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Pros And Cons Of Antitrust Exemption

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Modern Viewpoints on the Antitrust Exemption Though Major League Baseball’s antitrust exemption has held true for over a century, the evolution of the game into a broader, more nationwide entity has largely changed the viewpoints regarding the exemption and its effects on the game. With regards to many aspects of the game including salary caps, relocation, broadcasting, and the Minor League affiliates, there are arguments for and against an exemption with regards to these elements. Major League Baseball is the only sports league that doesn’t implement a salary cap (Mann, 2012). Because of this, they balance it out with revenue sharing and luxury taxes for the richest teams (Mann, 2012). Haupert (2002) asserted that although Major League Baseball may have a monetary issue regarding the rich teams winning too often, it cannot be resolved with revenue sharing nor salary caps. …show more content…

Office of the Commissioner of Baseball. The current exemption essentially allows Major League Baseball to relocate a franchise or deny a franchise relocation (Mann, 2012). If the exemption were removed and the decision of relocation were placed on the consumers, then the right decision would most likely be made especially if the current city did not have as much interest as another candidate (Zimbalist, 2004). Though it seems as if Major League Baseball would lose their rights to relocation upon a removal of antitrust exemption, there is actually a good chance they would withstand a “rule of reason challenge,” which is a detailed, judicial analysis of whether or not the practice promotes or hurts consumer rights and competition (Mann,

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