All Theses, Dissertations, and Capstone Projects
Year of Award
1995
Degree
Master of Business Administration (MBA)
College
College of Business & Professional Studies
Degree Program
Master of Business Administration
Department
Business Administration
Keywords
players, antitrust, revenues, owners, stadiums
Document Type
Restricted Thesis
Recommended Citation
Shadowens, Chris, "Law and Economics in Professional Sports as it Applies to Major League Baseball" (1995). All Theses, Dissertations, and Capstone Projects. 178.
https://griffinshare.fontbonne.edu/all-etds/178
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Comments
In 1922, the Supreme Court ruled that professional baseball was an "exhibition," not a business, and as such was exempt from antitrust laws. In 1965 the players union was formed and existed in that form until 1976. At that time, under the reserve clause, when a player signed a contract, he belonged to that owner for life. Because of the antitrust exemption the owners had total control. In the 1980s owners resorted to collusion to combat rising salaries. However, this has been a constant battle with the players' union. As a result, since 1972 there have been more work stoppages in baseball than in all other professional sports combined. The last eight labor negotiations have led to strikes or lockouts. Contrary to what the Supreme Court held in 1922, Major League Baseball is a business - big business, and should be held to the same laws that apply to other sports and other businesses. The purpose of this research paper is to address these issues as well as other related issues. In the attempt, I will address the history of Major League Baseball, economic issues, problems, and possible solutions.