Congress’ interest in baseball didn’t start when Mark McGwire wasn’t there to talk about the past in 2005. The Curt Flood Act over a decade ago said that antitrust laws only applied to dealings at the Major League level. Garrett Broshuis did a Q&A about the Act withEd Edmonds, the Associate Dean for Library and Information Technology at Notre Dame Law School:
You’ve written about entities within minor league baseball lobbying Congress during the passage of this act. Can you talk about the effects of these efforts?
Minor League Baseball was quite concerned about the possibility of any changes to the basic “farm system” relationship of minor league teams to major league teams. In particular, major league teams cover the salaries of minor league players, and this is a critical feature to the existing business model of minor league teams. When the legislation was first considered in Congress, Minor League Baseball made sure that it approached the many Congressmen and Senators with minor league franchises within their Congressional districts or states to make sure that any possibility of a lawsuit by a minor league player could not happen by changing the status of major league players. Most courts that have considered baseball’s historic antitrust exemption have held that it covers the entire business of baseball. The legislation basically left a slight bit of ambiguity by stating that baseball players are “subject to the antitrust laws to the same extent such conduct . . . would be subject to the antitrust laws if engaged in by persons in any other professional sports business affecting interstate commerce.”
[The rest of Broshuis' Q&A can be found here.]
And here are some snippets from the testimony of Dan Peltier. Note that although this was spoken over a decade ago, things haven’t changed a whole lot. The salary figures Peltier quotes are similar to what today’s players make, despite different economic circumstances.
…no one gets wealthy in the minors. Most baseball players do not make in a year as much as Cal Ripken makes for one game. In fact, most minor league players would love to make what I understand you pay your entry-level staffers. When I played rookie ball, although I was under contract for a year, I made $850 a month for 21/2 months. In double A, I made $1,350 a month, and in triple A I made $1,850 a month for 5 months. Clubhouse dues and tips cost roughly $1,500 for the season, leaving me about $7,500 before taxes. I have no idea how some of my friends who were married and had kids were able to make ends meet.
Third, a minor league baseball players has very few rights. Baseball’s reserve clause is very much like the indentured servitude of the 1700’s. When you first sign, you are owned by that team for basically 7 seasons. A team can buy you, sell you, send you to another country, or fire you whenever they want. They can cut you if you get hurt.
A player, on the other hand, cannot try to play for someone else. He can’t try out for his home team. You have to play for the team that drafted you even if they are loaded at your position. I got drafted by the Texas Rangers after my junior year of college as an outfielder. I also played some first base. When I was ready for the majors, the Texas outfield included superstars such as Juan Gonzalez in left, Ruben Sierra in right, and Raphael Palmeiro at first. I got the chance to play when Ruben Sierra got hurt, but was sent back to the minors when he came back, even though at the time I was hitting .385.
Under the standard minor league contract, a player is required to waive all rights to appeal any action by the team in State or Federal court. You can appeal to the commissioner of baseball, except there has been no commissioner for almost 5 years. In addition, you are pushed to leave college or not to attend in the first place and play in the minors, even though the chances are that you will never have a career in the major leagues.
The rest of Peltier’s testimony is just as enlightening, and a good read.