FLOOD v. KUHN ET AL.
No. 71-32
SUPREME COURT OF THE UNITED STATES
407 U.S. 258; 92 S. Ct. 2099; 32 L. Ed. 2d 728; 1972 U.S. LEXIS 138; 1972 Trade Cas. (CCH)
P74,041
March 20, 1972, Argued
June 19, 1972, Decided
PRIOR HISTORY:
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT.
DISPOSITION: 443 F.2d 264, affirmed.
JUDGES: Blackmun, J., delivered the opinion of the Court, in which Stewart and
Rehnquist, JJ., joined, and in all but Part I of which Burger, C. J., and White, J.,
joined. Burger, C. J., filed a concurring opinion, post, p. 285. Douglas, J., post, p.
286, and Marshall, J., post, p. 288, filed dissenting opinions, in which Brennan, J.,
joined. Powell, J., took no part in the consideration or decision of the case.
OPINION: MR. JUSTICE BLACKMUN delivered the opinion of the Court.
For the third time in 50 years the Court is asked specifically to rule
that professional baseball's reserve system is within the reach of the federal antitrust
laws.1 Collateral issues of state law and of federal
labor policy are also advanced.
The Game
It is a century and a quarter since the New York Nine defeated the Knickerbockers 23 to 1
on Hoboken's [*261] Elysian Fields June 19, 1846, with Alexander Jay
Cartwright as the instigator and the umpire. The teams were amateur, but the contest
marked a significant date in baseball's beginnings. That early game 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. With only one Cincinnatian on the payroll, this professional team traveled over
11,000 miles that summer, winning 56 games and tying one. Shortly thereafter, on St.
Patrick's Day in 1871, the National Association of Professional Baseball Players was
founded and the professional league was born.
The ensuing colorful days 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 competition under the leadership of Al Spalding and with Cap
Anson at third base; the formation of the American Association and then of the Union
Association in the 1880's; the introduction of Sunday baseball; interleague warfare with
cut-rate admission prices and player raiding; the development of the reserve
"clause"; the emergence in 1885 of the Brotherhood of Professional Ball Players,
and in 1890 of the Players League; the appearance of the American League, or "junior
circuit," in 1901, rising from the minor Western Association; the first World Series
in 1903, disruption in 1904, and the Series' resumption in 1905; the short-lived Federal
League on the majors' scene during World War I years; the troublesome and discouraging
episode of the 1919 Series; the home run ball; the shifting of franchises; the expansion
of the leagues; the installation in 1965 of the major league draft of potential new
players; and the formation of the Major League Baseball Players Association in 1966.
Then there are the many names, celebrated for one reason or another, that have sparked the
diamond and its environs and that have provided tinder for recaptured thrills, for
reminiscence and comparisons, and for conversation and anticipation in-season and
off-season: Ty Cobb, Babe Ruth, Tris Speaker, Walter Johnson, Henry Chadwick, Eddie
Collins, Lou Gehrig, Grover Cleveland Alexander, Rogers Hornsby, Harry Hooper, Goose
Goslin, Jackie Robinson, Honus Wagner, Joe McCarthy, John McGraw, Deacon Phillippe, Rube
Marquard, Christy Mathewson, Tommy Leach, Big Ed Delahanty, Davy Jones, Germany Schaefer,
King Kelly, Big Dan Brouthers, Wahoo Sam Crawford, Wee Willie Keeler, Big Ed Walsh, Jimmy
Austin, Fred Snodgrass, Satchel Paige, Hugh Jennings, Fred Merkle, Iron Man McGinnity,
Three-Finger Brown, Harry and Stan Coveleski, Connie Mack, Al Bridwell, Red Ruffing, Amos
Rusie, Cy Young, Smokey Joe Wood, Chief Meyers, Chief Bender, Bill Klem, Hans Lobert,
Johnny Evers, Joe Tinker, Roy Campanella, Miller Huggins, Rube Bressler, Dazzy Vance, Edd
Roush, Bill Wambsganss, Clark Griffith, Branch Rickey, Frank Chance, Cap Anson, Nap
Lajoie, Sad Sam Jones, Bob O'Farrell, Lefty O'Doul, Bobby Veach, Willie Kamm, Heinie Groh,
Lloyd and Paul Waner, Stuffy McInnis, Charles Comiskey, Roger Bresnahan, Bill Dickey, Zack
Wheat, George Sisler, Charlie Gehringer, Eppa Rixey, Harry Heilmann, Fred Clarke, Dizzy
Dean, Hank Greenberg, Pie Traynor, Rube Waddell, Bill Terry, Carl Hubbell, Old Hoss
Radbourne, Moe Berg, Rabbit Maranville, Jimmie Foxx, Lefty Grove. The list seems endless.
And one recalls the appropriate reference to the "World
Serious," attributed to Ring Lardner, Sr.; Ernest L. Thayer's "Casey at the
Bat";2 the ring of " Tinker to Evers to
Chance";3 and all the other happenings, habits, and
superstitions about and around baseball that made it the "national pastime" or,
depending upon the point of view, "the great American tragedy."
II
The Petitioner
The petitioner, Curtis Charles Flood, born in 1938, began his major league career in 1956
when he signed a contract with the Cincinnati Reds for a salary of $ 4,000 for the season.
He had no attorney or agent to advise him on that occasion. He was traded to the St. Louis
Cardinals before the 1958 season. Flood rose to fame as a center fielder with the
Cardinals during the years 1958-1969. In those 12 seasons he compiled a batting average of
.293. His best offensive season was 1967 when he achieved .335. He was .301 or better in
six of the 12 St. Louis years. 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 the highest lifetime
fielding averages.
Flood's St. Louis compensation for the years shown was:
1961 | $ 13,500 (including a bonus for signing) |
1962 | $ 16,000 |
1963 | $ 17,500 |
1964 | $ 23,000 |
1965 | $ 35,000 |
1966 | $ 45,000 |
1967 | $ 50,000 |
1968 | $ 72,500 |
1969 | $ 90,000 |
These figures do not include any so-called fringe benefits or World Series shares.
But at the age of 31, in October 1969, Flood was traded to the Philadelphia Phillies of
the National League in a multi-player transaction. He was not consulted about the trade.
He was informed by telephone and received formal notice only after the deal had been
consummated. In December he complained to the Commissioner of Baseball and asked that he
be made a free agent and be placed at liberty to strike his own bargain with any other
major league team. His request was denied.
