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Flood v. Kuhn
407 U.S. 258
SCOTUS
1972
Check Treatment

*1 KUHN v. FLOOD al. et 19, 1972 June 20, 197 2 Decided Argued March 71-32. No. Court, in which J., opinion Stew- delivered BlacKMüN, n I which Part joined,, in all but JJ.", and .RehNQUist, art C, J., con- filed a Burger, J., J., Burger, White, C. Joined. post, 286, and J., p. Douglas, post, p. 285. curring opinion, in which dissenting opinions, J., post, filed p. Marshall, part consideration J., no in BreNNAN, J., joined. Powell, took of the case. or decision petitioner. cause for Goldberg argued

Arthur J. Topkis. Jay H. briefs him on With Kuhn. respondent for the cause argued Paul A. Porter respondents Jr., cause Hoynes, argued'the F. Louis Professional League of National Feeney, President were brief them on the With Clubs, et al. Garner, H..Hadden, P. James Hughes, Alexander F. Mark Chapman. Daane, I. Jerome Warren opinion delivered Blackmun Justice Mr.

Court. *2 asked is Court years in the time third

For the reserve baseball’s professional to rule that specifically laws.1 federal antitrust reach of.the the is within system contracts into system, publicly introduced reserve 1 The 198, 202- Ewing, 42 F. Co. v. Metropolitan Exhibition 1887, see in uniformity player con of 1890), in the centers (CC SDNY him club that has player to the the tracts; of the confinement contract; and player’s the assignability contract; the the under .of unilaterally, annually renew the contract to ability the club of the salary Thus minimum. subject to a stated part: League provides in Major Rules 3 of the A. Rule morale., pro- to preserve To and “(a) UNIFORM CONTRACT. necessary competition, the similarity keen conditions to duce the of Major Leagues players in all and their the between contracts clubs Major by single prescribed shall be the be in a form which shall different League Council. No club shall make a contract Executive containing from the uniform contract or a contract a non-reserve except approval the . . with the written Commissioner. . clause,' discipline competition, and and “(g) preserve To TAMPERING. coaches, managers umpires, prevent players, the enticement of and to dealings respecting employment, negQtiations there shall be no or any player, manager present prospective, either or between coach or n and any is club other than-the club with which he under contract terms, acceptance by reserved, or or which he is- or which has player Negotiation List, any umpire any the on its or between and league league other than the with which he is under contract or acceptance terms, league club unless the with which he is have, writing, expressly connected shall negotia- authorized such dealings prior tions or to their commencement.” Major League 9 of provides B. Rule part: Rules “(a) may assign NOTICE. A club existing to another club an con-' player. tract with player, upon a The receipt of written notice of assignment, by such is his contract assignee. bound to serve the “After assignment the date rights of such obligations all policy labor federal and of of state law Collateral issues are also advanced.

I The Game New York since the quarter It a century Hoboken’s Knickerbockers 23 Nine defeated obligations rights become shall assignor clubs thereunder assignee . . .” club pro- contain 9 of Professional Rules C. Rules 3 and just quoted. to those parallel visions part: Player’s provides in Contract

D. The Uniform remedies, that, Player agrees to other (a) addition “4. ... equitable relief .injunctive other arid the Club shall entitled be. Player, including, of .this contract prevent a breach enjoin Player playing baseball among others, right from *3 during this any person organization or the term of other contract.” that, contract, (a). Player agrees prior The while under

“5. right contract,-'he .expiration Club’s renew this will not of the Club, -Player except that play baseball otherwise than for the may games pre- participate post-season under the conditions Major League scribed in the . . Rules. .” (a) Player may assigned by agrees be “6. this contract (and by any Club) any reassigned assignee the Club other Club Major League with Rules and Professional accordance Baseball Rules.” (a) January (or Suriday,

“10. On or before if a then the next preceding day) year following playing business next the last by contract, may Player season covered the Club tender year by mailing contract for the term of that the same to the Player following signature hereto, his at address his or if none given, then at his last prior address of record with the If Club. succeeding January 15, (cid:127)to the March 1 next Player said agreed upon Club have not contract, the terms of such then days on or before 10 after said March Club shall have the right by Player written notice to the at said address to renew this period year contract for the of-one terms, on the same except that payable Player the amount to the shall shall be such as the club notice; fix in .provided, however, said amount, said if fixed Elysian Fields June jay Alexander Cart-' 1346/with wright as the instigator and the umpire. The teams were but the amateur, contest marked a significant date in baseball’s beginnings. That game early led ultimately to the development of professional baseball' and its tightly organized structure.

The Cincinnati Red Stockings came into existence in 1869 upon an outpouring of local pride. only With one on- Cincinnatian the payroll, this professional team traveled over 11,000 miles that summer, winning 56 games and tying one. Shortly thereafter, St. Patrick’s .on Day 1871, the National Association of Professional Baseball Players was founded professional and the league was born.

The ensuing days colorful are well known. The ardent follower and the student of baseball'know of General Abner Doubleday; the formation of the National League in 1876; Chicago’s supremacy in the first year’s competi- tion under the leadership A1 Spalding and Cap Anson at third base; the formation of the American As- sociation and then of the Union Association in the 1880’s; the introduction of Sunday baseball; interleague war- fare with cut-rate prices admission and player raiding; the developmént of the reserve “clau’se”; the emergence- in 1885 of the Brotherhood of Professional Ball Players, and in 1890 of the Players League; the appearance of “junior League, American circuit,” in 1901, rising *4 the minor from. Association; Western the first World Major League Club, shall be an payable amount at a rate not less than stipulated rate for the 80% year. preceding “(b) The right Club’s to renew contract, provided as in sub- paragraph (a) of this paragraph 10, and the promise of Player the not play otherwise than with the Club have been taken into con- sideration in determining the amount payable under paragraph 2 hereof.” resump- the Series’ and disruption Series n League Federal short-lived 1905; the

tion trouble- the I years; War during World majors’ scene the Series; the of episode' discouraging and some expansion franchises; shifting of ball»; run home major in 1965 installation- leagues; forma- and players; new potential draft of league Players Association Baseball League Major tion in 1966.2 for one celebrated names, many are the there

Then and the diamond sparked that have another, reason recaptured tinder for provided have and environs its con- for and comparisons, reminiscence thrills, off-season: in-season anticipation versation Johnson, Walter Speaker, Tris Ruth, Babe Ty Cobb, Grover Gehrig, Lou Collins, Eddie Chadwick, Henry Hooper, Harry Hornsby, Alexander, Rogers Cleveland Mc- Wagner, Joe Robinson, Honus Goslin, Jackie Goose Mar- Phillippe, Deacon McGraw, Rube Carthy, John Ed Big Leach, Tommy Mathewson, Christy quard, Kelly, King Germany Schaefer, Jones, Davy Delahanty, Wee Willie Crawford, Wahoo Sam Brouthers, Dan Big Snodgrass, Fred Austin, Jimmy Walsh, Ed Keeler, Big Man Iron Merkle, Fred Jennings, Hugh Paige, Satchel Harry and Stan' Brown, Three-Finger McGinnity, Amos Ruffing, Bridwell, Red- Al Mack, Coveleski, Connie Meyers, Chief Wood, Smokey Joe Rusie, Cy Young, Evers, Johnny Lobert, Klem, Hans Bender, Bill Chief Rube Huggins, Miller Campanella, Tinker, Roy Joe Wambsganss, Bill Roush, Edd Vance, Dazzy Bressler, Anson, Cap Chance, Frank Rickey, Branch Griffith, Clark Ritter, (1969); Encyclopedia L. The Baseball generally See (1960, Baseball Seymour, (1966); 1 & H. Times Glory Their 1970). (1966, Voigt, American 1971); 1 D. & *5 Lefty O’Doul, O’Farrell, Bob Jones, Nap Sad Sam Lajoie, Groh, Lloyd and Heinié Kamm, Willie Bobby Veach, Comiskey, Roger Mclnnis, Charles Waner, Stuffy Paul Sisler, Wheat, George Bill Zack Bresnahan, Dickey, Harry Heilmann, Fred Rixey, Eppa Gehringer, Charlie Rube Traynor, Greenberg, Dizzy Dean, Pie Clarke, Hank Radbourne, Hubbell, Old Hoss Terry, Carl Waddell, Bill Lefty Grove.3 Maranville, Foxx, Rabbit Jimmie Moe Berg, endless. The list seems “World reference appropriate

