first time, that baseball’s exemption was not valid for other team sportsØEssentials of Sports Law, pg. 462
23 Chapter 10: Antitrust LawESSENTIALSOF SPORTS LAWAntitrust and Professional SportsØFlood was traded to Philadelphia from St. Louis and appealed to the MLB Commissioner (Kuhn) to reject the trade; the court cited Federal Baseball as precedent and ruled against Flood ØDecision affirmed that Major League Baseball is the only professional sport with an antitrust exemptionØEssentials of Sports Law, pg. 487
24 Chapter 10: Antitrust LawESSENTIALSOF SPORTS LAWAntitrust and Professional SportsØPlaintiff proved that NFL player restrictions (the draft, the “reserve clause”, and the “option clause”) were restraints of trade. Øthe NFL modified its draft to be less restrictive as a resultØEssentials of Sports Law, pg. 463
25 Chapter 10: Antitrust LawESSENTIALSOF SPORTS LAWAntitrust and Professional SportsØPlaintiffs brought a class action suit to challenge the draft, reserve system, and compensation practicesØCourt agreed and found per se violations of the Sherman Act ØEssentials of Sports Law, pg. 465
26 Chapter 10: Antitrust LawESSENTIALSOF SPORTS LAWAntitrust and Professional SportsØMackey was the president of the NFLPAØPlaintiff challenged the “Rozelle Rule” (compensation by Commissioner for free agents) on antitrust grounds and wonØNFLPA accordingly negotiated a new CBA that replaced the Rozelle Rule with the “Right of First Refusal/Compensation System” ØEssentials of Sports Law, pg. 491
27 Chapter 10: Antitrust LawESSENTIALSOF SPORTS LAWAntitrust and Professional Sports1.) The restraint on trade must primarily affect only the parties to the Collective Bargaining Agreement2.) The issue must concern a