Anti-Trust Law

non-statutory labor exemption

-Judicial exemption that provides that when employers and employees have bargained in good faith, one party cannot be sued by the other party claiming violations of the antitrust laws -remains in fact even after collective bargaining agreement ends.

player drafts

-each of the major sports leagues uses an annual draft to select and allocate players to its member teams. -each league also sets out specific requirements related to the age of those who can be drafted, their completion or progress in high school or university, and their eligibility to be drafted by a member team. -past courts have called aspects of the draft into question.

league structure

-if sport league is a single entity, then its decisions do not constitue section 1 violations (since it applies to two or more entities) -if a group of owners or employers then section 1 applies

curt flood act

-modifies baseballs antitrust exemption -allows baseball players to sue MLB if they believe that some condition of their employment may violate the antiturst laws

individual performer sports

-pro boxing, tennis, golf, bowling, and auto racing have all been found to be businesses engaged in interstate commerce -eligibility restraints have not been found to violate the antitrust laws if the restrictions promote the quality of competition, ensure uniformity of the rules, and assist in the orderly scheduling of tournaments and other events.

purposes of antitrust law

-promote competition and efficiency in the marketplace -protect consumers from the growing monopoly power of big business -maintain a high level of competition among producers so that consumers are able to get products at affordable and reasonable prices

salary caps

-set a limit on the amount of money a team can spend on player salaries -set either as per-player limits or as a total limit that a team can pay for its players

to prove a violation section 1 sherman act

1. must show that there is an agreement between two parties 2. must show that the parties conduct taken under the agreement unreasonable restrains trade because they are anticompetitive 3. activity must affect interstate commerce (i.e., commerce that takes place between two or more states)

NFLs Rozelle rule

NFL rule required a team signing a veteran free agent to provide compensation to the team that was losing the player. struck down as antitrust in Mackey v. NFL

monopoly

an org that possesses exclusive control over the means of selling and producing a product

player restraints

assuming leagues are not single entities, then the following labor issues have antitrust implications 1.player drafts 2. restrictions on free agency 3. salary caps

Sherman Antitrust act section 1

every contract, combination in the form of trust or otherwise, or conspiracy in restraint of trade or commerce among the several states or foreign nations is declared to be illegal

sherman antitrust act section 2

every person who shall monopolize, or attempt to monopolize or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several states, or with foreign nations, shall be deemed guilty of a felony

antitrust exemptions

findings by a court or provisions of statutes that exempt a party from review under a particular regulation or statute. exemptions allow the party to avoid a lawsuit as a result of its actions that otherwise could be found to have violated the regulation or statute.

baseballs reserve clause

restriction on free agency. a clause used to be in every professional baseball players contract starting that if the player did not automatically sign a new contract with the team for the next season, all of the provisions of his present contract would be automatically renewed. -the player remained the property of his team.

Broadcasting exemption

sports broadcasting act. -Enables clubs to put their separate rights together into one package so that the league can sell the package to one purchaser, such as a TV network, in an effort to protect their home game ticket sales and to allow clubs to share television revenues. -Allows professional hockey, football, baseball, and basketball to pool and sell their rights in sponsored telecasts of games without the fear of being sued for creating an agreement in restraint of trade. NCAA is not a party.

free agency

the period of time when a pro athlete is not under contract to any particular team and so is able to freely negotiate with any team

rule of reason

violation of section 1. -rule used by courts in antitrust cases that applies when the conduct is not inherently anticompetitive; under this rule, a court focuses on whether the challenged conduct unreasonably restrains trade - a balancing test of pro-competitive and anti-competitive effects of the action

per se rule

violation of section 1. conduct that is inherently anticompetitive, such as price fixing and group boycotts, and so automatically violates the Sherman Antitrust act.