And recalls the one L. Sr.; Ernest Lárdner, Ring Serious,” attributed of “Tinker ring Bat”;4 Thayer’s “Casey at some, By mentioning years. only earlier names from These are equally celebrated. of others omission one risks unintended knowl- enjoyed One writer baseball. Millions have known everyone did sports assumed that field of almost edgeable in the day, otherwise: until, he discovered one Lee, Washington never heard of a cové “I knew who!d jamboree, Napoleon Of Caesar ancient from that, bli’me, queerer things anything like But, are than there never, ‘Gasey the Bat’! who heard at For here’s a cove Poe; Keats, Shelley, Burns or heard of “Ten million never Casey’s by the force of they ‘the air was shattered know But blow’; not, Dickensj-iike Shakespeare, nor as

They heard of never they haunted drama from old Mudville’s the somber But know lot. Casey! l\ireaming? Is it true? Am heard of

“He never day the summer ashes when Is fame-but windblown through? quickly grandeur doomed to die and is greatness fade so

Does early morning, dusk down eré the rides That bloomed in sky?” Casey” Rice, Sportlight, New

“He Never Heard of Grantland 1, 1926, Tribune, p. 23. York Herald June Evers to Chance”;5 and all the other , happenings, habits, and superstitions about and around baseball that made. *6 it the pastimé” “national or, depending upon point 6' of view, “the great American tragedy.”

II The Petitioner The petitioner, Cürtis Charles Flood, 1938, born in began major his league career in 1956 when he signed a contract with the Cincinnati Reds for a salary $4,000 for the season. He had no attorney or agent advise him on that occasion. He was traded to the St. Louis Cardinals before the 1958 season. Flood rose to fame as a fielder center with the Cardinals during years the- 1958-1969. In those 12 seasons he compiled- a batting average .293. His best offensive season was 1967 when he achieved .335! He .301 or better in six of the 12 yéars. St. Louis He participated in the 1964, 1967, and 1968 World Series. He played errorless ball in the field in. 1966, and once enjoyed 223 consecutive errorless games. Flood has received seven Golden Glove Awards. He was co-captain of his team from 1965- 1969. He ranks among the 10 major league outfielders possessing highest lifetime fielding averages:

5 “These are the saddest of possible words,

'Tinker to Evers to Chance.’ Trio of bear cubs, and fleeter than birds,

'Tinker to Evers to Chance.’ Ruthlessly pricking gonfalon our bubble,' Making a Giant hit into a double— Words that weighty are nothing but trouble: ” ‘Tinker to Evers to Chance.’ Franklin Adams, Pierce Baseball’s Sad Lexicon. 6 George Bernard Shaw, The Sporting News, May 27, 1943, p. 15, col. 4.

265 years compensation Flood’s St. Louis for the shown was: a bonus for $13,500 (including signing)

1961 1962 $16,000

1963 $17,500 $23,000 $35,000 $45,000 $50,000 $72,500

10B9 $90,000 ben- figures any fringe These do not include so-called efits or World shares. Series

But at Flood was age October *7 traded Phillies of National Philadelphia to the the . in a was not con- League multi-player transaction. He by telephone sulted about He trade. was the informed only and received formal deal had been notice after the to the complained consummated. In he December made Commissioner of that he be Baseball and asked liberty a free his own agent placed and be at to strike His re- major with other team. bargain league any quest denied. January

Flood then suit7- in instituted antitrust of New 1970 in District federal court Southern the not all named (although York. The were defendants in each cause of were Commissioner of action) Base- the major ball, presidents leagues, two major complaint In league general, charged clubs. rights violations the federal laws and civil violation of state statutes and the common statutes, law, imposition involuntary and the of a form of peonage 7 Concededly by Major supported League Players tlie Association, players’ collective-bargaining representative. Tr. Arg. 12. of Oral

<N CDCD contrary

servitude to the Amendment and Thirteenth 42 U. S. 18 U. 1581, § S. C. and 29 § IT. C. C. S. §§ and 103. 102- Petitioner in- sought declaratory and junctive relief and treble damages.

Flood declined play for Philadelphia in despite a salary $100,000 offer, and he sat out the After year. was concluded, season Philadelphia^ sold its rights to Flood to the Washington Washington Senators.. the petitioner able were to conie tó terms for 1971- at n a salary of $110,000.8 Flood started but, season apparently he because was dissatisfied per- with his formance,-he left the Washington club April 27, early in the campaign. He has not played baseball since then.

The Present Litigation Judge Cooper, in a detailed first opinion, denied a preliminary injunction, 309 F. Supp. (SDNY 1970), observing on way:'

“Baseball been the pastime has national for over years one hundred enjoys place a unique and/ our American heritage. Major profes- league sional baseball is avidly followed of fans, millions upon looked pride fervor and and provides special inspiration source-.of and competitive team spirit especially for the young.

“Baseball’s status in the life of the nation *8 so is pervasive that it would not credulity say. strain the Court can judicial take that notice baseball is everybody’s put business. To mildly it and- with restraint, it would be unfortunate indeed if a fine sport, and which profession, brings from surcease daily travail an escape from ordinary 8 parties agreed The that-Flood’s participating in baseball in 1971 would prejudice be without to his case.

267 suffer were to land, inhabitants of this most by any of undue concentration because the least con- profit on commercial any group one ' it higher ground; is on game siderations. The Supp., every keep it there.” one behooves F. at 797. granted. for an trial was application

Flood's early de- on the until trial its decision next deferred court of action, causes primary dismiss the fendants’ motions to summary judgment a defense motion granted but (SDNY Supp. 312 F. of action. an additional cause 1970). 1970. May place took and June

Trial court an developed. ensuing In An- extensive record was Cooper (SDNY 1970), Judge opinion, Supp. 316 F. noted first that: concede that in the main

“Plaintiff’s witnesses necessary ele- players reserve on is a some form of league of baseball as a organization ment of the present all-embracing sport, but contend that various, needlessly is restrictive and offer system might in their view loosen alternatives which sacrifice to the . . . game. bonds without proof does of credible “Clearly preponderance With clause. of the reserve not favor elimination himself, it shows exception plaintiff the sole it do not contend plaintiff’s even witnesses they regard fact substantial wholly undesirable; at 275-276. Supp., 316 F. meritorious. ...” portions Club National Federal Baseball v. He then held that York Toolson v. New League,, (1922), 259 U. S. that' Yankees, Inc., controlling; (1953), were 346 U. S. exemption the issue whether to reach necessary it was not aspects result because laws would .the from *9 baseball now are a subject of collective bargaining; plaintiff’s state-law claims, those based common law as well onas statute, were be. denied because base- ball was not “a matter which of diversity of treat- admits ment,” 316 F. Supp., 280; at involuntary servi- claim tude failed because of the absence' of “the essential element of this cause of action, showing compulsory service,” 316 F. Supp., at 281-282; and that judgment was to be entered for the Judge Cooper defendants. included'a statement of personal conviction to the effect that “negotiations produce could an accommodation on system reserve which would eminently be fair and equitable to all concerned” and that “the reserve clause can be fashioned as so to find acceptance by player and club.” 316 F. Supp., at 282 and 284.