Flood then instituted this antitrust suit in January 1970 in federal court for the
Southern District of New York. The defendants (although not all were named in each cause
of action) were the Commissioner of Baseball, the presidents of the two major leagues, and
the 24 major league clubs. In general, the complaint charged violations of the federal
antitrust laws and civil rights statutes, violation of state statutes and the common law,
and the imposition of a form of peonage and involuntary servitude contrary to the
Thirteenth Amendment and 42 U. S. C. § 1994, 18 U. S. C. § 1581, and 29 U. S. C. §§
102 and 103. Petitioner sought declaratory and injunctive relief and treble damages.
Flood declined to play for Philadelphia in 1970, despite a $ 100,000 salary offer, and he
sat out the year. After the season was concluded, Philadelphia sold its rights to Flood to
the Washington Senators. Washington and the petitioner were able to come to terms for 1971
at a salary of $ 110,000. Flood started the season but, apparently because he was
dissatisfied with his performance, he left the Washington club on April 27, early in the
campaign. He has not played baseball since then.
III
The Present Litigation
Judge Cooper, in a detailed opinion, first denied a preliminary injunction, 309 F.Supp.
793 (SDNY 1970), observing on the way:
"Baseball has been the national pastime for over one hundred years and enjoys a
unique place in our American heritage. Major league professional baseball is avidly
followed by millions of fans, looked upon with fervor and pride and provides a special
source of inspiration and competitive team spirit especially for the young.
"Baseball's status in the life of the nation is so pervasive that it would not strain
credulity to say the Court can take judicial notice that baseball is everybody's business.
To put it mildly and with restraint, it would be unfortunate indeed if a fine sport and
profession, which brings surcease from daily travail and an escape from the ordinary to
most inhabitants of this land, were to suffer in the least because of undue concentration
by any one or any group on commercial and profit considerations. The game is on higher
ground; it behooves every one to keep it there." 309 F.Supp., at 797.
Flood's application for an early trial was granted. The court next deferred until trial
its decision on the defendants' motions to dismiss the primary causes of action, but
granted a defense motion for summary judgment on an additional cause of action. 312
F.Supp. 404 (SDNY 1970).
Trial to the court took place in May and June 1970. An extensive record was developed. In
an ensuing opinion, 316 F.Supp. 271 (SDNY 1970), Judge Cooper first noted that:
"Plaintiff's witnesses in the main concede that some form of reserve on players is a
necessary element of the organization of baseball as a league sport, but contend that the
present all-embracing system is needlessly restrictive and offer various alternatives
which in their view might loosen the bonds without sacrifice to the game. . . .
. . . .
"Clearly the preponderance of credible proof does not favor elimination of the
reserve clause. With the sole exception of plaintiff himself, it shows that even
plaintiff's witnesses do not contend that it is wholly undesirable; in fact they regard
substantial portions meritorious. . . ." 316 F.Supp., at 275-276.
He then held that Federal Baseball Club v. National League, 259 U.S. 200
(1922), and Toolson v. New York Yankees, Inc., 346 U.S. 356 (1953), were
controlling; that it was not necessary to reach the issue whether exemption from the
antitrust laws would result because aspects of baseball now are a subject of collective
bargaining; that the plaintiff's state-law claims, those based on common law as well as on
statute, were to be denied because baseball was not "a matter which admits of
diversity of treatment," 316 F.Supp., at 280; that the involuntary servitude claim
failed because of the absence of "the essential element of this cause of action, a
showing of compulsory service," 316 F.Supp., at 281-282; and that judgment was to be
entered for the defendants. Judge Cooper included a statement of personal conviction to
the effect that "negotiations could produce an accommodation on the reserve system
which would be eminently fair and equitable to all concerned" and that "the
reserve clause can be fashioned so as to find acceptance by player and club." 316
F.Supp., at 282 and 284.
On appeal, the Second Circuit felt "compelled to affirm." 443
F.2d 264, 265 (1971). It regarded the issue of state law as one of first impression, but
concluded that the Commerce Clause precluded its application. Judge Moore added a
concurring opinion in which he predicted, with respect to the suggested overruling of Federal
Baseball and Toolson, that "there is no likelihood that such an event will
occur."4 443 F.2d, at 268, 272.
We granted certiorari in order to look once again at this troublesome and unusual
situation. 404 U.S. 880 (1971).
IV
The Legal Background
A. Federal Baseball Club v. National League, 259 U.S. 200 (1922), was a suit
for treble damages instituted by a member of the Federal League (Baltimore) against the
National and American Leagues and others. The plaintiff obtained a verdict in the trial
court, but the Court of Appeals reversed. The main brief filed by the plaintiff with this
Court discloses that it was strenuously argued, among other things, that the business in
which the defendants were engaged was interstate commerce; that the interstate
relationship among the several clubs, located as they were in different States, was
predominant; that organized baseball represented an investment of colossal wealth; that it
was an engagement 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 distinguished
from the mere playing of the game as a sport for physical exercise and diversion. See also
259 U.S., at 201-206.
Mr. Justice Holmes, in speaking succinctly for a unanimous Court, said:
"The business is giving exhibitions of base ball, which are purely state affairs. . .
. But the fact that in order to give the exhibitions the Leagues must induce free persons
to cross state lines and must arrange and pay for their doing so is not enough to change
the character of the business. . . . The transport is a mere incident, not the essential
thing. That to which it is incident, the exhibition, although made for money would not be
called trade or commerce in the commonly accepted use of those words. As it is put by the
defendants, personal effort, not related to production, is not a subject of commerce. That
which in its consummation is not commerce does not become commerce among the States
because the transportation that we have mentioned takes place. To repeat the illustrations
given by the Court below, a firm of lawyers sending out a member to argue a case, or the
Chautauqua lecture bureau sending out lecturers, does not engage in such commerce because
the lawyer or lecturer goes to another State.
"If we are right the plaintiff's business is to be described in the
same way and the restrictions by contract that prevented the plaintiff from getting
players to break their bargains and the other conduct charged against the defendants were
not an interference with commerce among the States." 259 U.S., at 208-209.5
The Court thus chose not to be persuaded by opposing examples proffered by the plaintiff,
among them (a) Judge Learned Hand's decision on a demurrer to a Sherman Act complaint with
respect to vaudeville entertainers traveling a theater circuit covering several States, H.
B. Marienelli, Ltd. v. United Booking Offices, 227 F. 165 (SDNY 1914); (b) the
first Mr. Justice Harlan's opinion in International Textbook Co. v. Pigg,
217 U.S. 91 (1910), to the effect that correspondence courses pursued through the mail
constituted commerce among the States; and (c) Mr. Justice Holmes' own opinion, for
another unanimous Court, on demurrer in a Sherman Act case, relating to cattle shipment,
the interstate movement of which was interrupted for the finding of purchasers at the
stockyards, Swift & Co. v. United States, 196 U.S. 375 (1905). The only
earlier case the parties were able to locate where the question was raised whether
organized baseball was within the Sherman Act was American League Baseball Club v. Chase,
86 Misc. 441, 149 N. Y. S. 6 (1914). That court had answered the question in the negative.
B. Federal Baseball was cited a year later, and without disfavor, in another
opinion by Mr. Justice Holmes for a unanimous Court. The complaint charged antitrust
violations with respect to vaudeville bookings. It was held, however, that the claim was
not frivolous and that the bill should not have been dismissed. Hart v. B. F.
