Two Warner Bros. Discovery board members, Steven A. Miron and Steven O. Newhouse, have resigned following concerns from the U.S. Department of Justice about a potential antitrust violation. The DOJ's probe focused on whether their service violated Section 8 of the Clayton Antitrust Act, as both executives were also serving on the board of Charter Communications, a competitor. The resignations come after the merger between Discovery Inc. and WarnerMedia, and the board will be reduced from 13 members to 11 with no immediate plans to replace the departing members.
Steven Miron and Steven Newhouse resigned from the Warner Bros. Discovery board amid a Justice Department investigation into potential antitrust violations related to their service on the board. The investigation focuses on whether their simultaneous roles on the boards of competing companies violated the Clayton Antitrust Act. Both Miron and Newhouse, who were independent directors, chose to resign immediately, citing the changing dynamics of competition in the entertainment industry. Their resignations led to a reduction in the size of the board, and the company expressed gratitude for their contributions while acknowledging their departure.
A group of states, including West Virginia, Colorado, Illinois, New York, Ohio, and Tennessee, has filed a federal lawsuit alleging that the NCAA's transfer rule for college athletes violates antitrust law. The lawsuit challenges the NCAA's authority to impose a one-year delay in the eligibility of certain athletes who transfer between schools, arguing that it unjustifiably restrains their ability to engage in the market for their labor. The states seek a temporary restraining order against the NCAA from enforcing the transfer rule, citing lost potential earnings and the denial of opportunities for athletes. The NCAA expressed disappointment in the legal action and believes that member schools should propose alternative rules rather than resorting to lawsuits.
The NFL's new ban on owners giving equity to players and employees could potentially be a violation of collusion and antitrust laws. The rule, created to prevent an "arms race" of equity requests, may be challenged by the NFL Players Association as collusion and by non-players as an antitrust violation. The league's decision to unilaterally change the rules without bargaining with the union and preventing equity transfers to players could be seen as collusion. Additionally, the antitrust laws come into play as the NFL consists of 32 independent businesses, and some argue that owners should be allowed to make their own decisions regarding ownership distribution. The league seems willing to take its chances in court, given the significant financial stakes involved.
