San Jose Case Summary

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This case refers the City of San Jose challenging Major League Baseball’s (MLB) 92-year old exemption from the antitrust laws. MLB constitution states that each of the league’s 30 teams play their home games within a specific area, determined by the league itself. This case refers to the Oakland Athletics desire to relocate from its current territory of Alameda and Contra Costa counties to San Jose. The Athletics are currently facing a decline in attendance and revenue and believe a move to San Jose will provide a more profitable revenue stream. This issue facing the Athletics is that San Jose falls under the operating territory of the San Francisco Giants. In order to relocate they must seek the approval of the MLB. During this process the Athletics and the city of San Jose entered into an agreement that the Athletics would buy six parcels of land. However, the MLB did not approve the move. The city of San Jose believes that the MLB purposely attempted to block the land deal to protect the Giant’s operating territory, of San Jose. As a result, San Jose filed suit. Stating that the MLB violated state and federal antitrust laws, of California’s consumer protection statute and of California tort law. …show more content…
In previous cases, such as, Toolson v. New York Yankees, Inc. the court ruled that MLB was not obligated to follow the antitrust laws by legislation. This meant that MLB continued to operate for thirty years under the notion that it did not have to follow antitrust legislation. Again with Flood v. Kuhn, 407 U.S. 258 (1972) the court once against upheld MLB’s exemption regarding antitrust laws. It also ruled that any change to this exemption would have to come directly from the Supreme Court or

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