The Effect of Repeal of the Baseball Antitrust Exemption on Franchise Relocations

For seven decades since the Supreme Court's decision in Federal Baseball Club of Baltimore v. National League, Major League Baseball has been exempt from antitrust attack under the federal antitrust laws. This exemption has, among other things, enabled the owners of baseball teams, through concerted action, to control the relocation of baseball franchises from one city to another to a degree which would be impossible for other businesses not enjoying an exemption from the antitrust laws. This article first reviews the history of baseball's antitrust exemption. It then proceeds to examine judicial treatment of horizontal market restraints under the Sherman Act in both non-sports cases and in cases involving sports other than baseball which do not enjoy an antitrust exemption. The article then proceeds to examine baseball's current rules governing franchise relocation. Finally, the article examines whether baseball's current regulatory scheme *264 could withstand judicial scrutiny if baseball's antitrust exemption were revoked.