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Baseball Antitrust Exemption

MAJOR LEAGUE BASEBALL=S ANTITRUST EXEMPTION HISTORYIn the United States, professional sports are an American way of life and culture. These leagues started out as entertainment for all of its spectators, but progressed into Abig business@ which has allowed team owners to prosper tremendously. Initially, majority of the different professional sports team owners used various methods to restrict players= mobility and salaries and/or attempted to monopolize the sport in some aspect. However, through the judicial courts of the federal government, antitrust laws apply to all professional sports, except baseball. The antitrust statutes applicable to professional sports are within the Sherman Act. No area of law has impacted professional sports over the past thirty years than antitrust. (Roberts, 135) First enacted by Congress in 1890, the Sherman Act was to curb concentrations of power that interfered with trade and reduced economic competition. These laws are the major mechanisms available to affect change in sports. (Champion, 52) Various groups have used the antitrust laws: e.g., players, owners, colleges, etc. The goal of these antitrust plaintiffs was to achieve some result at the expense of management, whether it


To add to the player=s list of grievances was the reserve clause in a player=s contract, which players viewed as a device for lowering salaries and a denial of one=s right to sell his services to the highest bidder. In Federal Baseball, the United States Supreme Court upheld the Court of Appeals decision. (Synder, 38) In fact the court held that other professional team sports engaged in interstate commerce and were subject to the federal antitrust laws. In Toolson, George Toolson, a New York Yankee, refused to accept an assignment to a minor league team and was placed on an ineligible list. The District Court dismissed the case based on its reliance of precedent set in Federal Baseball. Both leagues negotiated in a so-called National Agreement Athe first official baseball document to include the reserve provisions. A player could not choose to play for another team or effectively campaign for a salary raise. The District Court=s decision was overturned by the Court of Appeals. To prevent the turmoil team switching was causing, the team owners secretly agreed to Areserve@ five players at the end of the season. He then appealed to the United States Supreme Court. In 1913, Organized Baseball had a new contender on the playing field, a newly formed league called the Federal League. @ (Synder, 13) Its compensation of winning changed the entire ethic of baseball from one of sport to one of victory by whatever method.

Common topics in this essay:
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Approximate Pages = 19 (250 words per page double spaced)

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