Learn About the Law
Get help with your legal needs
FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.
The judgments in these cases are affirmed on the authority of Federal Baseball Club of Baltimore v. National League of Professional Baseball Clubs, 259 U.S. 200 , so far as that decision determines that Congress had no intention of including the business of baseball within the scope of the federal antitrust laws. Pp. 356-357.
200 F.2d 198, 202 F.2d 413, 428, affirmed.
[ Footnote * ] Together with No. 23, Kowalski v. Chandler, Commissioner of Baseball, et al., argued October 13-14, 1953, and No. 25, Corbett et al. v. Chandler, Commissioner of Baseball, et al., argued October 14, 1953, both on certiorari to the United States Court of Appeals for the Sixth Circuit.
Howard C. Parke argued the cause for petitioner in No. 18. With him on the brief was Gene M. Harris.
Frederic A. Johnson argued the cause for petitioner in No. 23 and Seymour Martinson argued the cause for petitioners in No. 25. With them on the briefs were Maurice H. Koodish and Edward Martinson.
Norman S. Sterry argued the cause and filed a brief for respondents in No. 18.
Raymond T. Jackson argued the cause for respondents in Nos. 23 and 25. With him on the briefs were Benjamin F. Fiery and Louis F. Carroll.
Thomas Reed Powell filed a brief for the Boston American League Base Ball Company in No. 18, as amicus curiae, urging affirmance.
PER CURIAM.
In Federal Baseball Club of Baltimore v. National League of Professional Baseball Clubs, 259 U.S. 200 [346 U.S. 356, 357] (1922), this Court held that the business of providing public baseball games for profit between clubs of professional baseball players was not within the scope of the federal antitrust laws. Congress has had the ruling under consideration but has not seen fit to bring such business under these laws by legislation having prospective effect. The business has thus been left for thirty years to develop, on the understanding that it was not subject to existing antitrust legislation. The present cases ask us to overrule the prior decision and, with retrospective effect, hold the legislation applicable. We think that if there are evils in this field which now warrant application to it of the antitrust laws it should be by legislation. Without re-examination of the underlying issues, the judgments below are affirmed on the authority of Federal Baseball Club of Baltimore v. National League of Professional Baseball Clubs, supra, so far as that decision determines that Congress had no intention of including the business of baseball within the scope of the federal antitrust laws.
Whatever may have been the situation when the Federal Baseball Club case 1 was decided in 1922, I am not able to join today's decision which, in effect, announces that organized baseball, in 1953, still is not engaged in interstate trade or commerce. In the light of organized baseball's well-known and widely distributed capital investments used in conducting competitions between teams constantly traveling between states, its receipts and expenditures of large sums transmitted between states, its numerous purchases of materials in interstate commerce, [346 U.S. 356, 358] the attendance at its local exhibitions of large audiences often traveling across state lines, its radio and television activities which expand its audiences beyond state lines, its sponsorship of interstate advertising, and its highly organized "farm system" of minor league baseball clubs, coupled with restrictive contracts and understandings between individuals and among clubs or leagues playing for profit throughout the United States, and even in Canada, Mexico and Cuba, it is a contradiction in terms to say that the defendants in the cases before us are not now engaged in interstate trade or commerce as those terms are used in the Constitution of the United States and in the Sherman Act. 2
In 1952 the Subcommittee on Study of Monopoly Power, of the House of Representatives Committee on the Judiciary, after extended hearings, issued a report dealing with organized baseball in relation to the Sherman Act. In that report it said:
That the Court realized that the then incidental interstate features of organized baseball might rise to a magnitude that would compel recognition of them independently is indicated by the statement made in 1923 by Mr. Justice Holmes, the writer of the Court's opinion in the Federal Baseball Club case. In 1923, in considering a bill in equity alleging a violation of the Sherman Act by parties presenting local exhibitions on an interstate vaudeville circuit, the Court held that the bill should be considered on its merits and, in writing for the Court, [346 U.S. 356, 361] Mr. Justice Holmes said "The bill was brought before the decision of the Base Ball Club Case, and it may be that what in general is incidental, in some instances may rise to a magnitude that requires it to be considered independently." 8
The 1952 report of the Congressional Subcommittee previously mentioned also said:
Conceding the major asset which baseball is to our Nation, the high place it enjoys in the hearts of our people and the possible justification of special treatment for organized sports which are engaged in interstate trade or commerce, the authorization of such treatment is a matter within the discretion of Congress. 11 Congress, however, has enacted no express exemption of organized baseball from the Sherman Act, and no court has demonstrated the existence of an implied exemption from that Act of any sport that is so highly organized as to amount to an interstate monopoly or which restrains interstate trade or commerce. In the absence of such an exemption, the present [346 U.S. 356, 365] popularity of organized baseball increases, rather than diminishes, the importance of its compliance with standards of reasonableness comparable with those now required by law of interstate trade or commerce. It is interstate trade or commerce and, as such, it is subject to the Sherman Act until exempted. Accordingly, I would reverse the judgments in the instant cases and remand the causes to the respective District Courts for a consideration of the merits of the alleged violations of the Sherman Act.
