MLB Urges U.S. Supreme Court to Deny San Jose Appeal
Overshadowed by last week’s series of momentous decisions by the U.S. Supreme Court, Major League Baseball recently filed a brief with the Court urging it to reject an appeal by the city of San Jose, California in the on-going dispute over the future home of the Oakland Athletics. As I noted at the time San Jose filed its appeal back in April, the city is hoping to challenge MLB’s refusal to approve the proposed relocation of the A’s to the city in court under the Sherman Antitrust Act.
Over the last two years, however, both the trial court and court of appeals have dismissed San Jose’s suit in light of professional baseball’s nearly century-old antitrust exemption. The city is now asking the Supreme Court to take its appeal and overturn the controversial doctrine in order to hold MLB accountable under the Sherman Act, like all of the other major U.S. professional sports leagues.
As one might expect, MLB’s brief instead argues that San Jose’s appeal should be rejected for several reasons. In particular, MLB devotes much of the first half of its brief to the contention that San Jose lacks standing to sue — a requirement in which the plaintiff must show that it has a personal stake in the outcome of an actual legal case or controversy (as opposed to a hypothetical, future dispute) — and therefore can’t sustain its case against the league.
MLB challenges San Jose’s standing on several grounds. The primary basis of MLB’s attack, however, focuses on a recent California state court decision holding that an option agreement between the city and the A’s for the land on which a new stadium is to be built is invalid under various state and municipal laws. Specifically, the California court determined that San Jose had illegally transferred the land to a governmental authority in an attempt to circumvent laws requiring that a public referendum be held to approve the use of any tax dollars to build a sports facility.


