Ninth Circuit Court Leans Toward MLB In Dispute Over Antitrust Exemption
A three-judge panel of the U.S. Court of Appeals for the Ninth Circuit heard arguments today on the existence and scope of Major League Baseball’s exemption from federal antitrust law. The arguments arose in the city of San Jose’s federal antitrust lawsuit against MLB over the league’s failure to allow the Oakland Athletics to build a new ballpark in, and move to, San Jose.
San Jose sued MLB last summer claiming that the league’s rules creating exclusive operating territories for teams — and requiring a three-fourths vote of owners for an existing team to move into another team’s territory — violate federal antitrust law. Upon MLB’s motion, the federal district court in San Jose dismissed the city’s claims on the grounds that MLB enjoys an exemption to federal antitrust law dating to the U.S. Supreme Court’s 1922 decision in the Federal Baseball Club case. That decision was based on a view that baseball was a game, and not a business, and thus not subject to antirust law.