San Jose Sues MLB To Get A’s, Charges Teams Conspire To Maintain Monopoly Power In Their Markets
After months of threats and saber-rattling, the City of San Jose sued Major League Baseball and its 30 constituent teams on Tuesday over MLB’s refusal to allow the Oakland A’s to move to San Jose.
The lawsuit, filed in federal district court in San Jose, is a direct challenge to MLB’s federal antitrust exemption. San Jose claims that MLB places unreasonable restrictions on competition by giving each team its own exclusive territory (or in the case of New York, Los Angeles, and Chicago, shared territory) and veto power to prevent any other team from moving into that territory. As I explained in this FanGraphs post last September, under MLB rules, a team can move into the territory of another team only when the following conditions are met: a vote of three-fourths of the owners approving the move; the two ballparks are located at least five miles apart; the move results in no more than two teams in a single territory; and the team moving compensates the team already in the territory.
In addition to the federal antitrust claims, San Jose also charged MLB with violations of California antitrust law and with state law claims for interference with prospective economic advantage based on San Jose’s agreement to allow the A’s to buy certain parcels of city land, if the A’s plan to move is approved by the league.
You can read the lawsuit in its entirety here.
San Jose is represented by Joe Cotchett and his law firm, Cotchett, Pitre & McCarthy. Cotchett is a nationally well-known and well-regarded attorney with experience in antitrust cases. In fact, Cotchett represented the National Football League and the (former) Los Angeles Rams when the Oakland Raiders sued the league for antitrust violations in 1982 when the league voted against allowing the Raiders to move to Los Angeles. The Raiders won that lawsuit, and paved the way for other professional sports franchises to move from city to city more easily.
Except, that is, in baseball.