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Baseball's Antitrust Exemption

Michael H. Juarez

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Abstract

Major League Baseball (Baseball) traditionally has enjoyed an exemption from antitrust laws even though Baseball is a business that clearly engages in interstate commerce. This antitrust immunity has allowed owners to restrict franchise expansion and relocation as well as to shackle players to a given team by using the reserve system. 1993 congressional hearings indicate that Congress has maintained the exemption in exchange for Baseball acting in the best interests of the American public. However, incidents over the past few years point to Baseball's repeated disregard of the public interest. This Note contrasts the relevant case law and congressional response to the antitrust exemption with Baseball's clear disregard of the public interest concluding with possible resolutions to address the presently unchecked power of the owners to act in their own best interests.

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What this paper is about

Major League Baseball (Baseball) traditionally has enjoyed an exemption from antitrust laws even though Baseball is a business that clearly engages in interstate commerce. This antitrust immunity has allowed owners to restrict franchise expansion and relocation as well as to shackle players to a given team by using the reserve system. 1993 congressional hearings indicate that Congress has maintained the exemption in exchange for Baseball acting in the best interests of the American public. However, incidents over the past few years point to Baseball's repeated disregard of the public interest. This Note contrasts the relevant case law and congressional response to the antitrust exemption with Baseball's clear disregard of the public interest concluding with possible resolutions to address the presently unchecked power of the owners to act in their own best interests.

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Available abstract

Major League Baseball (Baseball) traditionally has enjoyed an exemption from antitrust laws even though Baseball is a business that clearly engages in interstate commerce. This antitrust immunity has allowed owners to restrict franchise expansion and relocation as well as to shackle players to a given team by using the reserve system. 1993 congressional hearings indicate that Congress has maintained the exemption in exchange for Baseball acting in the best interests of the American public. However, incidents over the past few years point to Baseball's repeated disregard of the public interest. This Note contrasts the relevant case law and congressional response to the antitrust exemption with Baseball's clear disregard of the public interest concluding with possible resolutions to address the presently unchecked power of the owners to act in their own best interests.

Key concepts: Tax exemption, Business, Law and economics, Law, Political science, Economics

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