2006Unpublished venueRequires access

Removing the Major League Baseball from Antitrust Law Exemption

Jackie Yu-Lin Shao

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Abstract

The Major League Baseball (MLB) has been exempt from the antitrust laws since 1922, when the Supreme Court ruled in its favor in Federal Baseball Club of Baltimore, Inc. v. National Baseball Clubs. Although the Curt Flood Act gave Major League players the same right to sue under the antitrust laws challenging the Major League Baseballp's employment terms, yet the issues such as franchise expansion, Minor League Baseball, and broadcasting rights are still under the domain of the antitrust exemption. Whether or not these issues should be exempted from the antitrust laws is controversial. This paper provides an overview of the development of the antitrust law and collective bargaining, and the history of baseball exemption and landmark cases. Both sides of arguments of removing baseball exemption, as well as the related cases are presented Finally, this paper concludes with a suggestion that removing baseball completely from the antitrust exemption and rebuilding the infrastructure of baseball with the natural market forces is a more effective approach to benefit the business of the professional baseball.

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The Major League Baseball (MLB) has been exempt from the antitrust laws since 1922, when the Supreme Court ruled in its favor in Federal Baseball Club of Baltimore, Inc. v. National Baseball Clubs. Although the Curt Flood Act gave Major League players the same right to sue under the antitrust laws challenging the Major League Baseballp's employment terms, yet the issues such as franchise expansion, Minor League Baseball, and broadcasting rights are still under the domain of the antitrust exemption. Whether or not these issues should be exempted from the antitrust laws is controversial. This paper provides an overview of the development of the antitrust law and collective bargaining, and the history of baseball exemption and landmark cases. Both sides of arguments of removing baseball exemption, as well as the related cases are presented Finally, this paper concludes with a suggestion that removing baseball completely from the antitrust exemption and rebuilding the infrastructure of baseball with the natural market forces is a more effective approach to benefit the business of the professional baseball.

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Available abstract

The Major League Baseball (MLB) has been exempt from the antitrust laws since 1922, when the Supreme Court ruled in its favor in Federal Baseball Club of Baltimore, Inc. v. National Baseball Clubs. Although the Curt Flood Act gave Major League players the same right to sue under the antitrust laws challenging the Major League Baseballp's employment terms, yet the issues such as franchise expansion, Minor League Baseball, and broadcasting rights are still under the domain of the antitrust exemption. Whether or not these issues should be exempted from the antitrust laws is controversial. This paper provides an overview of the development of the antitrust law and collective bargaining, and the history of baseball exemption and landmark cases. Both sides of arguments of removing baseball exemption, as well as the related cases are presented Finally, this paper concludes with a suggestion that removing baseball completely from the antitrust exemption and rebuilding the infrastructure of baseball with the natural market forces is a more effective approach to benefit the business of the professional baseball.

Key concepts: League, Law, Supreme court, Club, Collective bargaining, Political science, Economics, Law and economics

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