Saturday December 9, 2023
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)
Linkedin
Copy Link
Link Copied
Link Copied

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
Copy Link
Link Copied
Link Copied

What to Read

Ohtani Signs Record $700M Contract With Dodgers

Two-way phenom sets new record for U.S. team sports.

Waiting Game: MLB Teams on Hold As Shohei Ohtani’s Big Decision Looms

Delay in completing record-setting deal creating a freeze across league.
Oakland Athletics center fielder Esteury Ruiz (1) tosses the ball to left fielder Brett Rooker (25) after making an out against the Atlanta Braves during the ninth inning at Oakland-Alameda County Coliseum.

Where Will the A’s Play After Next Year? It’s Getting Complicated

Roster development, RSN money further cloud an already-complex decision.
JMU football has been spending like a Group of 5 team for years. Now it will play its first bowl game.

James Madison, the FCS Team That Spent Like an FBS Team To Become One

The Dukes have been spending like a Sun Belt program for years.
podcast thumbnail mobile
Front Office Sports Today

Golf World in Chaos After Jon Rahm Joins LIV

0:00
0:00

Featured Today

The College Football Playoff is considering rotating TV networks for the national championship game.

CFP Considers Super Bowl-Like Rotation For National Championship Game

Multiple networks could share rights to the championship game, sources told FOS.
Brett Favre
November 27, 2023

Favre Welfare Case Hold-Up? “AG’s Office Has Not Expressed Interest In Pursuing”

The DOJ interviewed Brett Favre in early 2020.
The future of the Pac-12 rests on a court decision.
November 24, 2023

The Pac-12 Plays Its Final Regular-Season Game. Then A Court Decides Its Fate.

The conference’s future rests with a court decision.
Lane Kiffin
November 9, 2023

Ole Miss, Lane Kiffin Lawyers Argue for Dismissal of Player Lawsuit

FOS obtained audio of Lane Kiffin’s interaction with the player behind lawsuit.

Careers

Powered By

Careers in Sports

Looking for a new job? Check out these featured listings and search for openings all over the world.
FanDuel
Multiple Locations
Adidas
Multiple Locations
Creative Artists Agency
Multiple Locations
Lane Kiffin

Football Player Suing Ole Miss, Lane Kiffin Releases Text Messages

DeSanto Rollins sued Ole Miss, Kiffin in September.
Lane Kiffin
November 21, 2023

Ole Miss Player Alleges Lane Kiffin ‘Intended to Harm’ Him in Latest Filing

Ole Miss and Kiffin filed a motion to dismiss the lawsuit earlier this month.
Deadspin
December 1, 2023

Coverage of a Fan’s Chiefs Getup Sparks Outrage. Legal Fallout? Not So Fast

Deadspin has faced criticism after Monday story on race.
Sponsored

NHL’s Chris Foster on Amplifying Content Distribution With Automation

Learn how the NHL is using WSC Sports to increase fan engagement.
Baltimore Ravens offensive tackle Michael Oher on the bench against the Houston Texans in the fourth quarter at Reliant Stadium. The Texans defeated the Ravens 43-13.
November 10, 2023

Tuohy Family Paid Michael Oher Over $138K For ‘The Blind Side’

It contradicts Oher’s original claims that he was not compensated.
Lane Kiffin
November 10, 2023

Judge Issues Stay in Lawsuit Filed Against Ole Miss, Lane Kiffin

Pause comes after Ole Miss, Kiffin file a motion to dismiss.
Detailed view of the SRR initials on the Nike Epic React flyknit shoes of Sanya Richards-Ross during the 125th Penn Relays at Franklin Field.
November 8, 2023

Nike Sues New Balance, Skechers Over Flyknit Technology

Nike has previously sued Adidas, Puma, and Lululemon for the same infringement.
Former NFL player Tom Brady on the field before the game between the Dallas Cowboys and the Las Vegas Raiders at AT&T Stadium.
November 7, 2023

Athlete FTX Endorsers Face Uphill Battle After Bankman-Fried Conviction

Tom Brady and Shaquille O’Neal are among the celebrities being sued.