Two Washington senators want to yank MLB’s antitrust exemption

Most of the exemption has eroded over the years

Senators Take Aim at Baseball’s Legal Shield

In what could be filed under the “Washington has nothing better to do” category, two U.S. Senators want to reopen one of sports’ oldest legal debates. Utah Republican Mike Lee and New Jersey Democrat Cory Booker have renewed calls to revoke Major League Baseball’s antitrust exemption. The move targets a legal protection that many critics argue no longer fits the modern sports business. Lee and Booker frame their effort as a matter of restoring fair competition to America’s pastime.

Lee, who chairs the Senate Judiciary Subcommittee on Antitrust, Competition Policy, and Consumer Rights, argues that baseball should operate under the same laws as every other American business. He claims MLB understands competition better than most industries and should therefore embrace it fully. Booker echoed that sentiment, saying baseball has enjoyed a “free pass” for far too long. Both senators suggest the exemption allows MLB to bend or break competition rules without consequence.

How Baseball Got Its Exemption

The roots of baseball’s unique legal status stretch back more than a century. In 1922, the U.S. Supreme Court ruled that Major League Baseball was not subject to federal antitrust laws. Chief Justice Oliver Wendell Holmes authored the opinion, declaring that baseball was a sport rather than an interstate business. That decision gave MLB a sweeping exemption that no other major professional league fully enjoys today.

The ruling stemmed from a lawsuit involving the Federal League and its Baltimore Terrapins franchise. After the Federal League collapsed in 1915, the Terrapins’ ownership sued the National and American Leagues. They argued the established leagues destroyed their business and failed to compensate them fairly. The case worked its way to the Supreme Court, where MLB prevailed.

Holmes famously wrote that baseball involved “personal effort, not related to production,” and therefore did not constitute interstate commerce. That logic ignored an obvious reality. Teams routinely crossed state lines to play games. Fans paid money. Owners profited. The sport operated as a business then, just as it does now.

A Ruling That Never Aged Well

Even at the time, the decision raised eyebrows. In the modern era, it looks absurd. Baseball generates billions of dollars annually through ticket sales, sponsorships, media rights, and merchandise. The idea that it exists outside interstate commerce no longer holds water. Many legal scholars believe the Supreme Court simply got it wrong.

Over the years, Congress and the courts have chipped away at MLB’s exemption. Labor relations and franchise relocation now face antitrust scrutiny. Still, the core exemption remains intact, setting baseball apart from the NFL, NBA, and NHL. Ironically, the Sports Broadcasting Act of 1961 grants all major leagues a limited antitrust exemption for negotiating national television contracts. That law already places MLB on similar footing with its peers in one of its most lucrative areas.

A Debate That Refuses to Die

Lee and Booker’s effort may gain headlines, but the practical impact remains uncertain. Baseball’s exemption no longer carries the sweeping power many believe it does. Still, the symbolism matters. The debate highlights how outdated legal reasoning continues to shape a modern, multibillion-dollar industry.

Baseball is not just a game. It never was. It is a business, and it always has been. More than a century later, lawmakers continue to wrestle with a ruling that never matched reality. and eventually it got to the Supreme Court and baseball got an antitrust exemption because it was a game not an interstate business even though the Brooklyn, New York Dodgers could play the Cincinnati, Ohio Reds in what was clearly an interstate business. Justice Holmes wrote that “personal effort, not related to production, is not a subject of commerce” and that baseball therefore wasn’t subject to federal regulation. Baseball on all levels is a business. More than a century ago, the Supreme Court got it all wrong.

Evan Weiner’s books are available at iTunes – https://books.apple.com/us/author/evan-weiner/id595575191

Evan can be reached at evan_weiner@hotmail.com