On appeal, the Second Circuit felt “compelled af- firm.” F. 2d It regarded the issue of state law as one' of first impression, but con- cluded that the Commerce Clause precluded its applica- tion. Judge Moore added a concurring opinion in which predicted, he with respect, to the'suggested overruling of Federal Baseball and Toalson, that “there is no like- lihood that such an event will occur.”9.- 443 F. 2d, at 268, 272. 9 “And properly so. Baseball’s and future welfare -should not politically insulated interpreters of technical antitrust stat utes but rather should be for the through voters their elected

representatives. If baseball-is damaged to be by statutory regula tion, let the congressman face his constituents the next November and also face consequences his voting record.” 443 2d, F. at 272. Cf. Judge Friendly’s comments in Salerno v. League, American F. 1003, 1005 2d (CA2 1970), denied, cert. sub nom. Kuhn, Salerno v. (1971): 400 U.S. 1001 freely

“We acknowledge our belief that Federal Baseball was not one of Mr. Justice happiest Holmes’ days, that the rationale of Toolson is extremely dubious that, Supreme use the Court’s , We granted certiorari in order to look once again at unusual, *10 troublesome situation. 404 U. S. 880 (1971,);

IV The Legal Background A. Federal Baseball Club v. League, National U. S. (1922), a suit for treble damages instituted aby member of the Federal League (Baltimore) against the National and American Leagues and others. The. plaintiff obtained verdict the a. trial court, but Court of Appeals reversed. main brief by filed plaintiff with this discloses Court that it was strenu- ously argued, among other things, that the business in which the defendants were engaged was interstate com- merce; that the interstate relationship among the sev- clubs, located as they were in differént States, was eral predominant; that organized baseball represented in- an of vestment colossal wealth; it was an engage- ment in moneymaking; that gate receipts were divided by agreement between the home club and the visiting club; and that the business of baseball was to be dis- tinguished from the mere playing of the game aas sport for physical exercise and diversion. See also 259 S.,U. at 201-206. (cid:127) Mr. Justice Holmes, speaking succinctly for a unani- mous Court, said:

“The business giving is exhibitions base ball, (cid:127)which are purely staté affairs. . . . But the fact in order to give the exhibitions the Leagues must free induce persons to cross state lines and adjectives, own the distinction between baseball and pro- other ‘inconsistent’, sports fessional is 'unrealistic,’ and ‘illogical.’. . . While we should not fall out of our chairs with surprise at the news that Federal Baseball and Toolson had been overruled,'we are not at all certain the ready Court is give to them a happy despatch.” not is so doing their for pay arrange must . . business. character change

enough essen- incident, not mere ais transport [T]he the ex- incident, it is which That thing. tial not would money made although hibition, accepted- commonly in the commerce trade called defendants, put it is As words. those use of a not is production, related not effort, personal its consum- which That commerce. subject commerce become not does not commerce mation That transportation because States among the repeat, To place. takes mentioned have- we firma below, illustrations, Court by the given case, a argue member out sending lawyers *11 lec- out sending bureau lecture Chautauqua or the because commerce in such engage not turers, does State. to another goes or leeturer lawyer the tois business plaintiff’s the right are “If we by restrictions way the and in the same described getting from plaintiff the prevented contract con other the bargains their break players an not were the defendants against charged duct the 259. States.” among commerce with interference 208-209.10 S., at Ur the next least; 10 for legally at baseball, really saved “What by United the it spread over canopy protective the century was

half League Federal Baltimore in the decision Court’s Supreme States Justice In it 1922. in Baseball Organized against suit anti-trust of business the court, ruled.that for a unanimous Holmes, speaking in commerce ‘trade or not profit was exhibitions giving baseball effort, ‘personal because words’ of use those commonly-accepted the commerce’; nor was subject not a production, related not lines across state ball clubs movement the interstate, because it that, be noted It should the business. merely ‘incidental’ was business; a did baseball believe, call many Holmes contrary to what the text to read troubled have not who again those time was incorrectly that said court have claimed decision (1971). 420 Seymour, H. a business.” sport and'not by persuaded oppos not to be Court thus chose The , plaintiff, among examples proffered them ing Hand’s decision a demurrer Judge Learned .(a) ’ respéct vaudeville complaint Act a Sherman to. circuit several covering a theater traveling entertainers Offices, Marienelli, Booking H. B. Ltd. v. United States, (SDNY (b) Mr. Justice F. 165 first 1914); Pigg, Textbook Co. v. opinion Harlan’s in International correspondence S. 91 to the effect that U. (1910), pursued the mail constituted commerce through courses own among (c) Justice Holmes’ States; Mr. demurrer opinion, Court,'on for another unanimous case, shipment, Act to cattle relating a Sherman for the interrupted interstate movement which Co. v. finding purchasers at the & stockyards, Swift States, only (1905). United earlier U. S. 375 case the' parties wére able to loeate where question organized was raised whether baseball was League within the Base Sherman was American Act Chase, ball Club v. 86 Misc. N. Y. S. 6 441, 149 That court had question negative. answered

B. year Federal Baseball and with later, was cited a disfavor, opinion by another Justice Holmes Mr. out, for a unanimous anti complaint charged Court. The trust It respect violations with to vaudeville bookings. was held, however, the claim was not frivolous *12 and that the bill should not have been dismissed. Hart v. B. F. Exchange, Keith Vaudeville 262 271 U. S. (1923).11

It has cited, also been not respect unfavorably, the practice of United States law, v. South-Eastern 11On remand of the Hart case the trial court dismissed the com plaint at the close of evidence. The Second Circuit affirmed ground on the plaintiff’s evidence failed to establish that transportation the interstate was more than 12 incidental. 2d F. (1926). 341 This certiorari, Court (1926). denied 273 U. 703 S. 272 Assn.,

Underwriters 533, (1944) 322 U. S. 573 (Stone, C. J., dissenting)with respect out-of-state con Assn., States v. tractors, United Employing Plasterers 347 186, U. S. (1954) 196-197 (Minton, J., dissenting); upon a general comparison North Amer reference, SEC, ican Co. v. 327 U. S. 694 (1946).

