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Anti-trust Newsbeat

Monday, December 08, 2014

Minor League Salaries Challenged in New Antitrust Lawsuit

But exempted monopolistic trusts are the best kind of monopolistic trusts!

The Miranda suit alleges that MLB unlawfully suppresses minor league players’ salaries in a variety of ways. By subjecting North American amateur players to the first-year player draft each June, Major League Baseball prevents draftees from selling their services to the highest bidder — instead forcing them to negotiate with only a single team. MLB then artificially reduces the size of the signing bonuses that entry level players receive through its domestic and international signing bonus pool restrictions.

Once players have entered the minor leagues, their annual salaries are then largely dictated on a take-it-or-leave-it basis by their teams in accordance with MLB-imposed, minor league salary “guidelines.” And because MLB teams retain the exclusive rights to their minor league players’ services for seven years, many players go their entire careers without ever being able to sell their services in a competitive market. As a result, the suit asserts that most minor league players earn as little as $3,000 to $7,500 per year.

The Miranda suit challenges the legality of each of these restraints, effectively launching a full-frontal attack on the contractual underpinnings of baseball’s player development system. Specifically, the suit contends that by agreeing to these practices collectively, the 30 MLB teams have illegally conspired to restrain trade and monopolize the industry, in violation of the Sherman Act.

 

RoyalsRetro (AG#1F) Posted: December 08, 2014 at 05:30 PM | 14 comment(s)
  Beats: anti-trust, litigation, minor leagues, players salaries

 

 

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