Keith Vaudeville Exchange, 262 U.S. 271 (1923).
It has also been cited, not unfavorably, with respect to the practice of law, United
States v. South-Eastern Underwriters Assn., 322 U.S. 533, 573 (1944) (Stone, C.
J., dissenting); with respect to out-of-state contractors, United States v. Employing
Plasterers Assn., 347 U.S. 186, 196-197 (1954) (Minton, J., dissenting); and upon a
general comparison reference, North American Co. v. SEC, 327 U.S. 686, 694
(1946).
In the years that followed, baseball continued to be subject to intermittent antitrust
attack. The courts, however, rejected these challenges on the authority of Federal
Baseball. In some cases stress was laid, although unsuccessfully, on new factors such
as the development of radio and television with their substantial additional revenues to
baseball. For the most part, however, the Holmes opinion was generally and necessarily
accepted as controlling authority. And in the 1952 Report of the Subcommittee on Study of
Monopoly Power of the House Committee on the Judiciary, H. R. Rep. No. 2002, 82d Cong., 2d
Sess., 229, it was said, in conclusion:
"On the other hand the overwhelming preponderance of the evidence established
baseball's need for some sort of reserve clause. Baseball's history shows that chaotic
conditions prevailed when there was no reserve clause. [Passage
A]: Experience points to no feasible substitute to protect the integrity of the game or to
guarantee a comparatively even competitive struggle. The evidence adduced at the
hearings would clearly not justify the enactment of legislation flatly condemning the
reserve clause."
C. The Court granted certiorari, 345 U.S. 963 (1953), in the Toolson, Kowalski, and
Corbett cases, cited in nn. 12 and 13, supra, and, by a short per curiam
(Warren, C. J., and Black, Frankfurter, DOUGLAS, Jackson, Clark, and Minton, JJ.),
affirmed the judgments of the respective courts of appeals in those three cases. Toolson
v. New York Yankees, Inc., 346 U.S. 356 (1953). Federal Baseball was cited
as holding "that the business of providing public baseball games for profit between
clubs of professional baseball players was not within the scope of the federal antitrust
laws," 346 U.S., at 357, and:
"Congress has had the ruling under consideration but has not seen fit to bring such
business under these laws by legislation having prospective effect. The business has thus
been left for thirty years to develop, on the understanding that it was not subject to
existing antitrust legislation. The present cases ask us to overrule the prior decision
and, with retrospective effect, hold the legislation applicable. We think that if there
are evils in this field which now warrant application to it of the antitrust laws it
should be by legislation. Without re-examination of the underlying issues, the judgments
below are affirmed on the authority of Federal Baseball Club of Baltimore v. National
League of Professional Baseball Clubs, supra, so far as that decision determines that
Congress had no intention of including the business of baseball within the scope of the
federal antitrust laws." Ibid.
This quotation reveals four reasons for the Court's affirmance of Toolson and its
companion cases: (a) Congressional awareness for three decades of the Court's ruling in Federal
Baseball, coupled with congressional inaction. (b) The fact that baseball was left
alone to develop for that period upon the understanding that the reserve system was not
subject to existing federal antitrust laws. (c) A reluctance to overrule Federal
Baseball with consequent retroactive effect. (d) A professed desire that any needed
remedy be provided by legislation rather than by court decree. The emphasis in Toolson
was on the determination, attributed even to Federal Baseball, that Congress had no
intention to include baseball within the reach of the federal antitrust laws. Two Justices
(Burton and Reed, JJ.) dissented, stressing the factual aspects, revenue sources, and the
absence of an express exemption of organized baseball from the Sherman Act. 346 U.S., at
357. The 1952 congressional study was mentioned. Id., at 358, 359, 361.
It is of interest to note that in Toolson the petitioner had argued flatly that Federal
Baseball "is wrong and must be overruled," Brief for Petitioner, No. 18, O.
T. 1953, p. 19, and that Thomas Reed Powell, a constitutional scholar of no small stature,
urged, as counsel for an amicus, that "baseball is a unique enterprise,"
Brief for Boston American League Base Ball Co. as Amicus Curiae 2, and that
"unbridled competition as applied to baseball would not be in the public
interest." Id., at 14.
D. United States v. Shubert, 348 U.S. 222 (1955), was a civil antitrust
action against defendants engaged in the production of legitimate theatrical attractions
throughout the United States and in operating theaters for the presentation of such
attractions. The District Court had dismissed the complaint on the authority of Federal
Baseball and Toolson. 120 F.Supp. 15 (SDNY 1953). This Court reversed. Mr.
Chief Justice Warren noted the Court's broad conception of "trade or commerce"
in the antitrust statutes and the types of enterprises already held to be within the reach
of that phrase. He stated that Federal Baseball and Toolson afforded no
basis for a conclusion that businesses built around the performance of local exhibitions
are exempt from the antitrust laws. 348 U.S., at 227. He then went on to elucidate the
holding in Toolson by meticulously spelling out the factors mentioned above:
"In Federal Baseball, the Court, speaking through Mr. Justice Holmes,
was dealing with the business of baseball and nothing else. . . . The travel, the Court
concluded, was 'a mere incident, not the essential thing.' . . .
. . . .
"In Toolson, where the issue was the same as in Federal Baseball, the
Court was confronted with a unique combination of circumstances. For over 30 years there
had stood a decision of this Court specifically fixing the status of the baseball business
under the antitrust laws and more particularly the validity of the so-called 'reserve
clause.' During this period, in reliance on the Federal Baseball precedent, the
baseball business had grown and developed. . . . And Congress, although it had actively
considered the ruling, had not seen fit to reject it by amendatory legislation. Against
this background, the Court in Toolson was asked to overrule Federal Baseball
on the ground that it was out of step with subsequent decisions reflecting present-day
concepts of interstate commerce. The Court, in view of the circumstances of the case,
declined to do so. But neither did the Court necessarily reaffirm all that was said in Federal
Baseball. Instead, 'without re-examination of the underlying issues,' the Court
adhered to Federal Baseball 'so far as that decision determines that Congress had
no intention of including the business of baseball within the scope of the federal
antitrust laws.' 346 U.S., at 357. In short, Toolson was a narrow application
of the rule of stare decisis.