In the years that followed, baseball continued to be (cid:127) subject to intermittent courts, attack. The however, rejected these -authority on the challenges Federal Baseball. In some cases was laid, although stress unsuccessfully, on new development factors such as the of radio and television with their substantial additional revenues to baseball.12 For the most part, however, the Holmes opinion generally was necessarily accepted as controlling authority.13 And Report 1952 on Study, Subcommittee Power Monopoly House Committee on the Judiciary, Rep. H. R. No. 2002, 82d Cong., 2d Sess., 229, it said, in conclusion:

“On the other hand the overwhelming prepon- derance evidence established baseball’s need some, sort of reserve clause. history Baseball’s shows that chaotic prevailed conditions when there _was no reserve Experience clause. points to no

feasible substitute protect the integrity of the game or to guarantee a comparatively even com- 12 Toolson v. New York Yankees,. Inc., (SD 101 Supp. F. 93 Cal. 1951), aff’d, (CA9 F. 2d 1952); 200 198 Kowalski v. Chandler, 202 (CA6 F. 2d 413 1953). See Salerno v. 429 F. 2d League, American (CA2 1003 1970), denied, cert. sub nom. Salerno v. 400 U. S. Kuhn, (1971). 1001 But cf. Gardella v. Chandler, (CA2 172 F. 2d 402 1949) (this case, advised, we are was subsequently' settled); Martin League National Club, (CA2 1949). 2dF. v. Baseball 13 Corbett v, 202 F. Chandler, (CA6 2d 428 1953); Portland Base Club, ball Inc. v. Baltimore Club, Baseball Inc., (CA9 F. 2d 680 1960); Niemiec v. Seattle Rainier Club, Inc., 67 F. Supp. (WD 1946). Wash. See State v. Milwaukee Braves, Inc., 31 Wis. 2d 699, 144 N. 2dW. cert. denied, 385 U. S. *13 petitive struggle. The evidence adduced at hearings clearly would justify not the enactment flatly legislation condemning the reserve clause.” C. The granted Court certiorari, 345 U. 963 (1953), S. Toolson, Kowalski, in the and Corbett cases, cited nn. 12 and supra, and, by a per curiam (Warren, short J.,C. and Black, Frankfurter, Douglas, Jackson, Clark, and Minton, JJ.), affirmed the judgments of the respective appeals courts of three those cases. Toolson v. New. k Yankees, Inc., Yor 346 U. S. 356 Federal Baseball cited as holding “that of pro business viding public baseball games profit for between clubs of professional baseball players was not scope within the laws,” federal atS., U. and: antitrust

“Congress has had the under ruling consideration but has seen fit bring not such business under by these laws legislation prospective effect. having The business has thirty years thus been left for develop, it understanding that was. not subject existing antitrust legislation. pres- ent cases ask us to prior overrule the decision and, with retrospective hold the effect, legislation appli- cable. We think that if there are evils in this field which now application warrant it of the laws it should be Without legislation. re-examination of the underlying issues, the judg- below, ments are affirmed on authority of Fed- eral Baseball Club Baltimore v. National League Clubs, supra, so far as that of Professional decision determines that Copgress had no intention of including the business of within scope of the federal -antitrust laws.” Ibid.

This quotation reveals four reasons the Court’s of Toolson affirmance and its companion (a) cases: Con- gressional awareness for three decades of the. Court’s Baseball, ruling Federal coupled with congressional *14 inaction, was left alone The fact that (b) that understanding the develop. period upon for that federal existing subject system the reserve was not laws, Federal overrule (e) A reluctance effect, pro-A(d) consequent Baseball with retroactive by provided any remedy needed fessed desire that emphasis The by decree. rather than court legislation evén attributed determination, in was on the Toolson. had no intention Baseball, that Congress to Federal federal anti- reach the baseball within the of include dis- JJ.) Reed, and (Burton laws. Two Justices trust and aspects, revenue stressing sources, factual sented, the base- express exemption organized of an the absence of at 357. S., from the Act. 346 U. ball Sherman Id., 358, at mentioned. congressional 1952 was study 359, 361. petitioner

It to note that Toolson the interest Federal Baseball and flatly wrong had that “is argued No. O. T. overruled,” Petitioner, must be Brief for 18, Powell, a 1953, Thomas Reed constitu- p. that. an as counsel for urged, tional scholar of no small stature, amicus, Brief for enterprise,” “baseball is a unique that Ball League Boston American Base Co. as Amicus Curiae competition applied “unbridled as to baseball that Id., public in the 14. would not be interest.” at Shubert, (1955), States v. D. United U. S. civil, engaged antitrust action against defendants production of theatrical attractions legitimate operating the United and in' theaters throughout States for presentation of such attractions. The District complaint authority Court had on the dismissed Y (SDN Federal F. Supp. Baseball and Toolson. 120 1953). This Court reversed. Mr. Chief Justice Warren conception noted the Court’s broad of “trade com .types and the merce” the antitrust statutes enter prises already of that phrase. held to bé within the reach Toolson afforded Federal He stated around built a conclusion businesses no basis from exempt are exhibitions of local performance went He then at 227. S.,U. laws. the antitrust meticulously in Toolson holding on to elucidate mentioned above: the factors spelling out through speaking Baseball, Court, Federal “In business with the dealing Holmes, was Mr. Justice travel, . . The nothing else. baseball 'and essen- not the 'a incident, mere concluded, was Court ... thing.5 tial as in the same issue was Toolson,

“In where *15 awith confronted Baseball, the Court Federal For over of circumstances. combination unique Court of this a decision had stood years there business of the baseball the status specifically fixing particularly and more laws under the antitrust During ‘reserve clause.5 validity of the so-called prece- Federal Baseball on the period, reliance devel- had grown the baseball business dent, ' actively it had although And oped. Congress, . . reject fit to had not seen ruling, considered the this' back- by amendatory Against legislation. it to overrule in Toolson was asked the Court ground, of it was out ground Federal reflecting present-day step subsequent decisions concepts Court, of interstate commerce. case, declined view of the circumstances of the necessarily the Court re- do so. But neither did In- Baseball.. affirm all that was said in Federal .underlying re-examination stead, ‘[w]ithout ‘so Baseball. issues,5 the Court adhered Federal had Congress decision determines that far as that of including no the business baseball intention the federal seope laws.5 within n

U. S., at 357. In short, Toolson was a narrow appli- cation of the rule of stare decisis. . If the Toolson holding expanded—

or contracted —the appropriate remedy lies with Congress.” 348 S.,U. at 228-230.

E. United States v. International Boxing Club, 348 U. S. 236 (1955), awas companion to Shubert and was decided the same day. This awas civil antitrust action against defendants engaged in the business of promoting professional championship boxing contests. again Here the District Court had dismissed the complaint in reli ance upon Federal Baseball and Toolson. The Chief Justice observed that “if it were not for Federal Baseball and Toolson, we think that be too clear it.would dispute that allegations Government’s bring the within, defendants the scope the Act.” S., 348 U. at 240-241. He pointed out that defendants relied on the two cases but also would have been con tent with a more restrictive interpretation of them than the Shubert defendants, for the boxing argued defendants the cases only immunized businesses that involve exhibitions an athletic nature. The Court accepted neither argument. It again noted, 348 S.,U. at 242, that “Toolson neither overruled Federal Baseball nor- necessarily reaffirmed all that was said in Federal Base ball." It stated:

“The controlling consideration in Federal Base- ball and Hart was, a instead, very practical one— the degree of interstate activity involved in the particular business under- review. It follows that stare decisis cannot help the defendants here; for, contrary to their argument, Federal Baseball did not hold that all businesses based on professional sports were outside the scope of the laws. The- issue confronting us is, therefore, not whether a previously granted exemption should continue, be in the exemption granted should whether an but to Congress issue is And that first instance. S., Court.” 348 U. 243. resolve, not at - Congress then presence Court noted the of the antitrust application forbidding, various bills sports enterprises”; professional laws to “organized these; sub- hearings of extensive on some of holding recommendation opposition; postponement a committee thus left “Congress fact baseball; as to laws.” of the antitrust then-existing coverage intact S., at U. 243-244. joined by Minton, Mr. Justice Mr. Justice Frankfurter, “It he dissented. would baffle the subtlest ingenuity,” said,- “to a factor between other single differentiating find sporting, exhibitions . and baseball insofar as the . sport conduct of is to the criteria or con- relevant appli- siderations which the Law becomes Sherman ” a cable to 'trade or S., commerce.’ 348 U. at 248. He went on:

“The Court decided- as it did in the Toolson case application as an decisis. doctrine stare That doctrine not, sure,, imprisonment an whimsy. of reason. But neither is it a It can -hardly preferred be that this Court gave posi- great tion baseball because it is the American sport. aspect If law, ... decisis be one stare as is, disregard it it in identic is mere situations caprice.

