By Herbert Hovenkamp, ProMarket
Senators Ted Cruz (R-TX), Mike Lee (R-UT), Josh Hawley (R-MS), Marco Rubio (R-FL), and Marsha Blackburn (R-TN) propose getting rid of baseball’s longstanding exemption from the antitrust laws. They are not concerned about improving antitrust policy. Rather, they are upset that Major League Baseball pulled the 2021 All-Star Game out of Atlanta after Georgia passed legislation limiting voting rights. The Senators’ comments acknowledged as much: “If Major League Baseball is going to act dishonestly and spread lies about Georgia’s voting rights bill they shouldn’t expect to continue to receive special benefits from Congress,” Cruz said. Their statements went on to declare that baseball has enjoyed a special and very broad exemption from the antitrust laws that other businesses, including other professional sports, do not.
The Senators are correct about one thing: All the other professional sports, including football, basketball, automobile and horse racing, bowling, and others get along just fine without a similar exemption. Further, there are some good arguments for getting rid of it. The reasons for withdrawing an exemption matter, however.