On May 29, 1922, the Supreme Court handed down a landmark decision in the Federal Baseball Club vs. National League case — one that would reshape professional baseball for generations to come. The Court declared that Major League Baseball (MLB) was exempt from antitrust laws, the kind of regulations that normally govern how businesses operate. The reasoning? Baseball, according to the Court, didn't qualify as interstate commerce. Instead, it was viewed as a sport falling under the jurisdiction of individual states. The ripple effects of this decision continue to shape how professional baseball is structured and run to this day.
What made this ruling so consequential was that it essentially gave Major League Baseball (MLB) a free pass around the Sherman Antitrust Act, a law that had been on the books since 1890. That legislation was designed with a clear purpose: to break up monopolies, foster fair and open competition both domestically within the United States and on the international stage, and keep the marketplace healthy for consumers through efficient business practices and reasonable prices. Beyond that, the Sherman Act was meant to level the playing field across industries and uphold product quality. Yet in its May 29, 1922 decision, the Court concluded that none of these protections applied to Major League Baseball, carving out a special exemption for the league.
Why does this case still matter? Put simply, it is the central reason no rival league has been able to seriously challenge Major League Baseball (MLB) since 1922. The ruling handed the MLB what amounts to a legal monopoly over the sport of baseball — and one that is entirely within the bounds of the law. What makes this even more remarkable is that no other professional sports league in the United States enjoys a comparable antitrust exemption. This unique legal shield grants Major League Baseball a degree of control and operational flexibility that its counterparts in other sports simply do not have. And perhaps most striking of all, this ruling remains in effect today.