“Congress, may yield to senti- hand, the.other subject only ment and be to due capricious, process. ...

“Between this case and Shubert illustrate them, that nice but rational distinctions áre inevitable I in' adjudication. agree opinion with the Court’s Shubert for the’ reason that constrains me precisely at dissent this case.” 348 U. 249-250. S., *17 278 separately dissented Minton also Justice

Mr. He added commerce. is not trade boxing that ground attempted” has not “Congress that comment 253. 251, at S., 348 boxing. U. and baseball control call did not Justices, thus, dissenting The two Toolson; they merely and Federal Baseball of overruling umbrella same under the should be boxing felt that Frank- Justice as and, baseball Mr. as was freedom not'exempt they could at S., 348 U. said, furter different sport every other “to the exclusion from it.” jot or tittle legal not one National v. Radovich marched on. parade F. The Clayton civil was a (1957), League, Football 352 U. S. laws application testing Act case Court dismissed. The District professional football. Fed- on the basis part affirmed Ninth Circuit hesitate did not Toolson. The court eral of the baseball pull” strength that the to “confess Boxing. equal,” “is about of International cases and “[fjootball sport” team is a that but then observed 231 F. 622. an one. 2d boxing individual opinion Mr. Justice with an This Court reversed Tool- ruling made its He said the Court Clark. would that more it concluded son “because harm uphold- than in -Federal Baseball overruling be done validity.” was of dubious which at best ing ruling a had not Congress He noted that S., at 450. 352 U. said: acted. He then litigation with the flood of this,

“All combined repudiation, its harassment woüld follow the retroactive effect of such that would .ensue, result that practical the Court to decision, led Boxing International Club v. United chapter is The case’s final States, 358 U. S. *18 authority- line of unequivocal the sustain

it should years. many over reaching n are still Baseball Federal and Toolson “[S]ince actions authority in controlling cited as specifically nowwe business, of fields other involving there facts the to established there rule limit the professional organized of e., the i. business involved, continues Congress as the long As baseball. extend— not to—but adhere should wfe

acquiesce cases.... in those made of the Act interpretation thé il- or inconsistent, unrealistic, ruling is “If this the from aside answer, is sufficient it logical) we were businesses, the between distinctions first the of baseball question considering the no doubts. have would slate we a clean upon time* baseball the business held But Federal business other No Act. scope outside the an such cases has of those coverage claiming or- conclude therefore, We, adjudication. if discrimination, error way derly to eliminate by court not and by legislation be, any there accom- more are processes Congressional decision. hearings industry whole affording the modative, of new formulation in assist an opportunity more is therefore product resulting legislation. alike. public industry and the protect likely would action congressional scope of whole The. for the dates effective advance in long known without future set in could legislation be. might which surprise retroactivity and

injustices (foot- at 450-452 S.,U. action.” follow court omitted). note for the essentially dissented Frankfurter Justice

Mr. Boxing, his dissent International stated reasons by Mr. joined Justice S., Harlan, 352 U. at 455. Mr. he, too, dissented because also Brennan, Justice S., 352 U. from baseball.” football distinguish “unable to not . did .call dissenting Justices again at 456 Here merely They decisions. overruling for.the respect and, the two distinguish could not out spqrts decisis, for stare voted to affirm. Assn., National Basketball Haywood v.

G. Finally, in his (1971), 401 U. S. Douglas, Mr. Justice Court’s reinstated capacity Justiqe, as Circuit a District lite in basket professional favor of injunction.pendeníe does, enjoy not said, “Basketball player ball ... ’ *19 S., laws.” 401 at 1205.15 exemption from-the antitrust U. understandably spawned H. This series of decisions mildly commentary,16 of it critical and some extensive , 15 Management Inc., Rockets v. All-Pro 325 F. Denver See also Washington (CD 1971); Basketball Supp. 1049, 1060 Cal. Professional (SDNY rp. Assn., Supp. Co v. National Basketball 147 F. 154 1956). 16 Laws, 16 Fordham L. Rev. Neville, Baseball and the Antitrust L, Commerce?, 17 Chi. (1947); Eckler, Sport U. , or 208 Baseball — Base Manpower: Organized Comment, Monopsony in (1949); 56 Rev. Gregory, (1953); Laws, P. 62 Yale L. J. 576 Antitrust ball Meets the Note, The (1956); Study, 19 An c. Player, Economic The Baseball Sports Team Act: Professional Super the Sherman Bowl and Court, Supreme (1967); The L. Rev. 418 Laws, 81 Harv. Antitrust Supreme (1954); 136-138 Term, Rev. 68 Harv. L. 1953 (1957); Note, 32 94, 170-173 Term, Harv. L. Rev. Court, 1956 71. (1949); Va, Note, Dame Law. 372' -(1946);- 24 1164 L. Rev. Notre Col, City L. Rev. Noté, 22 Kan. (1953).; U. 242 L. Note, Rev. 53 Note, L.' N. IT. (1954); 29 Y. 270. Note, Miss. L. J. (1954); 25 173 Note, (1956); Í10 L. Rev. Note, 105 U. Pa. (1954); .Rev. 213. (1955); 447 Rev. (1954); Note, 35 B. XL L. 890 Rev. 32 Texas L. 606 L. Rev. Note, Wash. (1957); 23 Geo. .725 L. Rev.- Note, Col. 57 271 L, L. (1955); .Note, 26 Miss. J. 281 Note, J. (1955); 1 How. Q. Note, Temple L. (1955)'; 29 369 L. J. (1955); Note, 9 Sw. Rev, Tul, n 103 Dick.' (1955)'; Note, 62 L. Note, 29 (1955); much not; nearly of it all of .it to Congress looked any remedy that might be deemed essential.

I. Legislative proposals have been per- numerous arid sistent. Since Toolson more than 50 bills have been introduced Congress relative to applicability nonapplicability of the antitrust laws baseball.17 A few of passed these one house or the other. Those that did would have expanded, .not restricted, reserve system’s exemption to professional other league sports. And the of Sept. Act 30, 1961, L.- 87-331, 75 Pub.. Stat. 732, and the merger addition thereto effected the Act of Nov. 8, 1966, Pub. L.. 89-800, § 6 (b), ; n (1957) L. Rev. 96 Note, 11 (1957); Note, Sw. L. J. 516 N. C. L. (1958); Rev. Note, (1966); 35 Fordham L. Rev. 350 Note, 8 B. C. Ind. Wayne & Com. L. (1967)Note, Rev. 341 L. (1967); Rev. 417 Note, 2 Rutgers-Camden (1970); J. 302 L. Note, C, Diego 8 San (1970); Rev. 92 Note, 12 B. L. Ind. & Com. L, (1971);' L. Rev. 737 Note, 12 Mary Wm. & Rev. 859 17Hearings on H. R. 5307 et al. before the Antitrust Subcommittee of the Judiciary, House Committee Cong., on the 85th 1st Sess. (1957); Hearings on H. 4070. R. 10378 and S. before the Subcom mittee Monopoly on Antitrust and of the Senate Committee on Judiciary, Cong., (1958); Hearings 85th 2d Sess. on H. R.-2370 et al. before the Antitrust Committee Subcommittee House. ¿he (1959) (not Judiciary, Cong., printed); Hear 86th 1st Sess. Antitrust ings on- on S. 616 S. 886 before Subcommittee .the Cong., Judiciary, Monopoly on the 86th of the Senate Committee *20 on (1959); Hearings the Subcommittee 1st on S. 3483 before Sess. Judiciary, on the Monopoly Committee Antitrust and Senate 2391 before the Sub (I960);- Hearings on S. Cong., 2d 86th Sess. on Monopoly Senate Committee and on Antitrust committee 1303, Sess,' 88th (1964); Rep. No. S. Judiciary, Cong., 2d 88th Hearings before Subcommittee (1964); on S. 950 Cong., 2d Sess. the Ju on the Senate Committee Monopoly Antitrust and on S„ 462, Cong., 89th (1965); Rep. No. Cong., 1st diciary, Sess. 89th Sess., Cong., 1st in the 92d Bills introduced 1st Sess. 11033, 2305, 2616, H. R. R. H. subject S. are S. bearing (cid:127) 10825. R.H. Stat. U. C. 1291-1295, §§ S. were also ex- pansive rather than restrictive to antitrust exemption.18 as

