, $5 million contract, bringing one of college football’s biggest stars into the USFL.
Walker was only the beginning. Trump also signed veteran NFL quarterback Brian Sipe, the 1980 NFL MVP with the Cleveland Browns, for the 1984 USFL season. Trump also held productive discussions with New York Giants legend Lawrence Taylor, potentially paving the way for Taylor to switch to the USFL by the late 1980s.
Locking Horns with the NFL
Trump’s vision extended beyond the Generals, as his stern approach focused on taking the USFL into direct competition with the NFL. His goal was straightforward: Give American football some serious competition. Trump managed to convince the USFL in 1984 to switch from a spring schedule to the fall, taking the competition right to the NFL.
This decision led to the two leagues squaring off, an unprecedented move that rocked the sporting world and sought to transform professional football in the USA. Unfortunately, it was not a fruitful venture, with the NFL sabotaging the USFL through its monopoly of televised networks. This combination of circumstances effectively shut down the future of the start-up league.
The timing created a major television disadvantage for the USFL. In 1984, ABC, CBS, and NBC dominated the American sports broadcasting landscape, while ESPN served as the USFL’s primary cable television partner. Still in its infancy, ESPN lacked the reach to deliver the national audience needed to compete head-to-head with the NFL.
The NFL’s established network agreements gave it a commanding advantage in national exposure and advertising revenue. This left the USFL at a significant financial disadvantage as it challenged professional football’s established powerhouse.
Antitrust lawsuit against the NFL
Trump emerged as a leading public voice in the USFL’s fight against the NFL, representing the league in its high-profile antitrust battle. The antitrust case was brought under the Sherman Act, with the USFL alleging that the NFL conspired to put the league out of business. The lawsuit also accused the NFL of monopolizing television broadcasting opportunities for professional football.
"The NFL is one of the great monopolies in this country." Donald J. Trump
The USFL's legal challenge to the NFL began in October 1984, when attorney Roy Cohn filed the league's initial $1.32 billion federal antitrust lawsuit. Cohn, a longtime legal advisor and mentor to Donald Trump, was later replaced by the national law firm Finley, Kumble and lead trial lawyer Harvey Myerson. Cohn's declining health prevented him from continuing with the complex litigation.
As the case progressed, the USFL sought $567 million in damages, a figure that could have exceeded $1.7 billion under federal antitrust law, which allows successful plaintiffs to recover triple damages.
The Trial Verdict and the USFL’s Final Chapter
The case went to trial in the U.S. District Court for the Southern District of New York in Manhattan, where proceedings lasted 42 days. The lengthy federal antitrust trial placed the USFL's challenge to the NFL's dominance of professional football under intense legal scrutiny, with the league seeking substantial damages for what it argued were anticompetitive practices.
The July 1986 verdict was a victory for the Trump-led USFL lawsuit, with the jury finding that the NFL had used predatory tactics to maintain its monopoly over professional football. The result, however, was far less decisive, with the jury awarding the USFL just $1 in nominal damages. Under federal antitrust law, the award was trebled to $3, with interest adjustments bringing the final amount to $3.76.
The NFL was ultimately ordered to pay the USFL $5.53 million in attorney’s fees and $62,220 in court costs. Although the jury had awarded the USFL only $1 in damages, federal antitrust law allowed the league to recover its legal costs.
Despite winning its antitrust claim, the USFL's courtroom victory did little to save the league. With the 1986 season abandoned and the financial breakthrough it sought never materializing, the USFL effectively folded in August 1986. Its collapse ended the league's ambitious challenge to the NFL and the New Jersey Generals' run in professional football.
Sources: USFL-NFL Trial - Chicago Tribune - ESPN NFL
