Legal Document

346 U.S. 356 74 Supreme Court Reporter 78 98 L.Ed. 64 TOOLSONv.NEW YORK YANKEES, Incorporated et al. KOWALSKI versus CHANDLER CORBETT Nos. 18, 23 and 25. Argued Oct. 13, 14, 1953. Decided Nov. 9, Rehearing Denied Dec. See 917, 271. Number 18: Mr. Howard L. Parke, Baltimore, Md., for petitioner Toolson. Norman S. Sterry, Los Angeles, Cal., respondents New York Yankees others. 23: Frederic Atlantic Johnson, City, Kowalski. Raymond T. Jackson, Cleveland, Ohio, Chandler 25: Seymour Martinson, Corbett another. PER CURIAM. 1 In Federal Baseball Club of Baltimore National League Professional Clubs, 1922, 259 200, 42 465, 66 898, this held that the business providing public baseball games profit between clubs professional players was not within scope federal antitrust laws. Congress has had ruling under consideration but seen fit to bring such these laws by legislation having prospective effect. The thus been left thirty years develop, on understanding it subject existing legislation. present cases ask us overrule prior decision and, with retrospective effect, hold applicable. We think if there are evils in field which now warrant application should be Without re-examination underlying issues, judgments below affirmed authority supra, so far as determines no intention including 2 Affirmed. 3 Justice BURTON, whom REED concurs, dissenting. 4 Whatever may have situation when case1 decided & N Immigration Nationality Decisions am able join today's which, announces organized baseball, 1953, still is engaged interstate trade or commerce. light baseball's well-known widely distributed capital investments used conducting competitions teams constantly traveling states, its receipts expenditures large sums transmitted numerous purchases materials commerce, attendance at local exhibitions audiences often across state lines, radio television activities expand beyond sponsorship advertising, highly 'farm system' minor league clubs, coupled restrictive contracts understandings individuals among leagues playing throughout United States, even Canada, Mexico Cuba, a contradiction terms say defendants before commerce those Constitution States Sherman Act, 15 Code Annotated KF65 U5 §§ 1—7, note.2 5 1952 Subcommittee Study Monopoly Power, House Representatives Committee Judiciary, after extended hearings, issued report dealing relation Act. said: 6 "Organized baseball' combination approximately 380 separate operating different District Columbia, * *. 7 'Inherently, intercity, intersectional, interstate. At beginning 1951 season, were divided 52 leagues. Each an unincorporated association from 10 play championship themselves according prearranged schedule. Such organization essential successful operation business. 8 'Of associated 1951, 39 nature.'3 9 case did amounted exempt acted determination amount Appeals case, 1921, described major game 'local end.'4 This stated 'The giving purely affairs', transportation equipment states 'is mere incident *.'5 main thrust argument counsel both Court, support proposition.6 Although argue amounting violate Act,7 significantly refrained expressing opinion issue. That realized then incidental features might rise magnitude would compel recognition them independently indicated statement made 1923 Holmes, writer Court's case. 1923, considering bill equity alleging violation Act parties presenting vaudeville circuit, considered merits writing Holmes said brought Case, what general incidental, some instances requires independently.'8 11 Congressional previously mentioned also 12 'Under judicial interpretations constitutional provision (the clause), power investigate, pass more particularly 'organized baseball,' is, affects, 13 'After full review all foregoing facts due modern interpretation clause, studied judgment Power jurisdiction investigate legislate baseball.' H.R.Rep. 2002, 82d Cong., 2d Sess. 4, 7, see 111—139.9 14 18 plaintiffs here allege they who damaged enforcement standard 'reserve clause' their pursuant nationwide agreements defendants.10 effect charge through illegal monopoly unreasonable restraints trade, exploits attract profits benefit Similarly, 25, because inequitable Mexican binding each respect other's clauses' lost services contract rights certain basebabll players. entered into combination, conspiracy attempt monopolize substantial damage plaintiffs. Conceding asset our Nation, high place enjoys hearts people possible justification