". . . If the Toolson holding is to be expanded -- or contracted -- the
appropriate remedy lies with Congress." 348 U.S., at 228-230.
E. United States v. International Boxing Club, 348 U.S. 236 (1955), was a
companion to Shubert and was decided the same day. This was a civil antitrust
action against defendants engaged in the business of promoting professional championship
boxing contests. Here again the District Court had dismissed the complaint in reliance
upon Federal Baseball and Toolson. The Chief Justice observed that "if
it were not for Federal Baseball and Toolson, we think that it would be too
clear for dispute that the Government's allegations bring the defendants within the scope
of the Act." 348 U.S., at 240-241. He pointed out that the defendants relied on the
two baseball cases but also would have been content with a more restrictive interpretation
of them than the Shubert defendants, for the boxing defendants argued that the
cases immunized only businesses that involve exhibitions of an athletic nature. The Court
accepted neither argument. It again noted, 348 U.S., at 242, that "Toolson
neither overruled Federal Baseball nor necessarily reaffirmed all that was said in Federal
Baseball." It stated:
"The controlling consideration in Federal Baseball and Hart was,
instead, a 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 antitrust
laws. The issue confronting us is, therefore, not whether a previously granted exemption
should continue, but whether an exemption should be granted in the first instance.
And that issue is for Congress to resolve, not this Court." 348 U.S., at 243.
The Court noted the presence then in Congress of various bills forbidding the application
of the antitrust laws to "organized professional sports enterprises"; the
holding of extensive hearings on some of these; subcommittee opposition; a postponement
recommendation as to baseball; and the fact that "Congress thus left intact the
then-existing coverage of the antitrust laws." 348 U.S., at 243-244.
Mr. Justice Frankfurter, joined by Mr. Justice Minton, dissented. "It would baffle
the subtlest ingenuity," he said, "to find a single differentiating factor
between other sporting exhibitions . . . and baseball insofar as the conduct of the sport
is relevant to the criteria or considerations by which the Sherman Law becomes applicable
to a 'trade or commerce.'" 348 U.S., at 248. He went on:
"The Court decided as it did in the Toolson case as an application of the
doctrine of stare decisis. That doctrine is not, to be sure, an imprisonment of
reason. But neither is it a whimsy. It can hardly be that this Court gave a preferred
position to baseball because it is the great American sport. . . . If stare decisis
be one aspect of law, as it is, to disregard it in identic situations is mere caprice.
"Congress, on the other hand, may yield to sentiment and be capricious, subject only
to due process. . . .
"Between them, this case and Shubert illustrate that nice but rational
distinctions are inevitable in adjudication. I agree with the Court's opinion in Shubert
for precisely the reason that constrains me to dissent in this case." 348 U.S., at
249-250.
Mr. Justice Minton also separately dissented on the ground that boxing is not trade or
commerce. He added the comment that "Congress has not attempted" to control
baseball and boxing. 348 U.S., at 251, 253. The two dissenting Justices, thus, did not
call for the overruling of Federal Baseball and Toolson; they merely felt
that boxing should be under the same umbrella of freedom as was baseball and, as Mr.
Justice Frankfurter said, 348 U.S., at 250, they could not exempt baseball "to the
exclusion of every other sport different not one legal jot or tittle from it."
F. The parade marched on. Radovich v. National Football League, 352 U.S. 445
(1957), was a civil Clayton Act case testing the application of the antitrust laws to
professional football. The District Court dismissed. The Ninth Circuit affirmed in part on
the basis of Federal Baseball and Toolson. The court did not hesitate to
"confess that the strength of the pull" of the baseball cases and of International
Boxing "is about equal," but then observed that "football is a team
sport" and boxing an individual one. 231 F.2d 620, 622.
This Court reversed with an opinion by Mr. Justice Clark. He said that the Court made its
ruling in Toolson "because it was concluded that more harm would be done in
overruling Federal Baseball than in upholding a ruling which at best was of dubious
validity." 352 U.S., at 450. He noted that Congress had not acted. He then said:
"All this, combined with the flood of litigation that would follow its repudiation,
the harassment that would ensue, and the retroactive effect of such a decision, led the
Court to the practical result that it should sustain the unequivocal line of authority
reaching over many years.
"Since Toolson and Federal Baseball are still cited as controlling
authority in antitrust actions involving other fields of business, we now specifically
limit the rule there established to the facts there involved, i. e., the business
of organized professional baseball. As long as the Congress continues to acquiesce we
should adhere to -- but not extend -- the interpretation of the Act made in those cases. .
. .
"If this ruling is unrealistic, inconsistent, or illogical, it is sufficient to
answer, aside from the distinctions between the businesses, that were we considering the
question of baseball for the first time upon a clean slate we would have no doubts. But Federal
Baseball held the business of baseball outside the scope of the Act. No other business
claiming the coverage of those cases has such an adjudication. We, therefore, conclude
that the orderly way to eliminate error or discrimination, if any there be, is by
legislation and not by court decision. Congressional processes are more accommodative,
affording the whole industry hearings and an opportunity to assist in the formulation of
new legislation. The resulting product is therefore more likely to protect the industry
and the public alike. The whole scope of congressional action would be known long in
advance and effective dates for the legislation could be set in the future without the
injustices of retroactivity and surprise which might follow court action." 352 U.S.,
at 450-452 (footnote omitted).
Mr. Justice Frankfurter dissented essentially for the reasons stated in his dissent in International
Boxing, 352 U.S., at 455. Mr. Justice Harlan, joined by MR. JUSTICE BRENNAN, also
dissented because he, too, was "unable to distinguish football from baseball."
352 U.S., at 456. Here again the dissenting Justices did not call for the overruling of
the baseball decisions. They merely could not distinguish the two sports and, out of
respect for stare decisis, voted to affirm.
G. Finally, in Haywood v. National Basketball Assn., 401 U.S. 1204 (1971),
MR. JUSTICE DOUGLAS, in his capacity as Circuit Justice, reinstated a District Court's
injunction pendente lite in favor of a professional basketball player and said,
"Basketball . . . does not enjoy exemption from the antitrust laws." 401 U.S.,
at 1205.
H. This series of decisions understandably spawned extensive commentary, some of it mildly
critical and much of it not; nearly all of it looked to Congress for any remedy that might
be deemed essential.
I. Legislative proposals have been numerous and persistent. Since Toolson more than
50 bills have been introduced in Congress relative to the applicability or
nonapplicability of the antitrust laws to baseball. A few of these passed one house or the
other. Those that did would have expanded, not restricted, the reserve system's exemption
to other professional league sports. And the Act of Sept. 30, 1961, Pub. L. 87-331, 75
Stat. 732, and the merger addition thereto effected by the Act of Nov. 8, 1966, Pub. L.
