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Major League Baseball has been a pillar of the American experience. Perhaps even too much so. Baseball has been a staple in American households since the early 20th century. And while great for continuity,  it’s caused MLB to become a bit of a monopoly. Major League Baseball right now stands exempt from any anti-competitive measures imposed by the government; and one Twitter user began to point out how this may have been counter-intuitive for the good of the game. Since 1922, Major League Baseball has been granted an exemption from competition provisions active in America but is it time for some upheaval?

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Sport grows with innovation. And what better to spur innovation than competition? But after the landmark ruling by the Supreme Court in Federal Baseball Club of Baltimore v. National League (1922), the Supreme Court ruled that antitrust laws did not apply to MLB.

In a unanimous decision, the court decided baseball was not interstate commerce. It was a state affair. The business of baseball took place within states, not between states. While teams had to travel between states to play each other, this was considered incidental and not a major part of business. Hence, anti-trust laws were said to have no application as the Acts for those laws were Federal and could not be applied presently.

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Is it harming baseball?

Tyler Matzek, of the Atlanta Braves, took to Twitter to point out that it may be this provision which is keeping baseball from reinventing itself and growing in popularity. Giving voice to his thoughts, he wrote about how players would love to play in alternate leagues but with MLB’s exemption from anti-trust laws, it made it hard for any leagues to start.

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Currently, the American League and the National League are the two major entities that comprise Major League Baseball. And while there was a competing enterprise that came up in the 1920s called the Federal League, it led an unsuccessful challenge to the monopoly of the established competitive leagues with the Supreme Court ruling in favor of the two and exempting them from anti-trust provisions.

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Matzek, made a point that other leagues across the country managed to stay fresh and competitive. Putting forth the example of the NFL, he wrote, “In order for the NFL to keep the best players from seeking greener grass in other leagues the NFL must provide for the players.” However, with no such rules applying to Major League Baseball players must comply with the league or leave the sport they love.

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Legal challenge to the MLB

The nature of sport is to make it as fun as possible for the fans; and with the current structure, Matzek said, it could be counter-intuitive for consumers too. Said Matzek, “when there is less competition in the market (baseball teams in city) then the owners can then spike ticket prices knowing the only place to be entertain by baseball is to pay they’re price.”

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And in a recent lawsuit, reportedly, the actions have been challenged. With MLB’s takeover of the minor leagues as well in 2020; the lawsuit has been filed naming commissioner Rob Manfred as a defendant.

The lawsuit, filed in Manhattan federal court claims MLB’s takeover and contraction is a “naked, horizontal agreement to cement MLB’s dominance over all professional baseball.”

The fans of the game certainly don’t seem unhappy as off yet, but could Matzek’s point hold some water? Let us know in the comments!

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