Wednesday, October 7, 2026
  • -
    days
  • -
    hours
  • -
    minutes
  • -
    seconds
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)

Want more from Front Office Sports
in your search results?

Add Front Office Sports on Google

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.

Download the FOS App

The business of sports, in your pocket.

QR code to download the app

Scan the QR code to get the app now.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Kenny Albert Fox Sports
First at FOS

Kenny Albert’s Last-Minute NLDS Fill-In Came Mid-Colonoscopy Prep

Albert filled in for Joe Davis, who had lost his voice.
Oct 4, 2026; Los Angeles, California, USA; Atlanta Braves pitcher Didier Fuentes (72) throws during the sixth inning against the Los Angeles Dodgers in game two of the NLDS for the 2026 MLB Playoffs at Uniqlo Field at Dodger Stadium.

MLB Division Series Extends Postseason Ratings Streak

Fox Sports and TNT Sports saw initial viewership lifts in the Division Series.

Jimmy Rollins: MLB Analytics Gurus Undervalue Team Chemistry

“I went to the college of MLB. Where’d you go?”
First at FOS

Yankee Stadium Quietly Suffered a Summer Peanut Shortage

The Yankees mysteriously ran out of peanuts this summer.
podcast thumbnail mobile
Front Office Sports Today

10/7/26 – EuroLeague Rejects NBA, LeBron’s Helicopter Sparks Backlash, $12M Super Bowl Ads

0:00

Featured Today

Oct 3, 2026; Starkville, Mississippi, USA; Alabama Crimson Tide head coach Kalen DeBoer waits to run onto the field prior to the game against the Mississippi State Bulldogs at Davis Wade Stadium at Scott Field. Mandatory Credit: Petre Thomas-Imagn Images

Who Is Alabama Football in Year 3 Under Kalen DeBoer?

The No. 6 Crimson Tide host No. 2 Georgia on Saturday.
Cubs behind the scenes
October 6, 2026

Hollywood and TikTok: Sports Media’s New ‘Blueprint’

Teams and leagues are pouring money into the quest for fans.
October 2, 2026

How the Baseball Cap Became a ‘Behemoth’

The hat has become essential for athletes, fans, and the sports-agnostic.
Morishita-Sato-homerun-celebration-at-Meiji-Jingu-Baseball-Staidum-2025
September 28, 2026

Japanese Baseball Is Fighting Back Against MLB Talent Drain

Nippon Professional Baseball is reimagining how to be a global juggernaut.
Aug 9, 2026; Bedminster, New Jersey, USA; President Donald Trump walks out of the clubhouse during the final round of the LIV Golf New York tournament at Trump National Bedminster.
September 25, 2026

Trump’s Year of Sports Gets Busier With CFB, Presidents Cup

The impact of Trump’s attendance varies across each sporting event.

WPBL Records Case Alive Despite Board Member’s Firing

The league’s CEO tried to end the board member’s case by firing her.
Polymarket logo appears in this illustration taken April 22, 2026.
September 24, 2026

New York Takes Aim at Polymarket With $4.6B Suit

“Our gambling laws exist to protect New Yorkers.”
Mar 16, 2026; Inglewood, California, USA; LA Clippers owner Steve Ballmer reacts against the San Antonio Spurs in the first half at Intuit Dome. Mandatory Credit: Kirby Lee-Imagn Images
Exclusive
October 2, 2026

Ballmer Drops Lawyer Who Called NBA Probe a ‘Witch Hunt’

O’Melveny & Myers had been representing Ballmer in multiple matters.
Sponsored

Beyond the Scorecard: How Dow Is Putting Purpose at the Center of Women’s Golf

Discover how Dow and the LPGA are building a partnership with lasting impact.
September 17, 2026

Mark Walter and His Insurance Empire Face New Class Action Suit

An annuity holder sued the owner of the Dodgers and his companies.
Mar 21, 2026; Dallas, Texas, USA; LA Clippers forward Kawhi Leonard (2) looks on during the game between the Mavericks and the Clippers at American Airlines Center. Mandatory Credit: Jerome Miron-Imagn Images
September 11, 2026

Kawhi Leonard Saga Enters Uncharted Territory With Federal Probe

News of the probe comes a week after the NBA announced its punishment.
Cortlandt defeats Pearl River 7-2 in ice hockey action at Bear Mountain Ice Rink in Stony Point on December 16, 2025.
September 11, 2026

Parents Sue Black Bear Sports Over Youth Hockey Hotel Tactics

The suit seeks at least $5 million in damages.
September 3, 2026

Enes Kanter Freedom Sues Chicago Sky, City of Chicago

Sky owner Michael Alter said Freedom “made himself into a threat.”