89-800, § 6 (b), 80 Stat. 1515, 15 U. S. C. §§ 1291-1295, were also expansive rather
than restrictive as to antitrust exemption.
V
In view of all this, it seems appropriate now to say that:
1. Professional baseball is a business and it is engaged in interstate commerce.
2. With its reserve system enjoying exemption from the federal antitrust laws, baseball
is, in a very distinct sense, an exception and an anomaly. Federal Baseball and Toolson
have become an aberration confined to baseball.
3. Even though others might regard this as "unrealistic, inconsistent, or
illogical," see Radovich, 352 U.S., at 452, the aberration is an established
one, and one that has been recognized not only in Federal Baseball and Toolson,
but in Shubert, International Boxing, and Radovich, as well, a total of five
consecutive cases in 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 -- football, boxing, basketball,
and, presumably, hockey and golf -- are not so exempt.
5. The advent of radio and television, with their consequent increased coverage and
additional revenues, has not occasioned an overruling of Federal Baseball and Toolson.
6. The Court has emphasized that since 1922 baseball, with full and continuing
congressional awareness, has been allowed to develop and to expand unhindered by federal
legislative action. Remedial legislation has been introduced repeatedly in Congress but
none has ever been enacted. The Court, accordingly, has concluded that Congress as yet has
had no intention to subject baseball's reserve system to the reach of the antitrust
statutes. This, obviously, has been deemed to be something other than mere congressional
silence and passivity. Cf. Boys Markets, Inc. v. Retail Clerks Union, 398
U.S. 235, 241-242 (1970).
7. The Court has expressed concern about the confusion and the retroactivity problems that
inevitably would result with a judicial overturning of Federal Baseball. It has
voiced a preference that if any change is to be made, it come by legislative action that,
by its nature, is only prospective in operation.
8. The Court noted in Radovich, 352 U.S., at 452, that the slate with respect to
baseball is not clean. Indeed, it has not been clean for half a century.
This emphasis and this concern are still with us. We continue to be loath, 50 years after Federal
Baseball and almost two decades after Toolson, to overturn those cases
judicially when Congress, by its positive inaction, has allowed those decisions to stand
for so long and, far beyond mere inference and implication, has clearly evinced a desire
not to disapprove them legislatively.
Accordingly, we adhere once again to Federal Baseball and Toolson and to
their application to professional baseball. We adhere also to International Boxing
and Radovich and to their respective applications to professional boxing and
professional football. If there is any inconsistency or illogic in all this, it is an
inconsistency and illogic of long standing that is to be remedied by the Congress and not
by this Court. If we were to act otherwise, we would be withdrawing from the conclusion as
to congressional intent made in Toolson and from the concerns as to retrospectivity
therein expressed. Under these circumstances, there is merit in consistency even though
some might claim that beneath that consistency is a layer of inconsistency.
The petitioner's argument as to the application of state antitrust laws deserves a word.
Judge Cooper rejected the state law claims because state antitrust regulation would
conflict with federal policy and because national "uniformity [is required] in any
regulation of baseball and its reserve system." 316 F.Supp., at 280. The Court of
Appeals, in affirming, stated, "As the burden on interstate commerce outweighs the
states' interests in regulating baseball's reserve system, the Commerce Clause precludes
the application here of state antitrust law." 443 F.2d, at 268. As applied to
organized baseball, and in the light of this Court's observations and holdings in Federal
Baseball, in Toolson, in Shubert, in International Boxing, and in
Radovich, and despite baseball's allegedly inconsistent position taken in the past
with respect to the application of state law, these statements adequately dispose of the
state law claims.
The conclusion we have reached makes it unnecessary for us to consider the respondents'
additional argument that the reserve system is a mandatory subject of collective
bargaining and that federal labor policy therefore exempts the reserve system from the
operation of federal antitrust laws.
We repeat for this case what was said in Toolson:
"Without re-examination of the underlying issues, the [judgment] below [is] affirmed
on the authority of Federal Baseball Club of Baltimore v. National League of
Professional Baseball Clubs, supra, so far as that decision determines that Congress
had no intention of including the business of baseball within the scope of the federal
antitrust laws." 346 U.S., at 357.
And what the Court said in Federal Baseball in 1922 and what it said in Toolson
in 1953, we say again here in 1972: the remedy, if any is indicated, is for congressional,
and not judicial, action.
The judgment of the Court of Appeals is
Affirmed.
MR. JUSTICE WHITE joins in the judgment of the Court, and in all but Part I of the Court's
opinion.
MR. JUSTICE POWELL took no part in the consideration or decision of this case.
CONCUR: MR. CHIEF JUSTICE BURGER, concurring.
I concur in all but Part I of the Court's opinion but, like MR. JUSTICE DOUGLAS, I have
grave reservations as to the correctness of Toolson v. New York Yankees, Inc.,
346 U.S. 356 (1953); as he notes in his dissent, he joined that holding but has
"lived to regret it." The error, if such it be, is one on which the affairs of a
great many people have rested for a long time. Courts are not the forum in which this
tangled web ought to be unsnarled. I agree with MR. JUSTICE DOUGLAS that congressional
inaction is not a solid base, but the least undesirable course now is to let the matter
rest with Congress; it is time the Congress acted to solve this problem.
DISSENT: MR. JUSTICE DOUGLAS, with whom MR. JUSTICE BRENNAN concurs, dissenting.
This Court's decision in Federal Baseball Club v. National
League, 259 U.S. 200, made in 1922, is a derelict in the stream of the law that we,
its creator, should remove. Only a romantic view6 of a rather
dismal business account over the last 50 years would keep that derelict in midstream.
In 1922 the Court had a narrow, parochial view of commerce. With the demise of the old
landmarks of that era, particularly United States v. Knight Co., 156 U.S. 1,
Hammer v. Dagenhart, 247 U.S. 251, and Paul v. Virginia, 8
Wall. 168, the whole concept of commerce has changed.
Under the modern decisions such as Mandeville Island Farms v. American Crystal
Sugar Co., 334 U.S. 219; United States v. Darby, 312 U.S. 100; Wickard
v. Filburn, 317 U.S. 111; United States v. South-Eastern Underwriters
Assn., 322 U.S. 533, the power of Congress was recognized as broad enough to reach all
phases of the vast operations of our national industrial system. An industry so dependent
on radio and television as is baseball and gleaning vast interstate revenues (see H. R.
Rep. No. 2002, 82d Cong., 2d Sess., 4, 5 (1952)) would be hard put today to say with the
Court in the Federal Baseball Club case that baseball was only a local exhibition,
not trade or commerce.
