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MLB Reaches Settlement with Former Minor League Teams, Avoids Potential Supreme Court Antitrust Challenge

Settlement comes as MLB faced potential legal consequences for cutting affiliation agreements from 160 to 120, with lawsuits brought forth by Staten Island Yankees, Tri-City ValleyCats and others alleging violations of the Sherman Antitrust Act.

Overview

  • Major League Baseball has settled a federal lawsuit and two state court suits related to its reduction of minor league affiliations, thereby avoiding a potential Supreme Court challenge to its over 100-year-old antitrust exemption.
  • The lawsuits were filed by the Staten Island Yankees, Norwich Sea Unicorns, Tri-City ValleyCats, and others, after MLB reduced its minor league affiliation agreements from 160 to 120 back in 2020.
  • The teams alleged violations of the Sherman Antitrust Act, accusing MLB of artificially reducing and capping output in the market for Minor League Baseball (MiLB) teams affiliated with MLB clubs.
  • Additional issues such as whether MLB made improper inducements to minor league teams and the breaching of agreements were due to be addressed in a trial scheduled on November 13, now cancelled due to the settlement.
  • The terms of the settlement remain confidential, and neither the MLB nor the attorney for the minor league teams, James W. Quinn, has disclosed any details.