• Loading stock data...
Sunday, June 1, 2025
Law

Settlement Concludes Latest Challenge to MLB’s Antitrust Exemption

  • Two minor league teams sued MLB, the Astros, and the Tigers after MLB stripped the clubs of their MLB affiliations.
  • The trial was slated to begin on Nov. 13 before the settlement was reached.
(Photo: USAToday.com)

The long-running legal dispute between two minor league teams and Major League Baseball is officially over, as is another threat to MLB’s century-old federal antitrust exemption. 

The Tri-City ValleyCats and the Norwich Sea Unicorns — who were among 40 minor league clubs who lost their status as MLB affiliates in 2020 — agreed to a settlement in the case, according to a Tuesday court filing in a New York county court.

Terms of the settlement were not disclosed. 

After the joint stipulation that requested the proceedings to be “discontinued with prejudice,” 

Justice Barry R. Ostrager canceled all future hearings. The case, originally filed in March 2021, was slated to go to trial on Nov. 13. 

An MLB spokesperson declined comment when reached by Front Office Sports on Wednesday. 

Forty of 160 minor league clubs lost their MLB affiliations in 2020, and the ValleyCats and Sea Unicorns sought to challenge MLB’s antitrust exemption. 

“MLB’s intimidation tactics, which it used to pit MiLB teams against each other for the ‘privilege’ of not having their businesses destroyed, has gone on for years but was most vividly demonstrated by a May 2020 email in which Commissioner Rob Manfred emailed the ValleyCats’ owner condolences on the passing of his father, and then in the very same email, issued a veiled threat that any public statement made about MLB’s contraction efforts would be ‘Unwise,’” lawyers for the two teams wrote in the original complaint. 

The settlement comes after New York Attorney General Letitia James and 17 other attorneys general petitioned the U.S. Supreme Court to hear the two teams’ petition to the nation’s highest court. 

“Federal law cannot preempt historic state police power prerogatives absent an unmistakably clear Congressional command,” the attorneys general wrote in their amicus brief. “Antitrust enforcement is undisputedly a function of states’ historic police powers. But Congress never spoke at all—much less clearly and unmistakably—to federal preemption of state antitrust enforcement against the business of baseball.”

Beyond the Troy-based ValleyCats, the Auburn Doubledays, Batavia Muckdogs, and Staten Island Yankees were also among New York teams that lost their MLB affiliations. 

The Connecticut-based Sea Unicorns were an affiliate of the Detroit Tigers, and the ValleyCats were a Houston Astros affiliate. Both teams were defendants in the case along with MLB. 

The resolution of the case means that the Supreme Court challenge goes away as well. 

Over the years, there have been challenges to MLB’s broad antitrust exemption both in the court system and by legislators. Earlier this year, Rep. Barbara Lee (D-California) questioned the league’s antitrust exemption amid the Oakland A’s plan to relocate to Las Vegas. 

“MLB’s continued active encouragement of the A’s abandonment of Oakland and the East Bay runs counter to the rationale supporting MLB’s century-old exemption from federal antitrust law,” Lee wrote in a letter to Manfred.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Steve Cohen Taps USTA’s Lew Sherr to Reshape Mets Off Field

The MLB club hires a top executive from the U.S. Tennis Association.

Chiefs, Royals Stadium Plans Hit Political Wall As Both Parties Say No

Both Republicans and Democrats in Missouri oppose public funding for stadiums.
Oct 26, 2024; Los Angeles, California, USA; Los Angeles Dodgers designated hitter Shohei Ohtani (17) injures left shoulder whilte attempt to steal second base in the seventh inning against the New York Yankees during game two of the 2024 MLB World Series at Dodger Stadium.

Yankees-Dodgers Clash Draws TV Spotlight, Sky-High Prices

The teams’ lone regular-season series features three nationally aired games.

Former Seton Hall Baseball Player Sues Over Sexualized Hazing

The student says the coach knew about the hazing and failed to act.

Featured Today

PSG and the City of Paris Can Join European Soccer’s Elite

What a maiden Champions League title would mean for the French club.
May 30, 2025

How the Champions League Anthem Took on a Life of Its Own

The composer didn’t know he wrote a timeless hit three decades ago.
May 25, 2025

How Rolex Paved the Way for Luxury’s Love Affair With Tennis

“It’s almost impossible to think about tennis without thinking about Rolex.”
Mar 23, 2025; Miami, FL, USA; Alexandra Eala (PHI) reacts after winning a point against Madison Keys (USA)(not pictured) on day six of the Miami Open at Hard Rock Stadium.
May 24, 2025

Alex Eala Is Defying Her Country’s Odds to Make French Open History

The Philippines native has overcome a unique set of financial odds.
Mar 24, 2024; Los Angeles, California, USA; Detailed view of the basketball sneakers worn by Los Angeles Clippers guard Terance Mann (14) against the Philadelphia 76ers at Crypto.com Arena.

Skechers Sued Over Allegedly Sketchy Go-Private Deal

The footwear giant agreed to be acquired by 3G Capital for $9.4 billion.
May 28, 2025

Arizona Father-Son Duo Plead Guilty to $280 Million Sportsplex Fraud

Randy Miller and his son Chad conned multiple investment firms. 
Zion Williamson
May 30, 2025

Zion Williamson Accused of Rape and Abuse in Lawsuit

The woman says their relationship began when he was at Duke in 2018.
Sponsored

Game On: Portfolio Players Stories, Brought to You by E*TRADE from Morgan Stanley

In Episode 7 of Portfolio Players, go inside the boardroom with Avenue Capital CEO and former Milwaukee Bucks co-owner Marc Lasry on Giannis’s future, women’s sports, and upstart leagues like TGL and Unrivaled. 
Vince McMahon
May 28, 2025

Former WWE Exec Flips on Vince McMahon in Sex Abuse Lawsuit

Janel Grant and John Laurinaitis announced their settlement Wednesday.
Darin Ruf
May 23, 2025

Darin Ruf Sues Reds Over Career-Ending Knee Injury

Ruf played for five teams across nine major league seasons, hitting .239.
Indiana basketball's Adidas team shoe - January 5, 2025
May 22, 2025

Steve Madden Sues Adidas to Protect Its Own Use of Stripes

Adidas previously sued Steve Madden over trademark issues.
Tennis
May 21, 2025

ATP, WTA Ask Judge to Dismiss ‘Tennis Cartel’ Lawsuit 

The motions were filed late Tuesday and early Wednesday.