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#6: Antitrust and Baseball

#6: Antitrust and Baseball. Context in which these issues arise. Ways to evade or limit MLB’s monopoly power Contract law doctrines Antitrust doctrines Labor law and collective bargaining agreements. Review of Organized Baseball’s Structure in the 20 th Century. Major League Constitution

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#6: Antitrust and Baseball

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  1. #6: Antitrust and Baseball SPORTS LAW FALL 2010

  2. Context in which these issues arise • Ways to evade or limit MLB’s monopoly power • Contract law doctrines • Antitrust doctrines • Labor law and collective bargaining agreements SPORTS LAW FALL 2010

  3. Review of Organized Baseball’s Structure in the 20th Century • Major League Constitution • National Agreement • Professional Baseball Agreement • The “Basic Agreement” (CBA) SPORTS LAW FALL 2010

  4. Common Law Issues: Lajoie • Background • In 1900, hit .346 w/ 92 RBIs in 102 games for Phillies • in 1901, jumped to the then-crosstown Athletics, led lg w/ .422 avg, .635 slg., 14 HR, and 125 RBIs • While NL sal cap max of $2500, AL agreed w/ player ass’n to no cap, 10-day termination by either side, ban on farming w/o player consent, health benefits, and arb clause SPORTS LAW FALL 2010

  5. /2 Lajoie • How to measure Phillies’ damages for loss of Lajoie’s services? • Why can’t his services be obtained from others? SPORTS LAW FALL 2010

  6. Chase and Federal League “War” • Suit by White Sox to bar Chase from playing for Buffalo Buffeds • Mutuality of Obligation • Common law monopoly • Limited value of precedent SPORTS LAW FALL 2010

  7. Background to Federal Baseball • Fairly clear under modern antitrust standards that AL and NL had illegally monopolized baseball • Following bench trial, Judge KM Landis sat on case for 11 months • In dire straits, Fed owners settle • $600,000 cash • Chi and StL owners can buy Cubs, Browns • Reject bid by Balt owner to buy Cards and move SPORTS LAW FALL 2010

  8. Flood v Kuhn • Stated reasons for decision: 1) CONG AWARENESS AND 30 YRS INACTION: 2) BASEBALL DEVELOPED RELYING ON IMMUNITY 3) RETROACTIVITY PROBS W/ OVERRULING FED BASEBALL: 4) REMEDY SHD BE LEGISLATIVE SPORTS LAW FALL 2010

  9. /2 Flood • Is there anything unique about baseball? About sports in general? • Do the 4 Toolson/Flood arguments persuade you? SPORTS LAW FALL 2010

  10. Application of State Antitrust Law • Flood’s 2 theories: • Uniformity essential • Undue burden on interstate commerce • Imagine MLB trying to comply with different states’ applying different antitrust laws SPORTS LAW FALL 2010

  11. Scope of the Baseball Exemption • Application to franchise relocation • Legislative inaction • Detrimental Reliance • Retroactivity • Preference for Legislative Solution SPORTS LAW FALL 2010

  12. What is the “Business of Baseball”? • MLB concedes: doesn’t cover CBS purchase of Yankees • Lower courts say exemption covers: • Umpires • Minor Leagues • Losses from Baseball Strike • BUT NOT • Concessions • Broadcasting • Baseball cards SPORTS LAW FALL 2010

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