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U.S. Justice Dept jumps into professional baseball antitrust fray on attraction

Several minor league teams seek revival of case against Major League Baseball(Reuters) – The U.S. Justice Department on Monday asked a federal appeals court not to “extend” Major League Baseball’s longtime immunity from antitrust law to a dispute involving restrictions on the number of minor league teams that can be affiliated with professional clubs.The DOJ

U.S. Justice Dept jumps into professional baseball antitrust fray on attraction

  • A number of minor league groups search revival of case towards Main League Baseball

(Reuters) – The U.S. Justice Division on Monday requested a federal appeals court docket to not “prolong” Main League Baseball’s longtime immunity from antitrust legislation to a dispute involving restrictions on the variety of minor league groups that may be affiliated with skilled golf equipment.

The DOJ submitted a friend-of-the-court submitting to the 2nd U.S. Circuit Courtroom of Appeals that cautioned towards permitting MLB to wield its antitrust defend within the case pending on the New York-based court docket.

The U.S. Supreme Courtroom in 1922 crafted the exemption, saying exhibitions of baseball video games have been “purely state affairs” past the scope of antitrust legislation. Courts ever since have grappled with authorized challenges looking for to overturn it, or reduce its attain.

“In distinction to different antitrust exemptions, the Federal Baseball exemption was not created to reconcile competing authorized authorities or substantive coverage targets,” DOJ legal professionals stated of their temporary.

They pointed to different carve-outs in competitors legislation for labor and different issues.

A lawyer for Main League Baseball at Sullivan & Cromwell on Tuesday didn’t instantly reply to a message looking for remark. The league additionally didn’t instantly reply to an identical message.

The case was filed in 2021 in Manhattan federal court docket by a number of minor league golf equipment that misplaced their affiliation with large league groups, together with the Houston Astros, after MLB crafted a brand new skilled growth league.

That transfer eradicated the variety of minor league associates from 160 to 120.

Attorneys for the minor league golf equipment are seeking to revive their lawsuit that alleged professional baseball abused its energy within the reshuffling. Attorneys for the minor league groups have referred to as the MLB exemption a “get-out-of-antitrust-jail-free card.”

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An lawyer for the minor league golf equipment at Weil, Gotshal & Manges on Tuesday didn’t instantly reply to a message looking for remark. The golf equipment have requested the 2nd Circuit to lend its voice in urging the U.S. Supreme Courtroom to finish the exemption.

The Supreme Courtroom in 2015 rejected a problem to the MLB antitrust exemption in a dispute over San Jose’s curiosity in changing into the house of the Oakland Athletics.

The DOJ’s submitting stated skilled sports activities and antitrust legal guidelines have coexisted in varied methods over time. The DOJ pointed to a 2010 Supreme Courtroom case that stated sports activities “groups that have to cooperate should not trapped by antitrust legislation.”

“Merely put, the appliance of antitrust legislation to skilled sports activities has confirmed workable,” DOJ lawyer Matthew Mandelberg advised 2nd Circuit.

The case is Nostalgic Companions LLC, et al v. The Workplace of the Commissioner of Baseball, 2nd U.S. Circuit Courtroom of Appeals, No. 22-2859.

For plaintiffs: David Lender and Gregory Silbert of Weil, Gotshal & Manges

For defendant: Jeffrey Wall of Sullivan & Cromwell

Learn extra:

Law firm Weil Gotshal takes second swing at Major League Baseball’s antitrust shield

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Our Requirements: The Thomson Reuters Trust Principles.

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