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ARTICLE · 19 JANUARY 2022

Minor League Teams Take A Swing At Baseball's Antitrust Exemption

A group of minor league baseball teams have filed suit in the U.S. District Court for the Southern District of New York in Manhattan against Major League Baseball in a pitch to end a nearly century-old antitrust exemption ...

United StatesAntitrust/Competition Law

Denver, Colo. (January 18, 2022) - A group of minor league baseball teams have filed suit in the U.S. District Court for the Southern District of New York in Manhattan against Major League Baseball (MLB) in a pitch to end a nearly century-old antitrust exemption first granted by the U.S. Supreme Court in 1922.

The Lawsuit

The suit is based on MLB's decision in 2019 to contract its minor league system from 160 teams to 120 teams. Charging that no other business in the U.S. would even consider such a "brazen horizontal agreement among competing businesses," the minor league plaintiffs allege that MLB and its clubs had no such qualms because of a judicially created "get out of jail free card," or antitrust exemption, first dealt to them by the Supreme Court in Fed. Baseball Club, Inc. v. Nat'l League of Prof'l Baseball Clubs, 259 U.S. 200 (1922) and subsequently reaffirmed in Toolson v. N.Y. Yankees, Inc., 346 U.S. 356, 356, 74 S. Ct. 78, 78 (1953) and Flood v. Kuhn,

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