Baseball is today big business that is packaged with beer, with broadcasting, and with
other industries. The beneficiaries of the Federal Baseball Club decision are not
the Babe Ruths, Ty Cobbs, and Lou Gehrigs.
The owners, whose records many say reveal a proclivity for predatory
practices, do not come to us with equities. The equities are with the victims of the
reserve clause. I use the word "victims" in the Sherman Act sense, since a
contract which forbids anyone to practice his calling is commonly called an unreasonable
restraint of trade.7 Gardella v. Chandler, 172
F.2d 402 (CA2). And see Haywood v. National Basketball Assn., 401 U.S. 1204
(DOUGLAS, J., in chambers).
If congressional inaction is our guide, we should rely upon the fact that
Congress has refused to enact bills broadly exempting professional sports from antitrust
regulation.8 H. R. Rep. No. 2002, 82d Cong., 2d Sess. (1952).
The only statutory exemption granted by Congress to professional sports concerns
broadcasting rights. 15 U. S. C. §§ 1291-1295. I would not ascribe a broader exemption
through inaction than Congress has seen fit to grant explicitly.
There can be no doubt "that were we considering the question of baseball for the
first time upon a clean slate" we would hold it to be subject to federal antitrust
regulation. Radovich v. National Football League, 352 U.S. 445, 452. The
unbroken silence of Congress should not prevent us from correcting our own mistakes.
MR. JUSTICE MARSHALL, with whom MR. JUSTICE BRENNAN joins, dissenting.
Petitioner was a major league baseball player from 1956, when he signed a contract with
the Cincinnati Reds, until 1969, when his 12-year career with the St. Louis Cardinals,
which had obtained him from the Reds, ended and he was traded to the Philadelphia
Phillies. He had no notice that the Cardinals were contemplating a trade, no opportunity
to indicate the teams with which he would prefer playing, and no desire to go to
Philadelphia. After receiving formal notification of the trade, petitioner wrote to the
Commissioner of Baseball protesting that he was not "a piece of property to be bought
and sold irrespective of my wishes," and urging that he had the right to consider
offers from other teams than the Phillies. He requested that the Commissioner inform all
of the major league teams that he was available for the 1970 season. His request was
denied, and petitioner was informed that he had no choice but to play for Philadelphia or
not to play at all.
To non-athletes it might appear that petitioner was virtually enslaved by
the owners of major league baseball clubs who bartered among themselves for his services.
But, athletes know that it was not servitude that bound petitioner to the club owners; it
was the reserve system. The essence of that system is that a player is bound to the club
with which he first signs a contract for the rest of his playing days.9
He cannot escape from the club except by retiring, and he cannot prevent the club from
assigning his contract to any 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 the reserve system was an
unreasonable restraint of trade in violation of federal antitrust laws. The District Court
thought itself bound by prior decisions of this Court and found for the respondents after
a full trial. 309 F.Supp. 793 (1970). The United States Court of Appeals for the Second
Circuit affirmed. 443 F.2d 264 (1971). We granted certiorari on October 19, 1971, 404 U.S.
880, in order to take a further look at the precedents relied upon by the lower courts.
This is a difficult case because we are torn between the principle of stare decisis
and the knowledge that the decisions in Federal Baseball Club v. National League,
259 U.S. 200 (1922), and Toolson v. New York Yankees, Inc., 346 U.S. 356
(1953), are totally at odds with more recent and better reasoned cases.
In Federal Baseball Club, a team in the Federal League brought an antitrust action
against the National and American Leagues and others. In his opinion for a unanimous
Court, Mr. Justice Holmes wrote that the business being considered was "giving
exhibitions of base ball, which are purely state affairs." 259 U.S., at 208. Hence,
the Court held that baseball was not within the purview of the antitrust laws. Thirty-one
years later, the Court reaffirmed this decision, without re-examining it, in Toolson,
a one-paragraph per curiam [delivered via an opinion issued in the name of
the Court rather than specific justices] opinion. Like this case, Toolson
involved an attack on the reserve system. The Court said:
"The business has . . . been left for thirty years to develop, on the understanding
that it was not subject to existing antitrust legislation. The present cases ask us to
overrule the prior decision and, with retrospective effect, hold the legislation
applicable. We think that if there are evils in this field which now warrant application
to it of the antitrust laws it should be by legislation." Id., at 357.
Much more time has passed since Toolson and Congress has not acted. We must now
decide whether to adhere to the reasoning of Toolson -- i. e., to refuse to
re-examine the underlying basis of Federal Baseball Club -- or to proceed with a
re-examination and let the chips fall where they may.
In his answer to petitioner's complaint, the Commissioner of Baseball "admits that
under present concepts of interstate commerce defendants are engaged therein." App.
40. There can be no doubt that the admission is warranted by today's reality. Since
baseball is interstate commerce, if we re-examine baseball's antitrust exemption, the
Court's decisions in United States v. Shubert, 348 U.S. 222 (1955), United
States v. International Boxing Club, 348 U.S. 236 (1955), and Radovich
v. National Football League, 352 U.S. 445 (1957), require that we bring baseball
within the coverage of the antitrust laws. See also, Haywood v. National
Basketball Assn., 401 U.S. 1204 (DOUGLAS, J., in chambers).
We have only recently had occasion to comment that:
"Antitrust laws in general, and the Sherman Act in particular, are the Magna Carta of
free enterprise. They are as important to the preservation of economic freedom and our
free-enterprise system as the Bill of Rights is to the protection of our fundamental
personal freedoms. . . . Implicit in such freedom is the notion that it cannot be
foreclosed with respect to one sector of the economy because certain private citizens or
groups believe that such foreclosure might promote greater competition in a more important
sector of the economy." United States v. Topco Associates, Inc., 405
U.S. 596, 610 (1972).
The importance of the antitrust laws to every citizen must not be minimized. They are as
important to baseball players as they are to football players, lawyers, doctors, or
members of any other class of workers. Baseball players cannot be denied the benefits of
competition merely because club owners view other economic interests as being more
important, unless Congress says so.
Has Congress acquiesced in our decisions in Federal Baseball Club and Toolson?
I think not. Had the Court been consistent and treated all sports in the same way baseball
was treated, Congress might have become concerned enough to take action. But, the Court
was inconsistent, and baseball was isolated and distinguished from all other sports. In Toolson
the Court refused to act because Congress had been silent. But the Court may have read too
much into this legislative inaction.
Americans love baseball as they love all sports. Perhaps we become so enamored of
athletics that we assume that they are foremost in the minds of legislators as well as
fans. We must not forget, however, that there are only some 600 major league baseball
players. Whatever muscle they might have been able to muster by combining forces with
other athletes has been greatly impaired by the manner in which this Court has isolated
them. It is this Court that has made them impotent, and this Court should correct its
error.
