Bob Gilder, Ken Green, John Inman, Rafe Botts v. Pga Tour, Inc., a Maryland Nonprofit Corporation

Karsten Manufacturing Corporation and eight professional golf players challenge the implementation of a new rule by the PGA Tour (PGA) banning clubs with U-shaped grooves. Karsten and the professional player plaintiffs challenge the actions of the PGA on antitrust and state law grounds. After a three day hearing, the district court granted a preliminary injunction enjoining the PGA from implementing the rule. 727 F.Supp. 1333 . The PGA appeals. We affirm.

FACTUAL AND PROCEDURAL BACKGROUND

This action concerns a rule change implemented by the PGA that bans all clubs on which the cross-section of the grooves on the face of the club is in the shape of a square or “U” as opposed to a “V”:

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Karsten Manufacturing Corporation (Karsten) designs, manufactures, and sells a variety of golf equipment including: putters, woods, golf bags and “Ping Eye 2” golf clubs. All of Karsten’s Ping Eye 2 golf clubs have U-shaped grooves. Kar-sten’s Ping Eye 2 golf clubs are top selling clubs in the United States for both professional and amateur players. Karsten’s marketing strategy is that it supplies the same equipment to the amateur as to the professional. Karsten…