V In this, view all it seems appropriate say now that: 1. Professional is baseball and it engaged business (cid:127)

in interstate commerce. 2. With system its reserve enjoying exemption from the federal antitrust laws, is, in a very-distinct Sense, an exception and anomaly. an Federal Baseball Toolson have become an aberration confined to baseball.

3. Even though might regard others this as “unrealistic,, inconsistent, or illogical,” Radovich, see S., TJ. at 452, the aberration is an established one, and one that has been recognized not only in Federal Baseball and. Toolson, Shubert, but International Boxing, and Radovich, as well, a total of five consecutive cases this Court. It is an aberration that has been with us now for half a century, one heretofore deemed fully entitled to the benefit of stare decisis, and one that has survived the Court's expanding concept of interstate commerce. It rests on a recognition and an acceptance of baseball’s unique characteristics and needs.

4. Other professional sports operating interstate —foot- s 18Title 15 1294 read U.S.C.§ : “Nothing contained in chapter shall be deemed to change, determine, or otherwise affect the applicability or nonapplicability of the laws any act, contract-, agreement, rule, course of conduct, or activity other by, between,' or among persons engaging in, conducting, or participating in' organized professional team sports football, baseball, basketball, or hockey, except agree- ments to which section 1291 of this title shall apply.” (Emphasis supplied.)

283 ball, boxing, basketball, and, presumably, hockey19 and golf20 not so exempt. —are

5. The advent radio and television, with their con- , sequent increased coverage and additional revenues, has not occasioned an of Federal overruling Baseball and Toolson.

6. The Court has emphasized that 1922 baseball, since with full and continuing congressional awareness, has been allowed to develop and to expand unhindered federal legislative action. Eemedial legislation has been introduced repeatedly Congress but none has been ever enacted. The Court, accordingly has. concluded that ^ Congress yet as has had no intention subject baseball’s system reserve to the reach of the antitrust statutes. This, obviously, has been deemed to be something other than mere congressional silence passivity. Boys Cf. Markets, Inc. v. Retail Clerks Union, U. S. 241- 242 (1970).

7. The Court expressed has concern about confu sion and the retroactivity problems that inevitably would result with judicial a overturning of Federal Baseball. It has preference voiced any that if change is to be made, it come by legislative action that, by its nature, only prospective in operation.

8. The Court noted in Radovich, 352 U. S., at 452, the slate with respect to baseball is hot clean. In- deed, it not has been clean for half a century.

This emphasis concern are still with us. We. continue to be loath, years after Federal Baseball almost, two decades Toolson, after to overturn those cases judicially when Congress, by its positive inaction, 19Peto v. Square Madison Corp., Garden Cases, 1958 Trade 69,106 (SDNY ¶ 1958). 20Deesen v. Assn., 358 Professional F. 2d (CA9), Golfers’ cert. denied, 385 U. S. *22 far and, long for so stand to decisions those allowed has clearly has implication, and inference mere

,beyond legislatively. them disapprove to not desire a evinced Federal to again once adhere we Accordingly, base- professional to application their and to Toolson and Rado- Boxing and International to also adhere We ball. professional to applications respective their to vich and any incon- is there If football. .professional and boxing inconsistency and an it is this, in all illogic sistency or. by the be remedied tois that standing long illogic act other- to If we were by this Court. not and Congress as the conclusion withdrawing from wise, would .we from the and Toolson in intent made congressional Under expressed. therein retrospectivity toas concerns consistency even in is merit circumstances, there these consistency that beneath that claim might though some inconsistency. layer of is a the application as argument petitioner’s deserves, re- Cooper Judge word. antitrust laws

state regu- antitrust state state claims jected the law because because policy federal conflict with lation would any regulation in “uniformity1 required] national [is at 280. Supp., 316 system.” F. its reserve baseball and stated, affirming,' Appeals,' “[A]s in The Court outweighs commerce burden on interstate states’ Com- system, reserve regulating in baseball’s interests merce Clause of state application here precludes the orga- applied As 2d, F. at 268. 443 law.” observa- of this Court’s light in baseball, and nized Toolson, Baseball, in Federal holdings tions and Radovich, Boxing, and Shubert, in International position inconsistent taken allegedly baseball’s despite law,21 of state application past respect in the Baseball, 204, T. Respondent in Federal No. O. See Brief 1953, Toolson,'No. 18, p. T. 30. also State v. 1921,p. O. 'See and in denied, 699, 144 Braves, Inc., 2d N. cert. Milwaukee W. 2d Wis. ). (1966 S.U. - these statements adequately dispose of the state law claims.

The conclusion we have reached makes it unnecessary for us to consider the respondents5 argument additional system the reserve a mandatory subject of col- lective bargaining federal labor there- policy fore exempts system the reserve from the operation of federal antitrust laws.22

We repeat for this case what was said in Toolson:

“Without re-examination of the underlying issues, the [judgment] below affirmed on authority [is] *23 V; of Federal Baseball Club Baltimore National of League Clubs, Baseball supra, far so of Professional as that decision determines that had no Congress of intention including the business of within the scope of the federal antitrust laws.” 346 U. S., at 367.

And what the Court said in Federal Baseball in 1922 and what it said in Toolson in 1953, say we again, here in 1972: the if remedy, any is indicated, for is congressional, and not judicial, action.

The judgment of the of Appeals Court is

Affirmed. Me. Justice joins in the judgment of the Court, White and in all but I Part of opinion. the Court’s

Me. Justice took no part Powell in the consideration or decision of this case.

Me. Chief Justice Buegee, concurring.

I concur in all Part I ..but of the Court’s opinion but, like Me. Justice Douglas, I have grave reservations 22See Jacobs Winter, & Principles Antitrust and Collective Bargaining by Superstars Athletes: Of Peonage, 81 in Yale L. J. 1 (1971), suggesting present-day irrelevancy of the antitrust issue. Yankees, New v. York Toolson of correctness the toas his dis- in he notes as (1953); S.

Inc., U. “lived has but holding that joined sent, he which one is be, it if such error, it.” The regret rested have people many a great affairs the this in which forum the not are Courts time. long a with agree unsnarled: Mb. ought I web tangled not is a inaction Douglas congressional that Justice to let now course least undesirable base, but solid Congress time it is Congress; with rest matter problem. to solve acted Bren- Mb. Justice whom Douglas, Justice

Mb. dissenting. concurs, nan v. Club Federal decision Court’s This is a 1922, made S. League, U.

