How does the sport of professional baseball have an antitrust exemption?

What will be an ideal response?


The sport of professional baseball has held a unique exemption from antitrust laws in accordance with the controversial interpretation of the Supreme Court in Federal Baseball Club of Baltimore, Inc. v. National League of Professional Baseball Clubs, 259 U.S. 200 (1922). The Court held that antitrust laws do not apply to professional baseball as baseball did not involve interstate commerce. Even though players traveled across state lines, Justice Oliver Wendell Holmes held that it was only incidental to the game and baseball was "purely a state affair" and held to remain exempt from antitrust laws. The Curt Flood Act of 1998 (15 U.S.C. § 27(a)) was an attempt by Congress to legislatively override the antitrust ruling in Federal Baseball. However, the Curt Flood Act is limited only to certain activities of baseball and has very little effect on prior court decisions or other practical applications. Still, the antitrust exemption is only repealed as to employment-related activities. In addition, section (b)(2) of the Curt Flood Act specifically excludes the Major League Baseball Constitution from antitrust coverage, including its dealings with minor league baseball. 15 U.S.C. §27a(b)(2).

Legal Studies & Paralegal

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