Baseball's Antitrust Exemption

[Heathbar012]

The NFLPA has filed collusion charges against NFL owners.

NFLPA files collusion claim vs. NFL's owners - ESPN

A while back we were discussing baseball's antitrust exemption, and this is suit is one situation that cannot occur in MLB due to their exemption. It can't very well be collusion if the league is an admitted monopoly with a board of directors that control the franchises (owners). I don't know if this is good or bad for sports or even a capitalism based democracy, but I do know there is going to be a professional baseball season in America this year, and this is likely not the case for football or basketball (other than the USFL, which as we went over, can't really exist in any capacity for baseball due to the antitrust exemption).

Of course, there have been strikes in baseball, and 1994 was one of the saddest summers of my life (especially because Matt Williams was definitely going to break Roger Maris' record, and the Giants would've met the Expos in the NLCS), but since then the NHL has had a lengthy lockout, and it looks like both the NBA and NFL will have the same, shortly. Do antitrust exemptions for all sports leagues give too much power to the owners? Possibly, but that's when labor unions can actually be helpful with leveling the playing field rather than obstructions to an agreement. This NFLPA suit only compounds already existing problems, and would be avoided if the league had an exemption.

 

[tzill]

The NFLPA has filed collusion charges against NFL owners.

NFLPA files collusion claim vs. NFL's owners - ESPN

A while back we were discussing baseball's antitrust exemption, and this is suit is one situation that cannot occur in MLB due to their exemption. It can't very well be collusion if the league is an admitted monopoly with a board of directors that control the franchises (owners). I don't know if this is good or bad for sports or even a capitalism based democracy, but I do know there is going to be a professional baseball season in America this year, and this is likely not the case for football or basketball (other than the USFL, which as we went over, can't really exist in any capacity for baseball due to the antitrust exemption).

Of course, there have been strikes in baseball, and 1994 was one of the saddest summers of my life (especially because Matt Williams was definitely going to break Roger Maris' record, and the Giants would've met the Expos in the NLCS), but since then the NHL has had a lengthy lockout, and it looks like both the NBA and NFL will have the same, shortly. Do antitrust exemptions for all sports leagues give too much power to the owners? Possibly, but that's when labor unions can actually be helpful with leveling the playing field rather than obstructions to an agreement. This NFLPA suit only compounds already existing problems, and would be avoided if the league had an exemption.

I believe the NFL has a limited anti-trust exemption, which allows it to have a draft (a violation of the Commerce Clause) and a rookie salary scale (price fixing). Part of the limited exemption is a responsibility not to collude, and the hammer the government has over the NFL is the withdrawal of the exemption.

 

[Heathbar012]

I believe the NFL has a limited anti-trust exemption, which allows it to have a draft (a violation of the Commerce Clause) and a rookie salary scale (price fixing). Part of the limited exemption is a responsibility not to collude, and the hammer the government has over the NFL is the withdrawal of the exemption.

Very interesting. Obviously, I know less about the NFL's limited exemption. Do the NBA and NHL have something similar, if only for their drafts?

As far as the lawsuit in question, there aren't many details released other than it having to do with the negotiation of TV contracts by the owners. I contend that collusion is impossible in these negotiations because the individual NFL franchises should be free to negotiate with media outlets as a single entity (much like a fast food chain or retail store with blanket ownership for the sake of brand recognition and individual franchise ownership for the sake of better commerce). Essentially, I advocate a full anti-trust exemption that would avoid these lawsuits and should lead to more effective negotiations with labor unions. The entire discussion of the collective bargaining agreement will now be mired in this lawsuit. In essence, I believe a bargaining chip that could be used to expedite talks is now locked up in litigation. I could be ill-informed, but this seems like a major blow to the likelihood of a 2011/12 NFL season, which, in turn, is a major blow to my social calendar .