Major League Baseball avoided a possible U.S. Supreme Court challenge to its antitrust exemption when it settled a federal lawsuit and two in New York State court filed by minor league teams who lost their big league affiliations. James W. Quinn, a lawyer for the teams who sued, said Thursday that a settlement had been reached in all three cases.
NEW YORK — Major League Baseball avoided a possible U.S. Supreme Court challenge to its antitrust exemption when it settled a federal lawsuit and two in New York State court filed by minor league teams who lost their big league affiliations.
in December 2021 in U.S. District Court in Manhattan, alleging a violation of the Sherman Antitrust Act caused by “a horizontal agreement between competitors that has artificially reduced and capped output in the market for MiLB teams affiliated with MLB clubs.” The federal suit was dismissed in U.S. District Court in Manhattan because of the antitrust exemption and that decision was affirmed by the 2nd U.S. Circuit Court of Appeals. Lawyers for the minor league teams then asked the U.S. Supreme Court to review the decision in an attempt to overturn baseball’s antitrust exemption, created by a 1922 Supreme Court ruling. The Supreme Court had not yet considered whether to accept the case.
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