[ Footnote 2 ] Compare Paul v. Virginia, 8 Wall. 168, and Hooper v. California, 155 U.S. 648 , with United States v. South-Eastern Underwriters Assn., 322 U.S. 533 , and Lorain Journal Co. v. United States, 342 U.S. 143 . See also, Times-Picayune Publishing Co. v. United States, 345 U.S. 594 ; United States v. National Assn. of Real Estate Boards, 339 U.S. 485 ; United States v. Crescent Amusement Co., 323 U.S. 173 ; American Medical Assn. v. United States, 317 U.S. 519 .
[ Footnote 3 ] H. R. Rep. No. 2002, 82d Cong., 2d Sess. 4, 5.
[ Footnote 4 ] National League v. Federal Baseball Club, 50 App. D.C. 165, 169, 269 F. 681, 685.
[ Footnote 5 ] 259 U.S., at 208 , 209.
[ Footnote 6 ] See brief for appellants in the Court of Appeals, pp. 45-67; brief for defendants in error in this Court, pp. 45-66.
[ Footnote 7 ] See brief for appellants in Court of Appeals, pp. 68-72; brief for defendants in error in this Court, pp. 66-72.
[ Footnote 8 ] Hart v. Keith Vaudeville Exchange, 262 U.S. 271, 274 , and see North American Co. v. S. E. C., 327 U.S. 686, 694 .
[ Footnote 9 ] In opposing approval of four exclusionary bills then pending, the Subcommittee did not take the stand that organized baseball and other comparable sports, although constituting interstate trade or commerce, already are exempt from the broad coverage of the Sherman Act. On the contrary, it said:
[ Footnote 10 ] "The reserve clause is popularly believed to be some provision in the player contract which gives to the club in organized baseball which first signs a player a continuing and exclusive right to his services. Commissioner Frick testified that this popular understanding was essentially correct. He pointed out, however, that the reserve clause is not merely a provision in the contract, but also incorporates a reticulated system of rules and regulations which enable, indeed require, the entire baseball organization to respect and enforce each club's exclusive and continuous right to the services of its players." H. R. Rep. No. 2002, 82d Cong., 2d Sess. 111. See also, Section VII, The Reserve Clause, id., at 111-139, and Gardella v. Chandler, 172 F.2d 402.
In No. 18 the following specific allegations appear and those in No. 23 are comparable:
[ Footnote 11 ] E. g., Congress has expressly exempted certain specific activities from the Sherman Act, as in 6 of the Clayton Act, 38 Stat. 731, 15 U.S.C. 17 (labor organizations), in the Capper-Volstead Act, 42 Stat. 388-389, 7 U.S.C. 291, 292 (farm cooperatives), and in the McCarran-Ferguson Act, 59 Stat. 34, 61 Stat. 448, 15 U.S.C. (Supp. V) 1013 (insurance). And see Apex Hosiery Co. v. Leader, 310 U.S. 469, 501 , 512. [346 U.S. 356, 366]
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes visit FindLaw's Learn About the Law.
Citation: 346 U.S. 356
Docket No: No. 18
Argued: October 13, 1953
Decided: November 09, 1953
Court: United States Supreme Court
Search our directory by legal issue
Enter information in one or both fields (Required)
Harness the power of our directory with your own profile. Select the button below to sign up.
FindLaw for Legal Professionals
Learn more about FindLaw’s newsletters, including our terms of use and privacy policy. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Get help with your legal needs
FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.
Search our directory by legal issue
Enter information in one or both fields (Required)