As the Washington Nationals Major League Baseball team completes its
first season, Bruce Fein has penned “Baseball’s Privileged Antitrust Exemption”
(Washington Lawyer, Oct. 2005), in which he argues:
“[T]he message to the Supreme Court should be, be done
with this indefensible judicial error perpetrated many long
innings ago.”
Fein describes the history of the exemption, beginning with the
1922 Federal Base Ball Case, in which the Supreme Court declared
that baseball is not interstate commerce, and thus is not subject to
the Sherman Act. [No other professional sport has been granted this
court-made exemption, and Congress has not extended the blanket
exemption to other sports.] He focuses on the harm that MLB has
done to the baseball fans of Washington, DC, due to the demands of
Peter Angelos, owned of the Baltimore Orioles, and the protection of
the antitrust exemption. Fein explains further that Angelos:
“eventually lost that battle against the arrival of a new team,
but seemingly has won the war by obtaining monopolistic
control over that team’s television rights. In a largely secret
part of the Washington franchise award, MLB bowed to
Angelos’s ultimatum that the new team be forced to become
a fringe minority partner in a new regional sports network, the
Mid-Atlantic Sports Network (MASN), controlled by him, with
broadcast rights for both the Orioles and the Nationals. Angelos
will own 90 percent of MASN, which might recede to 67 percent
over the next 30 years.
“The 90–10 split favoring Angelos is incontestably a noncompetitive
arrangement. Baltimore’s broadcast rights are decidedly inferior to
Washington’s. Baltimore is the 23rd largest media market, whereas
Washington is the eighth largest. Washington features more than
twice the number of television sets and twice the personal income
of Baltimore.”
You can learn more about the Baseball Antitrust Exemption at the
American Antitrust Institute‘s Research Guide. It was discussed
last December at the Sports Law Blog, and here by Skip Sauer,
the Sports Economist. f/k/a discussed the exemption last year
We welcomed the new DC Nats, here. Skip Sauer described
the deal that made it possible here.
lightning…
i lose jeter’s pop-up
in a blaze of static
rainy night
a hole in the radio
where a ballgame should be
Ed Markwoski
“baseballg” for more real baseball haiku click here
“OHolmes” Lawyer Fein seems to find it a bit ironic that Justice
Oliver Wendell Holmes, Jr., who authored the majority opinion in
the Federal Baseball Case had the following to say in his “The
Path of the Law:
“It is revolting to have no better reason for a rule of law
than that so it was laid down in the time of Henry IV. It
is still more revolting if the grounds upon which it was
laid down have vanished long since, and the rule simply
persists from blind imitation of the past.”
October 1, 2005
exempt this! baseball, antitrust & stare decisis
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