MLB settles lawsuits from minor league teams, avoids possible antitrust challenge at Supreme Court

NEW YORK — Major League Baseball avoided a possible U.S. Supreme Court challenge to its antitrust exemption when it settled a federal lawsuit and two in New York State court filed by minor league teams who lost their big league affiliations.

Tri-City and Norwich sued in state court in January 2021 and a trial had been scheduled to start on Nov. 13 on issues such as whether MLB made improper inducements to minor league teams and whether minor league teams breached their agreements with the former minor league governing body. The Supreme Court granted baseball an antitrust exemption in the Federal League case when Justice Oliver Wendell Holmes wrote that baseball was not interstate commerce but exhibitions exempt from antitrust laws. The Supreme Court reaffirmed the decision in a 1953 case involving New York Yankees farmhand George Toolson and in the 1972 Curt Flood decision, saying any changes should come from Congress.

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