According to the MLBPA's amicus curiae brief, the exemption continues to have a negative impact on Minor League players and communities.
The Major League Baseball Players Association (MLBPA) has filed a petition for a Writ of Certiorari to the United States Court of Appeals for the Second Circuit, arguing for the elimination of the baseball exemption. The exemption currently allows Major League Baseball and its clubs to engage in anticompetitive agreements that limit the number of Minor League affiliates.
In their petition, the MLBPA states that the exemption has led to significant harm for Minor League clubs and their supporting communities. In 2020, Major League Baseball took control over previously independent Minor Leagues and decided that each Major League Club would have exactly four Minor League affiliates. This resulted in the disaffiliation of around 40 Minor League clubs, leading to fewer job opportunities for Minor League players and negative effects on communities.
The petition also highlights the fact that although the Curt Flood Act eliminated the baseball exemption in the market for Major League player services, the exemption still impacts Minor League players in the labor market. The Court's decision in Brown vs. the NFL established a "nonstatutory" antitrust exemption that applies to restraints in the labor market under certain conditions. However, under the current exemption, Major League Baseball can still engage in anticompetitive conduct affecting Minor League players.
The MLBPA warns that while there is a collective bargaining agreement in place that prevents Major League Baseball from further contraction of Minor League affiliates until December 2027, Major League Baseball has refused to commit beyond that point. This uncertainty creates a potential for further reductions in Minor League affiliates and additional negative effects on players and communities.
The petition emphasizes the broader ramifications of overturning the exemption, including labor market dynamics and community engagement with the sport. If the Court decides to eliminate the exemption, it could establish a legal framework that promotes fair competition and labor practices across the sport.
