Heard an interesting comment today on TV, not sure if it's true or not. Thought people here would know...

 

Who are the only 2 industries who are exempt from the Sherman Anti Trust Act?

- Collection of Major League Baseball Teams

- Collection of Health Insurance Companies

I found it interesting that in a bunch of states one insurer controls like 80+% of the market share. that's staggering!

- Collection of Major League Baseball Teams

- Collection of Health Insurance Companies

And with baseball, there is at least some legal logic there. MLB as seen as similar to a holding company with partner-owned business units (teams).

 

But with the insurance companies, I don't get it.

 

The NFL has an exemption too doesn't it

The NFL's exemption is only related to TV rights.

Edited September 29, 200916 yr by JorgeFabregas

The NFL has an exemption too doesn't it

No. That's why Al Davis is able to keep moving his team against the wishes of the NFL, in some fashion.

I was kind of hoping we'd have more time to answer, jason.

I found it interesting that in a bunch of states one insurer controls like 80+% of the market share. that's staggering!

That's misleading. It drops out medicare/medicaid and it also neglects self paid employers.

 

And with baseball, there is at least some legal logic there. MLB as seen as similar to a holding company with partner-owned business units (teams).

 

But with the insurance companies, I don't get it.

 

so with baseball, this eliminates the ability of say you and I to create a "professional" baseball league?

 

so with baseball, this eliminates the ability of say you and I to create a "professional" baseball league?

My understanding is that it primarily impacts the draft. There are other "professional" baseball leagues... or you could call them independent baseball leagues, but they dont try to compete with MLB head to head. If they tried, then you would see how the Anti-Trust part kicks in.

Edited September 29, 200916 yr by Athomeboy_2000

but when it was around, the Arena Football League or XFL competed with the NFL, so the NFL was not exempt from the Act.

so with baseball, this eliminates the ability of say you and I to create a "professional" baseball league?

No, it prevents us from starting an MLB team without their approval, or from starting a league or team and then going after MLB in court for unfair collusion in business practices. It also has major impact on player contracts and the players' union.

 

No, it prevents us from starting an MLB team without their approval, or from starting a league or team and then going after MLB in court for unfair collusion in business practices. It also has major impact on player contracts and the players' union.

 

That's the big part. Baseball doesn't have to follow the legal competition rules. If I started a baseball league, they could do whatever they wanted to undercut me.

but when it was around, the Arena Football League or XFL competed with the NFL, so the NFL was not exempt from the Act.

Competition with the MLB is allowed to exist, it just has no feasible way of exisitng.

but when it was around, the Arena Football League or XFL competed with the NFL, so the NFL was not exempt from the Act.

 

You guys are misunderstanding Sherman. It isn't that there can't, or won't, be competition, it is that the exempt entities are exempted from following the rules governing competition. MLB could pretty much do whatever they wanted to undercut any other professional baseball league that could come along.

You guys are misunderstanding Sherman. It isn't that there can't, or won't, be competition, it is that the exempt entities are exempted from following the rules governing competition. MLB could pretty much do whatever they wanted to undercut any other professional baseball league that could come along.

Correct, and to use the XFL / NFL comparison... the NFL couldnt do a whole lot to run them out other than produce a better product.

Correct, and to use the XFL / NFL comparison... the NFL couldnt do a whole lot to run them out other than produce a better product.

 

Which was really difficult!!!

Which was really difficult!!!

Oh man was the XFL bad.

Edited September 29, 200916 yr by Athomeboy_2000

Oh man was the XFL bad.

 

i did like the scramble to the ball rather than a coin toss

 

also, weren't the players encouraged to "date" the cheerleaders?

i did like the scramble to the ball rather than a coin toss

 

also, weren't the players encouraged to "date" the cheerleaders?

 

really? Some dude separated his shoulder their first try on that. I damn sure wouldn't want one of my team's players injured just for possession.

really? Some dude separated his shoulder their first try on that. I damn sure wouldn't want one of my team's players injured just for possession.

 

sounds Toby Hall'ish.

Ok, so I was reading up on the United Football League that started yesterday. An interesting fact fame up on their Wikipedia page:

In some locations, the Friday night games would put the league in direct competition with high school football. The National Football League (NFL), on the other hand, is prohibited under the federal anti-trust exemption law (15 U.S.C. § 1291) from broadcasting any professional game within seventy-five miles of any inter-collegiate or high school game on any Friday or Saturday, beginning with the second Friday in September, and ending the second Saturday in December (15 U.S.C. § 1293).