Tuesday, June 27, 2017

The Business of Minor League Baseball: Antitrust Exemption May Be Wrong, But 9th Circuit is Right

Reuters reports that minor league baseball players lost a claim for artificially low" wages.  The court found, appropriately: "The employment contracts of minor league players relate to the business of providing public baseball games for profit between clubs of professional baseball players."

Samuel Kornhauser, the player's lawyer plan to ask the 9th Circuit to reconsider (probably en banc) or appeal to the U.S. Supreme Court. Kornhasuer, in an interview, stated: 

"Obviously, we think it's wrong, and that the 'business of baseball' is a lot different today than it was in 1922. There is no reason minor leaguers should not have the right to negotiate for a competitive wage."

Kornhauser is certainly correct that things have changed in the last 100 years, though I would argue that the justification for the antitrust exemption was just as unfounded in 1922 as it is today. The origin is the Federal Baseball decision, and it was wrong then, and it is wrong now.  But it is also the law of the land. The 1998 Curt Flood Act, as the court appropriately explains, "made clear [Congress intended] to maintain the baseball exemption for anything related to the employment of minor league players."

There is no question Congress can change the law, and there is no question Congress has not. This is one to be resolved via negotiation or legislation, issue, and not via the courts.  

http://lawprofessors.typepad.com/business_law/2017/06/the-business-of-minor-league-baseball-antitrust-exemption-may-be-wrong-but-9th-circuit-is-right.html

Current Affairs, Joshua P. Fershee, Legislation, Sports | Permalink

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