special treatment sports authorization matter discretion Congress.11 Congress, however, enacted express exemption court demonstrated existence implied any sport restrains absence exemption, popularity increases, rather than diminishes, importance compliance standards reasonableness comparable required law It such, until exempted. Accordingly, reverse instant remand causes respective Courts alleged violations League, 898. Compare Paul Virginia, Wall. 168, 19 357; Hooper People State California, 155 648, 207, 297; South-Eastern Underwriters Ass'n, 322 533, 1162, 88 1440; Lorain Journal company 342 143, 72 181, 96 162. also, Times-Picayune Publishing 345 594, 73 872; Association Real Estate Boards, 339 485, 70 711, 94 1007; Crescent Amusement Co., 323 173, 65 254, 89 160; American Medical 317 519, 63 326, 87 434. Cng., 5. primary sources revenue admissions, television, concessions. following table indicates combined 16 major-league 1929, 1939, 1950. "Major "(In thousands dollars) "Source 192911939 1950 Home games. 6,559.1. 6,766.6 18,334.8 Road 2,221.4. 2,320.2 4,517.8 Exhibition 422.6. 515.7 911.5 Radio television. 0. 884.5 3,365.5 Concessions (net). 582.8. 850.3 2,936.3 Other.....____733.4.___776.0 _1,969.6 Gross receipts. 10,519.5 12,113.3 32,035.5 "Data unavailable clubs: Chicago, League; Pittsburgh, League. fastest-growing source Receipts media nonexistent 1929. 7.3 percent clubs' came source; 1950, share rose 10.5 percent. 'Portrayed absolute terms, growing becomes pronounced. nothing 1929 $884,500 1939 $3,365,500 Reported income indicate sharp increase continuing. To must added $110,000 sale all-star $1,075,000 similar world series.' Id., 5—6. Clubs Club, 50 App.D.C. 165, 169, 269 KF105 F3 681, 685. U.S., page 208, 209, 466. brief appellants Appeals, Pages 45 67; error 45—66. 68—72; 66—72. Hart ,B. Keith Vaudeville Exchange, 262 271, 274, 43 540, 541, 67 977, North Securities Exchange Comm., 327 686, 694, 785, 791, 90 945. opposing approval four exclusionary bills pending, take stand other sports, although constituting already broad coverage On contrary, 'Four introduced three House, one Senate, intending give complete unlimited immunity requested extend enterprises acts conduct enterprises. longer require competition facet activity enterprise. Thus rights, management stadia, purchase concession industry, many activities, well aspects solely related promotion field, immune untouchable. could granted without substantially repealing laws.' 230. reserve clause popularly believed player gives club first signs continuing exclusive right his services. Commissioner Frick testified popular essentially correct. He pointed out, merely contract, incorporates reticulated system rules regulations enable, indeed require, entire enforce club's continuous players.' 111. Section VII, Reserve Clause, 111—139, Gardella Chandler, Cir., 172 Reporter, 2nd Series 402. specific allegations appear comparable: 'XI. 'That Defendants, them, agreed bound restraint Interstate Commerce; designated Major-Minor Agreement, dated December 6, 1946, provides that: '1. All players' Major Leagues shall form Minor form. '2. provide assignee thereof option renew player's year he thereof. '3. shall, date year, designate list active eligible desires ensuing year. thereafter assigned released. '4. assignment club, remuneration same usually paid like ability. '5. negotiations reservation respecting employment either unless connected expressly authorized commencement. '6. players, President Association, determine best interests declared ineligible declaration, permitted employ him reinstated list. '7. whose name omitted thereby rendered service applied reinstatement. '8. violates reservation, participates against containing controlled indictment detrimental good repute placed '9. released contract. '10. tender reinstated. '11. release unconditionally 'XIII. reason Plaintiff being hereinabove set out making aforementioned refused since 25th day May, do refuse allow deprived means livelihood, Plaintiff's damages sum $125,000.00.' complaint contains cause action defendants, virtue agreements, several another have, States. E.g., exempted § Clayton 38 Statutes-at-Large 731, KF62 17, 17 (labor organizations), Capper-Volstead 388—389, 291, 292, 292 (farm cooperatives), McCarran-Ferguson 59 34, 61 448, (Supp. V) 1013, 1013 (insurance). And Apex Hosiery Leader, 310 469, 501, 512, 60 982, 996, 1002, 84 1311.

Classification Label: 7