Sports_Law___Powe___Spring_2005

Sports_Law___Powe___Spring_2005 - Sports Law, Scott Powe,...

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Sports Law, Scott Powe, Spring ‘05: _________________________________________ I. INTRODUCTION : A. Baseball : 1. The National Agreement : 1903, created the structure of MLB. Set up 2 leagues with territorial exclusivity. Cities with competing teams could keep them both. 2. The Reserve Clause : team had a right to reserve the players on their team (no other team could touch them). 1914 Federal League basically purchased by MLB w/ the exception of the Baltimore Orioles. Sued on antitrust. o Oliver Wendell Holmes ruled baseball not subject to fed antitrust laws (b/c no link to commerce) . o No competition for MLB. Black Sox Scandal 1919. MLB appointed a commissioner (Kennisaw Mountain Landis was the federal judge that first gave them the power over antitrust). Landis was given unlimited authority: used it to ban all of the Black Sox that knew about throwing the game for life. o Lanidis banned gambling, but kept MLB white. o Strong Commissioner in MLB still today. 1953 structure of MLB changed: 3 teams moved (KC, Milwaukee, Baltimore (Braves)) No real moving since the 1960’s, only expansion (last in ’71 ‘til Washington DC Nationals in ‘05). 3. Franchise locations: MLB has franchise stability b/c the Commissioner can say yes or no to moving the franchise. Last baseball team moved in 1971. 4. Commissioners: a. Collective bargaining agreements give them their power; b. most leagues can do business with X% of owners agreeing. c. Idea of a Commissioner is to have that one person who cares about the “best interest of the sport.” i. Owners & players have other interests at stake (financial & fraternal cache); 1. owners can lose money yearly & still come out because of appreciation at transfer (due to cache of owning a franchise) ii. Idea dates back 80 yrs to Black Sox World Series scandal of 1919. 1. White Sox threw the series to the Reds a. Sox owner Charlie Comisky knew very soon after that his players had cheated, but he did nothing iii. Kennisaw Mountain Landis, former Federal Judge (38 yrs old) 1. Baseball already wanted him as its first commissioner because he had been perceptive enough in 1 st antitrust case against pro sports to have held baseball exempt from antitrust (Reserve clause? & exclusive leagues? contexts). a. Lured him away from bench at big sum of $50k/yr. b. After being hired, he set up a zero tolerance on gambling/cheating policy; suspending 8 players for life (“Eight Men Out”) i. This did clean up the game, ii. and he is the image that everyone has of a commissioner because he was seen as someone 1.
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This note was uploaded on 08/28/2008 for the course LAW 111 taught by Professor Bracha during the Spring '08 term at University of Texas at Austin.

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Sports_Law___Powe___Spring_2005 - Sports Law, Scott Powe,...

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