We do not lightly overrule our prior constructions of federal statutes,
but when our errors deny substantial federal rights, like the right to compete freely and
effectively to the best of one's ability as guaranteed by the antitrust laws, we must
admit our error and correct it. We have done so before and we should do so again here.
See, e. g., Blonder-Tongue Laboratories, Inc. v. University of Illinois
Foundation, 402 U.S. 313 (1971); Boys Markets, Inc. v. Retail Clerks Union,
398 U.S. 235, 241 (1970).10
To the extent that there is concern over any reliance interests that
club owners may assert, they can be satisfied by making our decision prospective only.
Baseball should be covered by the antitrust laws beginning with this case and henceforth,
unless Congress decides otherwise.11
Accordingly, I would overrule Federal Baseball Club and Toolson and reverse
the decision of the Court of Appeals.
This does not mean that petitioner would necessarily prevail, however. Lurking in the
background is a hurdle of recent vintage that petitioner still must overcome. In 1966, the
Major League Players Association was formed. It is the collective-bargaining
representative for all major league baseball players. Respondents argue that the reserve
system is now part and parcel of the collective-bargaining agreement and that because it
is a mandatory subject of bargaining, the federal labor statutes are applicable, not the
federal antitrust laws. The lower courts did not rule on this argument, having decided the
case solely on the basis of the antitrust exemption.
This Court has faced the interrelationship between the antitrust laws and the labor laws
before. The decisions make several things clear. First, "benefits to organized labor
cannot be utilized as a cat's-paw to pull employer's chestnuts out of the antitrust
fires." United States v. Women's Sportswear Manufacturers Assn., 336
U.S. 460, 464 (1949). See also Allen Bradley Co. v. Local Union No. 3, 325
U.S. 797 (1945). Second, the very nature of a collective-bargaining agreement mandates
that the parties be able to "restrain" trade to a greater degree than management
could do unilaterally. United States v. Hutcheson, 312 U.S. 219 (1941); United
Mine Workers v. Pennington, 381 U.S. 657 (1965); Amalgamated Meat Cutters
v. Jewel Tea, 381 U.S. 676 (1965); cf., Teamsters Union v. Oliver,
358 U.S. 283 (1959). Finally, it is clear that some cases can be resolved only by
examining the purposes and the competing interests of the labor and antitrust statutes and
by striking a balance.
It is apparent that none of the prior cases is precisely in point. They involve
union-management agreements that work to the detriment of management's competitors. In
this case, petitioner urges that the reserve system works to the detriment of labor.
While there was evidence at trial concerning the collective-bargaining relationship
of the parties, the issues surrounding that relationship have not been fully explored. As
one commentary has suggested, this case "has been litigated with the implications for
the institution of collective bargaining only dimly perceived. The labor law issues have
been in the corners of the case -- the courts below, for example, did not reach them --
moving in and out of the shadows like an uninvited guest at a party whom one can't decide
either to embrace or expel."
It is true that in Radovich v. National Football League, supra, the Court
rejected a claim that federal labor statutes governed the relationship between a
professional athlete and the professional sport. But, an examination of the briefs and
record in that case indicates that the issue was not squarely faced. The issue is once
again before this Court without being clearly focused. It should, therefore, be the
subject of further inquiry in the District Court.
There is a surface appeal to respondents' argument that petitioner's sole remedy lies in
filing a claim with the National Labor Relations Board, but this argument is premised on
the notion that management and labor have agreed to accept the reserve clause. This notion
is contradicted, in part, by the record in this case. Petitioner suggests that the reserve
system was thrust upon the players by the owners and that the recently formed players'
union has not had time to modify or eradicate it. If this is true, the question arises as
to whether there would then be any exemption from the antitrust laws in this case.
Petitioner also suggests that there are limits to the antitrust violations to which labor
and management can agree. These limits should also be explored.
In light of these considerations, I would remand this case to the District Court for
consideration of whether petitioner can state a claim under the antitrust laws despite the
collective-bargaining agreement, and, if so, for a determination of whether there has been
an antitrust violation in this case.
1 The reserve system, publicly
introduced into baseball contracts in 1887, see Metropolitan Exhibition Co. v. Ewing,
42 F. 198, 202-204 (CC SDNY 1890), centers in the uniformity of player contracts; the
confinement of the player to the club that has him under the contract; the assignability
of the player's contract; and the ability of the club annually to renew the contract
unilaterally, subject to a stated salary minimum. Thus
A. Rule 3 of the Major League Rules provides in part:
"(a) UNIFORM CONTRACT. To preserve morale and to produce the similarity of conditions
necessary to keen competition, the contracts between all clubs and their players in the
Major Leagues shall be in a single form which shall be prescribed by the Major League
Executive Council. No club shall make a contract different from the uniform contract or a
contract containing a non-reserve clause, except with the written approval of the
Commissioner. . . .
. . . .
"(g) TAMPERING. To preserve discipline and competition, and to prevent the enticement
of players, coaches, managers and umpires, there shall be no negotiations or dealings
respecting employment, either present or prospective, between any player, coach or manager
and any club other than the club with which he is under contract or acceptance of terms,
or by which he is reserved, or which has the player on its Negotiation List, or between
any umpire and any league other than the league with which he is under contract or
acceptance of terms, unless the club or league with which he is connected shall have, in
writing, expressly authorized such negotiations or dealings prior to their
commencement."
B. Rule 9 of the Major League Rules provides in part:
"(a) NOTICE. A club may assign to another club an existing contract with a player.
The player, upon receipt of written notice of such assignment, is by his contract bound to
serve the assignee.
. . . .
"After the date of such assignment all rights and obligations of the assignor clubs
thereunder shall become the rights and obligations of the assignee club . . . ."
C. Rules 3 and 9 of the Professional Baseball Rules contain provisions parallel to those
just quoted.
D. The Uniform Player's Contract provides in part:
"4. (a) . . . The Player agrees that, in addition to other remedies, the Club shall
be entitled to injunctive and other equitable relief to prevent a breach of this contract
by the Player, including, among others, the right to enjoin the Player from playing
baseball for any other person or organization during the term of this contract."
"5. (a) The Player agrees that, while under contract, and prior to expiration of the
Club's right to renew this contract, he will not play baseball otherwise than for the
Club, except that the Player may participate in post-season games under the conditions
prescribed in the Major League Rules. . . ."
"6. (a) The Player agrees that this contract may be assigned by the Club (and
reassigned by any assignee Club) to any other Club in accordance with the Major League
Rules and the Professional Baseball Rules."