National creator, we, its law stream in the derelict rather aof view1 romantic a Only remove. should years would last 50 over account dismal business midstream. derelict keep that view narrow, parochial had Court In 1922 old landmarks demise of the With commerce. 1,S. Co., U. Knight v. States United particularly

era, v. Vir- Paul 251, and S. 247 U. Dagenhart, v. Hammer has commerce concept of whole 8 Wall. ginia, *24 changed. Island as Mandeville such decisions modern

Under 219; Co., U. S. Sugar Crystal American v. Farms Fil v. Wickard 100; S. Darby, 312 U. v. United States South-Eastern v. States 111; United U. S. burn, 317 Congress power of Assn., 322 U. S. Underwriters phases all to reach enough broad as recognized system. industrial our national operations the vast York New v. opinion in Toolson Court’s joined the I 1 While it; I would regret to 356, I have lived Inc., Yankees, 346 U. S. error. be fundamental its I believe what correct now An industry dependent so on radio and television as is gleaning vast interstate (see revenues H. R. Rep. No. 2002, 82d 2d Cong., Sess., 4, (1952)) would hard put today with say Court the Federal Club, Baseball case that only baseball was a local ex- hibition, not trade commerce. today big business that is packaged with

beer, with .broadcasting, and other industries. The beneficiaries of the Federal Baseball Club decision are not the Ruths, Ty Babe Cobbs, and Lou Gehrigs.

The owners, whose many records say pro- reveal a clivity for predatory practices, do not come to us with the; equities. The equities are with victims of the reserve I clause. use the word “victims” in the Sherman Act sense, since a contract which anyone forbids practice his calling is commonly called an unreasonable restraint' of trade.2 Gardella v. Chandler, 172 (CA2). F. 2d And Haywood see v. National Basketball Assn., 401 U. S. J., chambers). (Douglas,

If congressional inaction is our guide, we rely should upon the fact that Congress has refused to enact bills broadly exempting professional, sports from antitrust regulation.3 H. No, Rep. R. 2002, 82d Cong., 2d. Sess. 2 Had this same group boycott occurred in industry, another Klor’s, v. Broadway-Hale Inc. Stores, Inc., 207; 359 U. S. United Shubert, States v. 222; 348 U. S. sport, Haywood or even in another v. Assn., National Basketball 401 U. 1204 (Douglas, J., S. in cham bers) ; Badovich v. League, National Football 445; 352 U. S. United States Boxing Club, v. 236; 348 U. S. International we would have difficulty no in sustaining petitioner’s claim. upon congressional reliance 3 The Court’s disregards inaction Helvering Hallock, wisdom of v. 309 U. S. 119-121, where we said: “Nor does want of specific Congressional repudiations .. as .'serve implied an Congress instruction reconsider, to us not in the

light experience of new . . . those require decisions .... It would very persuasive enveloping Congressional circumstances silence to *25 by Con- granted exemption statutory only broadcasting rights. concerns sports professional

gress to broader a I not ascribe would 1291-1295. §§C. 15 U. S. fit seen Congress has than inaction through exemption explicitly. grant considering we “that were no doubt can be There slate” a clean upon first for the time baseball question regulation. federal subject to to be hold it would we League, 352 U. S. Football v. National ovich Rad not should Congress silence unbroken 452. The mistakes. own correcting our us from prevent Me. Justice Maeshall, .with whom Me. Justice dissenting joins, Brennan from player a majpr league

Petitioner was the Cincinnati with he a contract .1956, signed when with 12-year career until his Reds, 1969, When him from the obtained which had Cardinals, St. Louis Philadelphia to the ended and he was traded Reds, notice Phillies. He had no Cardinals were a to indicate contemplating trade, opportunity no no de- prefer he would playing, teams which formal .Philadelphia. receiving sire to After -go trade, petitioner notification of wrote Commissioner of that he' was not protesting re-examining . . debar this Court from its own doctrines. Various considerations, and-strategy might sug- parliamentary tactics they Congress, but would gested as reasons the inaction of . . .. try quicksand only when we be sufficient to indicate we walk corrective, controlling legal legislation in the absence find " principle.” Assn., South-Eastern Underwriters And see United States v. 533, 556-561. U. S. showing the time a full record gives us for the first This case operation. in actual reserve clause *26 piece

“a bought irrespective to be and sold property of my to urging right and that he had the wishes/'1 consider offers from other than teams the Phillies. He. requested major inform that the all the Commissioner league that he for the 1970 season. teams was available request His petitioner was was informed denied, and that he had no play Philadelphia but to choice play not to at all. that,

To non-athletes it was might appear petitioner' virtually by enslaved major the owners of league base- ball clubs who bartered for his serv- among themselves But, know ices. athletes that it' was not servitude that petitioner bound club it owners; was the reserve system. The system essence of that is that a player is bound to club he signs a first which contract. ‘ for the rest of his days.2 playing He escape cannot from the except by club retiring, he prevent cannot the club from assigning his any contract other club.

Petitioner brought this action in the United States District Court for the - Southern District of New York. He alleged, among other things, that system the reserve was an unreasonable restraint of trade violation of r 1Lette from Curt Flood to Kuhn, Bowie K. 24, 1969, Dec. App. 37. 2 As Mr. Justice Blackmun points out, system the reserve is not novel. It employed has been since Metropolitan 1887. See Ewing, Exhibition Co. v. (CC F. 202-204 1890). SDNY The club owners assert necessary that it is preserve effective compétition retain fan players interest. The agree do not argue that system overly reserve restrictive. Before this lawsuit instituted, players agree refused to the reserve system part should be a of the collective-bargaining contract. In stead, the players owners and agreed that, system the reserve would temporarily remain in they while .jointly effect investigated possible changes.. activity Their along these lines has pending halted t. outcome of this sui it thought The District Court federal laws.3 found self Court and prior bound decisions respondents Supp. for the a after full trial. F. -for the (1970). Appeals The United States Court We Second Circuit 443 F. 2d 264 affirmed. granted certiorari on 19, 1971, October U. S. precedents order to take further look relied at upon by the lower courts.

This is a difficult we are between case because torn principle of stare knowledge decisis and the League, decisions in Federal Baseball Club National v. *27 Yankees, 259 U. New York (1922), S. 200 and Toolson v. Inc., 346 (1953), totally U. S. 356 are at odds with inore recent and better reasoned cases.

In Club, Federal Baseball League a team in the Federal brought antitrust against an the National and action American Leagues and opinion others. In his for a unanimous Mr. Court, Justice Holmes wrote that.the business being considered was exhibitions of “giving base ball, purely which are state affairs.” 259 atS.,U. 208. Hence, the held Court that baseball was not within purview Thirty-one antitrust years laws. later, the Court reaffirmed this without re- decision, examining Toolson-, it, a one-páragraph per curiam opinion. Like this Toolson case, involved -an attack on the system. reserve The Court said:

-“The business ‘has . . . thirty years been' left for to develop,- on the understanding that it was not 3Petitioner alleged also a violation of laws, state antitrust state rights laws,'and civil law, of the common and claimed that he was forced peonage into and involuntary servitude in violation of the Thirteenth Amendment to the United States Constitution. Because I believe that federal govern antitrust laws baseball, I find .that state law has pre-empted been in this area. Like courts, the lower I do not believe that there has been a violation of the Thirteenth Amendment. (cid:127)

subject to existing legislation. pres- ent cases ask tous overrule prior and, .decision with retrospective effect, hold the legislation appli- cable. We think that if there are evils in this field which now warrant application to it of the antitrust laws it should legislation.” Id., at 357. Tpolson

Much more time passed has since and Con- gress has not We acted. now must decide whether to adhere to the reasoning of e., Toolson —i. to re- refuse examine the underlying basis Federal Baseball Club— proceed with a re-examination and let the chips fall they where may.

