In Defense of Baseball's Antitrust Exemption

Grow, Nathaniel

doi:10.1111/j.1744-1714.2012.01132.x

American Business Law J

2012

DOI: 10.1111/j.1744-1714.2012.01132.x

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In Defense of Baseball's Antitrust Exemption

Nathaniel Grow

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Cited by 2 publications

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“…(National League of Professional Baseball Clubs v. petitive advantages of the bigger incumbents, for instance, by blocking MLB teams with smaller markets to relocate to bigger and more profitable markets (inter alia, Hamilton 1998;Mehra & Zuercher 2006;Mozes & Glicksman 2011). These severe restrictive effects are hardly outweighed by claimed benefits like financial contributions to minor leagues (Grow 2012), which supposedly should be possible with less restrictive practices as well.…”

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Four Cases in Sports Competition Policy: Baseball, Judo, Football, and Motor Racing

Budzinski

2017

SSRN Journal

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Practices and conducts in professional and even amateur sports can be subject to competition laws as soon as commercial activities are involved. From an economic perspective, this implies that both directly commercial activities like the sale of broadcasting/media rights and indirectly commercial activities like defining and enforcing the rules of the games can be hit by competition policy interventions. Setting and enforcing the rules of the game is an activity with commercial effects because it influences attractiveness and marketability of the sports in question. After discussing fundamental issues, this contributions reviews selected landmark cases in sports competition policy from an economic perspective. This includes the U.S. baseball antitrust exemption, access rules to Judo tournaments, sale systems of media rights in European football as well as a unique combination of long-run exclusivity contracts, skewed allocation of common revenues, and special influences on rule-setting by some competitors in Formula One motor racing. Eventually, the areas of state aid to football clubs and mergers in Danish football are sketched.

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Four Cases in Sports Competition Policy: Baseball, Judo, Football, and Motor Racing

Budzinski

2017

SSRN Journal

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Measuring Market Power in Professional Baseball, Basketball, Football, and Hockey

Healy

Tan

Orazem

2020

The American Economist

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Using Forbes magazine’s estimates of the current value and revenues of professional sports teams, we derive a long-run variant of the Lerner Index. We apply the strategy to professional teams in baseball, basketball, football, and hockey over the 2006–2019 period. All teams have positive and significant price-cost margins over the entire period. Analysis of variance shows that local market factors and past team performance have less impact on a team’s market power than do common league-wide effects. The strongest market power is in leagues with more aggressive revenue sharing policies. Price-cost margins are higher for professional teams in North American than for the most valuable European soccer teams, consistent with the stronger exemption from antitrust law in the United States and the weaker revenue sharing policies in Europe. JEL Classifications: L43, L13, L83

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In Defense of Baseball's Antitrust Exemption

Cited by 2 publications

References 23 publications

Four Cases in Sports Competition Policy: Baseball, Judo, Football, and Motor Racing

Four Cases in Sports Competition Policy: Baseball, Judo, Football, and Motor Racing

Measuring Market Power in Professional Baseball, Basketball, Football, and Hockey

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