F. JAMES SENSENBRENNER, JR. STATEMENT ON ANTI-TRUST ISSUES IN MAJOR LEAGUE BASEBALL

December 6, 2001

           For years, the most feared phrase in the English language has been, “I’m from the government and I’m here to help.”

           In 1922, the judicial branch of the government was there to help Major League Baseball. In a unique decision, the United States Supreme Court held that baseball was not a business and thus, not subject to the anti-trust laws. With minor modifications, baseball’s anti-trust exemption has survived to this day. It is an exemption enjoyed by none of the other major league sports.

           Seventy-nine years ago, major league baseball consisted of 16 teams clustered in the northeast and midwest. Players were paid what was generously described as a pittance, ball parks were privately owned, and genuine fan loyalty was built upon stars playing with the same team for most of their careers.

           Today, thirty teams play in major cities throughout the country - except one, the nation’s capital. Players receive astronomical salaries, the newer parks were largely built with taxpayer’s money, and free agency sends the stars from one team to another almost before they can warm their place in the dugout. The major argument for using taxpayers’ funds to build new stadiums has been the economic boon brought to a community by having a major league baseball team.

           At this hearing, we will receive testimony that baseball is in dire financial straits and that the anti-trust exemption should remain. One of the many questions which baseball must answer is why so many teams are in financial peril with the protection of special legal status when professional football, basketball and hockey teams are not. Perhaps the help given to baseball by the Supreme Court in 1922 really hasn’t been so helpful after all.

           And, another question to be answered by baseball is how a sport which grosses over $3 billion a year is still not a business when the presence of a team obviously stimulates business throughout the lucky communities. For years, baseball has told Congress and the public that it can heal itself. It has not done so, even though this year baseball has had record attendance and the best World Series in history.

           The numbers don’t add up. Success on the field and at the box office should bring success on the bottom line. So, maybe the Supreme Court’s help in 1922 has outlived its usefulness and the market should be allowed to work in baseball like it has in the other major sports.