In his answer to petitioner’s complaint, the Commis sioner of Baseball “admits that under present concepts of interstate commerce defendants are engaged therein.” App. 40. There can .be no doubt admission is warranted by today’s reality. Since baseball is inter state if commerce, we re-examine baseball’s antitrust exemption, the Court’s decisions United States v. Shubert, 348 U. S. 222 (1955), States v. United Inter national Boxing Club, 348 U. S. 236 (1955), and Rado vich v. National Football League, 352 U. S. (1957), require that .we bring baseball within the coverage of *28 the laws. antitrust See also, Haywood v. National Basketball Assn., 401 U. S. 1204 J., in (Douglas, chambers). only

We.have recently had occasion to comment that: “Antitrust in laws general, and the Sherman Act in particular, are the Magna of Carta free enter- prise. They are important as to preservation the of economic freedom and our free-enterprise system as the Bill Rights is to protection the of. of our personal fundamental freedoms. . . . Implicit in such freedom is the notion that it cannot be fore- closed with respect to one sector of the economy believe groups or citizeiis private certain

because com that, greater promote might foreclosure such economy.” of the sector important more in a petition S. Inc., 405 U. Associates, Topco v. States United 596, 610 every citizen to laws importance to base important They are as be not minimized.

must lawyers, players, football they are as. players ball Base workers. of class any other doctors, members competition benefits denied cannot players ball interests economic other view owners club merely because says so. Congress unless important, being as more Federal in decisions our acquiesced Congress Has Had not. I think Toolson? Club the same consistent, sports and treated all been Court become have might Congress treated, was way was Court But, action. enough take concerned distinguished isolated inconsistent, and baseball refused .to Court In Toolson sports. from all other the Court -But been had silent. Congress because .act inaction. legislative this much read too have may into Per- sports. all they love as Americans love baseball we assume of athletics enamored haps we so become as legislators minds foremost they are that, there however, forget, not We must as fans. well What- players., league baseball major only some are able to muster been they might have muscle ever greatly has been athletes other forces with combining has iso- this Court in 'which by the manner impaired im- them that has made Court them. It lated error. correct its should and this Court potent, constructions prior our' overrule lightly do not We deny substantial errors when our but statutes, federal freely and effec- compete right like rights, federal guaranteed by ability of one’s as best tively *29 293 correct admit our error and laws, we must antitrust should so again have done and we do it. We so before Laboratories, Inc. v. g., Blonder-Tongue See, e. here. Foundation, (1971); 402 S. 313 University Illinois U. of Union, Retail Markets, 235, v. Clerks 398 U. S. Boys Inc. (1970).4 241 any reliance over

To the that there concern extent they can be satis- may assert, interests that club owners . only. Baseball by prospective

fied our decision making beginning with should be covered the antitrust laws henceforth, Congress unless decides case and otherwise.5 I Federal Baseball Club would overrule

Accordingly, of and Toolson the decision of the Court and reverse Appeals.6 . necessarily petitioner This does not mean that would '

prevail, however. is a hurdle Lurking background vintage petitioner recent still must overcome. 4 hesitated, past change In the this Court its view as to' has not Compare States v. what constitutes interstate commerce. United Knight Co., (1895), 1 Mandeville Island Farms v. 156 U. S. Crystal Sugar Co., (1948), American 334 U. S. and United States 219 Darby, (1941). v. 100 U. S. 312 jurist 'public in, acceptance “The concerned with confidence judicial system’ might that, well consider however admirable was, its resolute contrary adherence to the law as it a decision public justice is, operates, sense of as it ¡known, so far as it is dimmish respect for the courts Szanton, law itself.” Stare Decisis; View, A Dissenting (1959). 10 Hastings 394, L. J. 397 5 recently said cases, We construing rare decisions “[i]n might effect, federal statutes be denied full retroactive as for instance where this Court overrules its own construction of statute- S, Donnelly, (1970). United States v. Estate Cf. U. Simpson California; v. Union Oil Co. 377 U. S. question whether, assuming The lower courts did not reach the they This should be apply, laws have been violated. considered on remand.

In' the 1966, Major Players League Association formed. It is the representative collective-bargaining major for all league players. Respondents argue system reserve part parcel now of the collective-bargaining agreement and that because it mandatory is a subject of labor federal bargaining, are applicable, statutes not the federal antitrust laws.7 The lower courts did not rule on this argument, having antitrust, solely decided 'the case on the basis of the n exemption. faced, This Court has between interrelationship the antitrust laws and the laws The deci labor before. sions make several things clear. First, “benefits to organized labor cannot be cat’s-paw as a pull utilized employer’s out of fires.” United chestnuts the antitrust States v. Sportswear Women’s Assn., 336 Manufacturers . U. S. 464 (1949) Bradley Allen Co. See also. v. Union No. Local 325 (1945). S. 797 Second, U. the very nature of a collective-bargaining agreement mandates that the parties be .able to “restrain” trade to á greater degree than management uni could do laterally. United States Hutcheson, v. 312 219 U. S. (1941); United Mine Workers Pennington, 381 U. S. v. Amalgamated Meat Tea, Cutters v. Jewel (1965); 381 U. S. 676 (1965); v, Oliver, cf., Teamsters Union S. 283 U. (1959). Finally, it is clear that some cases can be only by resolved purposes examining the and the competing interests of labor and antitrust . statutes and striking a balance It is apparent that none óf prior precisely cases is in point. They involve union-management agreements that work to the detriment of management’s competitors. In this petitioner case, urges that system the reserve works to the detriment of labor.

7 Cf. United States v. Hutcheson, U. S. 219 the col- concerning trial at there was While evidence issues parties, relationship lective-bargaining fully ex- relationship have not been surrounding that this case commentary has suggested, one plored. As for the institu- implications litigated been “has dimly only bargaining perceived. tion of collective case— in the corners law have labor been issues them— reach example, did below, the courts not guest like an uninvited out of the shadows moving decide either embrace party whom one can’t at expel.” *31 League, Football Radovich v. National that in It is true stat- federal supra, rejected the that labor Court a claim professional relationship between a governed utes examination professional sport. But, an athlete and that of the briefs and record in that case indicates again is once squarely issue was not faced. issue clearly before this without focused. It being Court should, therefore, subject inquiry be the of further in the District Court.

There is appeal respondents’ a surface argument that petitioner’s remedy sole lies in claim filing a the National Board, Labor Relations this argument but premised on the notion and labor management that have agreed to accept the reserve clause. This notion ' is contradicted, by in part, the record in this case. Peti- tioner suggests system reserve upon was thrust the players by the recently owners and that formed players’ union modify has not had time to or eradicate If it. true, this is the question arises as to whether there any would then be exemption from laws Petitioner also suggests case. there are limits Winter, Principles & Antitrust Bargaining Jacobs. and Collective Superstars Peonage, Athletes: Of 81 Yale L. J. manage- to which labor and antitrust violations be explored. can should also limits agree. ment These I In would remand this light considerations, of these casé to District for of whether Court consideration the. petitioner can state a claim under the antitrust laws despite collective-bargaining and, so, if agreement, there a determination whether has been anti- an trust violation this case.

Case Details

Case Name: Flood v. Kuhn
Court Name: Supreme Court of the United States
Date Published: Jun 19, 1972
Citation: 407 U.S. 258
Docket Number: 71-32
Court Abbreviation: SCOTUS
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