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Antitrust Exemptions
One of the first national laws against trusts and monopolies was the Sherman Antitrust Act of 1886, which applies to all businesses engaged in interstate or international commerce. Federal law and the courts have defined commerce very broadly, as the "giving of essentially anything in return for barter or money" unless a specific exemption is granted (ABA, p2007, p. 7). Up to the 1970s and 1980s, many industries had such exemptions, including shipping, trucking, airlines, and telephones, on the grounds that excessive competition was destructive and destabilizing to the economy or that foreign cartels had an unfair advantage over American industries. According to the Clayton Act and Federal Trade Commission Act of 1914, and the National Labor Relations Act of 1935, labor unions are specifically exempt from prosecution on antitrust grounds. Moreover, the Supreme Court has granted them non-statutory exemptions in the Jewel Tea and Pennington cases of 1965. Unions cannot be prosecuted on antitrust grounds when negotiating...
65). On the whole, non-statutory labor exemptions have led to "complex legal issues that courts have wrestled with for decades with little success," especially in professional sports (Wise and Meyer, p. 63).
Professional sports associations used the antitrust exemption for decades to keep on monopoly on their players and prevent rival organizations from forming. According to the Rozelle Rule in professional football, for example, even a team that signed a free agent had to pay cash compensation or agree to trade other players as replacements (Wong, 2010, p. 491). In the Mackey decision of 1976, the 8th Circuit Court ruled on the lawsuit by free agents that led to the abolition of the Rozelle Rule. Professional baseball had a complete exemption from antitrust laws dating back to a 1922 Supreme Court decision, on the grounds that…
REFERENCES
Federal Statutory Exemptions from Antitrust Law (2007). American Bar Association, Section on Antitrust Law, Monograph 24.
Spengler, J.D. et al. (2009). Introduction to Sports Law. Human Kinetics.
Wise, A.M. And B.S. Meyer (1997). International Sports Law and Business, Volume 1. Kluwer Law International.
Wong, G.M. (2010). Essentials of Sports Law, 4th Edition. ABC-CLIO.
New York Yankees, 1953; Picher, 1997; as cited by Scremin, 2005). It is interesting to note that: "with the exception of baseball, to some extent, all other major professional sports have had to adapt their rules and policies to comply with antitrust law." (Scremin, 2005) The principle was again tried in the case Flood v. Kuhn in 1972 but the U.S. Supreme Court reaffirmed the exemption. ANALYSIS According to the U.S.
.. are not to be distinguished by any judgment regarding the wisdom or unwisdom, the rightness or wrongness, the selfishness or unselfishness of the end to which the particular union activities are the means.' The law, however, still bites on situations where trade unions and groups of employers conspire together to suppress or eliminate competition. In other words, businessmen are not entitled to take advantage of the relative immunity of labor
Sports and Anti-Trust Is the National Football League's Requirements to Enter the Draft a Violation of Antitrust Law? If so why? Why does the NFL think it is not a violation? Defining the AntiTrusts Legislation Sherman AntiTrust Legislation Clayton Antitrust amendment Presidential support The Maurice Clarett Case The NFL's position, The effect is could have on the game. Judge Scheinin's decision Sherman Antitrust Act Clayton Act Basis of Judge Shira Scheinin's Decision Other cases from other Professional sports leagues, like the NBA, that are
Secondly, the report alluded to by CSC asserts that in "gender symmetric" sports there are "far more scholarships available for women (32,656) than for men (20,206)." The third bullet point in the CSC press release points out that men's volleyball is the "by far the most difficult" scholarship at the Division I level; there are reportedly 489 high school athletes for every full ride NCAA scholarship. The "underlying" data that CSC
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American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), a federation of autonomous labor unions in the United States, Canada, Mexico, Panama, and U.S. dependencies, was formed in 1955 by the merger of the American Federation of Labor (AFL) and the Congress of Industrial Organizations (CIO). Heavily involved in politics, the AFL-CIO's primary function is to lobby on behalf of organized labor and mediate disputes between its member