By James Sutherland on SwimSwam
The trial between the International Swimming League (ISL) and World Aquatics got underway on Monday in a federal court in California, with the case finally being heard by a jury after originally being filed back in 2018.
The ISL claims World Aquatics blocked it from hosting events in 2018, namely the 2018 Energy For Swim event, and prevented it from obtaining sponsors by not allowing swimmers to compete in their new league.
This past summer, World Aquatics reached a $4.6 million settlement with a group of pro swimmers, led by named plaintiffs Tom Shields and Katinka Hosszu, in a separate lawsuit where the athletes accused the global governing body of restricting them from competing in outside competitions.
On Monday, eight jurors heard opening arguments from the ISL and World Aquatics, according to Courthouse News Service.
Attorney William Isaacson, representing the ISL, said World Aquatics violated the Sherman Antitrust Act by threatening to penalize swimmers if they joined the ISL or competed in their events.
“It’s an antitrust conspiracy used by FINA to stop competition,” Isaacson told the jury, according to Courthouse News Service. He added that because World Aquatics controls all national federations and prohibited thier swimmers from working with “unauthorized or suspended bodies,” the ISL was unable to secure sponsorships, including after they started hosting events in 2019.
World Aquatics would ultimately amend its rules to allow swimmers to participate in unsanctioned leagues or clubs–which opened the door for the ISL to begin running in 2019–but the ISL still claims it is owed over $40 million in damages from missed opportunities in 2018.
Defense attorney Christopher Yates, representing World Aquatics, said the ISL’s antitrust claim falls short because of the thousands of swimming events taking place every year not affiliated with World Aquatics, and that the governing body’s rules only apply to affiliated organizations.
“[The ISL] had full and fair opportunity to compete in the marketplace,” Yates said, according to Courthouse News Service.
Yates said the ISL approached World Aquatics about forming an exclusive partnership that would see the league gain WA’s approval, allowing swimmers to compete without the risk of suspension while getting the support of national federations and allowing sponsors and broadcasters to comfortably back the ISL.
ISL founder Konstantin Grigorishin offered World Aquatics $50 million over 10 years, but a deal was never reached due to mismanagement by the ISL, Yates said.
“In the real world companies were not interested to have their brands represented by the ISL,” Yates said, adding that, despite the ISL hosting 40 events between 2019 and 2021, they were unable to attract sponsors and pay debts due to being “embroiled in controversy.”
“Even the best run startups can fail,” Yates said, also saying the ISL “had no reason for running a sports league.”
“Mr. Grigorishin is looking for someone to blame for his failure.”
World Aquatics Treasurer Dale Neuburger was the first witness called to the stand, according to Courthouse News Service. He said in a sworn testimony that after months of negotiations about a potential partnership, the ISL acted “inappropriately” and sent documents to USA Swimming without any mention of World Aquatics.
The trial continued on Tuesday and is scheduled to run through January 26th.
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