"10. (a) On or before January 15 (or if a Sunday, then the next preceding business
day) of the year next following the last playing season covered by this contract, the Club
may tender to the Player a contract for the term of that year by mailing the same to the
Player at his address following his signature hereto, or if none be given, then at his
last address of record with the Club. If prior to the March 1 next succeeding said January
15, the Player and the Club have not agreed upon the terms of such contract, then on or
before 10 days after said March 1, the Club shall have the right by written notice to the
Player at said address to renew this contract for the period of one year on the same
terms, except that the amount payable to the Player shall be such as the club shall fix in
said notice; provided, however, that said amount, if fixed by a Major League Club, shall
be an amount payable at a rate not less than 80% of the rate stipulated for the preceding
year.
"(b) The Club's right to renew this contract, as provided in subparagraph (a) of this
paragraph 10, and the promise of the Player not to play otherwise than with the Club have
been taken into consideration in determining the amount payable under paragraph 2
hereof." [Back]
2. Millions have known and enjoyed
baseball. One writer knowledgeable in the field of sports almost assumed that everyone did
until, one day, he discovered otherwise:
"I knew a cove who'd never heard of Washington and Lee,
Of Caesar and Napoleon from the ancient jamboree,
But, bli'me, there are queerer things than anything like that,
For here's a cove who never heard of 'Casey at the Bat'!
. . . .
"Ten million never heard of Keats, or Shelley, Burns or Poe;
But they know 'the air was shattered by the force of Casey's blow';
They never heard of Shakespeare, nor of Dickens, like as not,
But they know the somber drama from old Mudville's haunted lot.
"He never heard of Casey! Am I dreaming? Is it true?
Is fame but windblown ashes when the summer day is through?
Does greatness fade so quickly and is grandeur doomed to die
That bloomed in early morning, ere the dusk rides down the sky?"
"He Never Heard of Casey" Grantland Rice, The Sportlight, New York Herald
Tribune, June 1, 1926, p. 23.
[Back]
3. "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 our gonfalon bubble,
Making a Giant hit into a double --
Words that are weighty with nothing but trouble:
'Tinker to Evers to Chance.'"
Franklin Pierce Adams, Baseball's Sad Lexicon. [Back]
4. "And properly so. Baseball's
welfare and future should not be for politically insulated interpreters of technical
antitrust statutes but rather should be for the voters through their elected
representatives. If baseball is to be damaged by statutory regulation, let the congressman
face his constituents the next November and also face the consequences of his baseball
voting record." 443 F.2d, at 272.
Cf. Judge Friendly's comments in Salerno v. American League, 429 F.2d 1003,
1005 (CA2 1970), cert. denied, sub nom. Salerno v. Kuhn, 400 U.S. 1001
(1971):
"We freely acknowledge our belief that Federal Baseball was not one of Mr.
Justice Holmes' happiest days, that the rationale of Toolson is extremely dubious
and that, to use the Supreme Court's own adjectives, the distinction between baseball and
other professional sports is 'unrealistic,' 'inconsistent' 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 Court is ready to
give them a happy despatch." [Back]
5. "What really saved baseball, legally at least, for the next half century was the protective canopy spread over it by the United States Supreme Court's decision in the Baltimore Federal League anti-trust suit against Organized Baseball in 1922. In it Justice Holmes, speaking for a unanimous court, ruled that the business of giving baseball exhibitions for profit was not 'trade or commerce in the commonly-accepted use of those words' because 'personal effort, not related to production, is not a subject of commerce'; nor was it interstate, because the movement of ball clubs across state lines was merely 'incidental' to the business. It should be noted that, contrary to what many believe, Holmes did call baseball a business; time and again those who have not troubled to read the text of the decision have claimed incorrectly that the court said baseball was a sport and not a business." 2 H. Seymour, Baseball 420 (1971). [Back]
6. While I joined the Court's opinion in Toolson v. New York Yankees, Inc., 346 U.S. 356, I have lived to regret it; and I would now correct what I believe to be its fundamental error. [Back]
7. Had this same group boycott occurred in another industry, Klor's, Inc. v. Broadway-Hale Stores, Inc., 359 U.S. 207; United States v. Shubert, 348 U.S. 222; or even in another sport, Haywood v. National Basketball Assn., 401 U.S. 1204 (DOUGLAS, J., in chambers); Radovich v. National Football League, 352 U.S. 445; United States v. International Boxing Club, 348 U.S. 236; we would have no difficulty in sustaining petitioner's claim. [Back]
8. The Court's reliance upon
congressional inaction disregards the wisdom of Helvering v. Hallock, 309
U.S. 106, 119-121, where we said:
"Nor does want of specific Congressional repudiations . . . serve as an implied
instruction by Congress to us not to reconsider, in the light of new experience . . .
those decisions . . . . It would require very persuasive circumstances enveloping
Congressional silence to debar this Court from re-examining its own doctrines. . . .
Various considerations of parliamentary tactics and strategy might be suggested as reasons
for the inaction of . . . Congress, but they would only be sufficient to indicate that we
walk on quicksand when we try to find in the absence of corrective legislation a
controlling legal principle."
And see United States v. South-Eastern Underwriters Assn., 322 U.S. 533,
556-561. [Back]
9. As MR. JUSTICE BLACKMUN points out, the reserve system is not novel. It has been employed since 1887. See Metropolitan Exhibition Co. v. Ewing, 42 F. 198, 202-204 (CC SDNY 1890). The club owners assert that it is necessary to preserve effective competition and to retain fan interest. The players do not agree and argue that the reserve system is overly restrictive. Before this lawsuit was instituted, the players refused to agree that the reserve system should be a part of the collective-bargaining contract. Instead, the owners and players agreed that the reserve system would temporarily remain in effect while they jointly investigated possible changes. Their activity along these lines has halted pending the outcome of this suit. [Back]
10. In the past this Court has not
hesitated to change its view as to what constitutes interstate commerce. Compare United
States v. Knight Co., 156 U.S. 1 (1895), with Mandeville Island Farms v.
American Crystal Sugar Co., 334 U.S. 219 (1948), and United States v. Darby,
312 U.S. 100 (1941).
"The jurist concerned with 'public confidence in, and acceptance of the judicial
system' might well consider that, however admirable its resolute adherence to the law as
it was, a decision contrary to the public sense of justice as it is, operates, so far as
it is known, to diminish respect for the courts and for law itself." Szanton, Stare
Decisis; A Dissenting View, 10 Hastings L. J. 394, 397 (1959). [Back]
11. We said recently that "in rare cases, decisions construing federal statutes might be denied full retroactive effect, as for instance where this Court overrules its own construction of a statute . . . ." United States v. Estate of Donnelly, 397 U.S. 286, 295 (1970). Cf. Simpson v. Union Oil Co. of California, 377 U.S. 13, 25 (1964). [Back]