The Introduction of the Reserve Clause in Major League Baseball


Book Description

This paper investigates the introduction of the reserve clause in Major League Baseball during the 1880s. Taking advantage of a unique data set describing the salaries for twenty nine high-quality players throughout the decade of the 1880s, we investigate the impact of the reserve clause as it evolved from a gentleman's agreement to a formal contract stipulation. We test three specific hypotheses concerning the reserve clause: its effect on average salaries, on the remuneration to marginal product, and the premium paid to a player for changing teams. The evidence suggests that introducing the reserve clause reduced average salaries and the premium for changing teams; detectable monopsony power was transferred to team owners almost immediately. However, there was no statistically significant impact of the reserve clause on how much players were paid for their marginal product. The empirical results indicate that reserve clause shifted considerable monopsony power to team owners immediately after it was instituted.




Baseball's Reserve System


Book Description

On October 8, 1969, the St. Louis Cardinals traded center fielder Curt Flood to the Philadelphia Phillies. At the time of the trade, Flood was thirty-one years old, at the top of his game and in the prime of his life. In professional baseball, trades are not uncommon. What was different about this trade was that Curtis Charles Flood refused to recognize the - right - of the Cardinals to trade him to another team without his consent. In doing so, Flood challenged a practice that was designed and enforced by professional baseball owners for over eighty years - a practice commonly referred to as the - reserve system. It was the late 1960s - a decade of great racial tension and unrest; the Vietnam War was dividing the country; and now Curt Flood, a black man was challenging the lily-white major league baseball establishment.On January 16, 1970, Curt Flood filed suit in the Federal District Court in New York against major league baseball alleging that baseball?s reserve system violated the Sherman Antitrust Act and Flood?s rights under federal law. Flood argued that once he signed a contract (in his case, when he was eighteen years old), he was owned by (this team) for life and that the reserve system was tantamount to slavery.Flood?s decision to challenge major league baseball cost him his baseball career and much more. Despite the U.S. Supreme Court?s denial of Flood?s claims and ruling (in 1972) that professional baseball was exempt from federal antitrust regulation, professional baseball players had (free agency) by 1975. This is the story of Curt Flood?s case and trial against major league baseball and its aftermath.







A Well-Paid Slave


Book Description

A “captivating”* look at how center fielder Curt Flood's refusal to accept a trade changed Major League Baseball forever. After the 1969 season, the St. Louis Cardinals traded their star center fielder, Curt Flood, to the Philadelphia Phillies, setting off a chain of events that would change professional sports forever. At the time there were no free agents, no no-trade clauses. When a player was traded, he had to report to his new team or retire. Unwilling to leave St. Louis and influenced by the civil rights movement, Flood chose to sue Major League Baseball for his freedom. His case reached the Supreme Court, where Flood ultimately lost. But by challenging the system, he created an atmosphere in which, just three years later, free agency became a reality. Flood’s decision cost him his career, but as this dramatic chronicle makes clear, his influence on sports history puts him in a league with Jackie Robinson and Muhammad Ali. *The Washington Post




The Great Baseball Revolt


Book Description

The Players League, formed in 1890, was a short-lived professional baseball league controlled and owned in part by the players themselves, a response to the National League’s salary cap and “reserve rule,” which bound players for life to one particular team. Led by John Montgomery Ward, the Players League was a star-studded group that included most of the best players of the National League, who bolted not only to gain control of their wages but also to share ownership of the teams. Lasting only a year, the league impacted both the professional sports and the labor politics of athletes and nonathletes alike. The Great Baseball Revolt is a historic overview of the rise and fall of the Players League, which fielded teams in Boston, Brooklyn, Buffalo, Chicago, Cleveland, New York, Philadelphia, and Pittsburgh. Though it marketed itself as a working-class league, the players were underfunded and had to turn to wealthy capitalists for much of their startup costs, including the new ballparks. It was in this context that the league intersected with the organized labor movement, and in many ways challenged by organized labor to be by and for the people. In its only season, the Players League outdrew the National League in fan attendance. But when the National League overinflated its numbers and profits, the Players League backers pulled out. The Great Baseball Revolt brings to life a compelling cast of characters and a mostly forgotten but important time in professional sports when labor politics affected both athletes and nonathletes. Purchase the audio edition.




The Baseball Trust


Book Description

The impact of antitrust law on sports is in the news all the time, especially when there is labor conflict between players and owners, or when a team wants to move to a new city. And if the majority of Americans have only the vaguest sense of what antitrust law is, most know one thing about it-that baseball is exempt. In The Baseball Trust, legal historian Stuart Banner illuminates the series of court rulings that resulted in one of the most curious features of our legal system-baseball's exemption from antitrust law. A serious baseball fan, Banner provides a thoroughly entertaining history of the game as seen through the prism of an extraordinary series of courtroom battles, ranging from 1890 to the present. The book looks at such pivotal cases as the 1922 Supreme Court case which held that federal antitrust laws did not apply to baseball; the 1972 Flood v. Kuhn decision that declared that baseball is exempt even from state antitrust laws; and several cases from the 1950s, one involving boxing and the other football, that made clear that the exemption is only for baseball, not for sports in general. Banner reveals that for all the well-documented foibles of major league owners, baseball has consistently received and followed antitrust advice from leading lawyers, shrewd legal advice that eventually won for baseball a protected legal status enjoyed by no other industry in America. As Banner tells this fascinating story, he also provides an important reminder of the path-dependent nature of the American legal system. At each step, judges and legislators made decisions that were perfectly sensible when considered one at a time, but that in total yielded an outcome-baseball's exemption from antitrust law-that makes no sense at all.




Creating the National Pastime


Book Description

At a time when many baseball fans wish for the game to return to a purer past, G. Edward White shows how seemingly irrational business decisions, inspired in part by the self-interest of the owners but also by their nostalgia for the game, transformed baseball into the national pastime. Not simply a professional sport, baseball has been treated as a focus of childhood rituals and an emblem of American individuality and fair play throughout much of the twentieth century. It started out, however, as a marginal urban sport associated with drinking and gambling. White describes its progression to an almost mythic status as an idyllic game, popular among people of all ages and classes. He then recounts the owner's efforts, often supported by the legal system, to preserve this image. Baseball grew up in the midst of urban industrialization during the Progressive Era, and the emerging steel and concrete baseball parks encapsulated feelings of neighborliness and associations with the rural leisure of bygone times. According to White, these nostalgic themes, together with personal financial concerns, guided owners toward practices that in retrospect appear unfair to players and detrimental to the progress of the game. Reserve clauses, blacklisting, and limiting franchise territories, for example, were meant to keep a consistent roster of players on a team, build fan loyalty, and maintain the game's local flavor. These practices also violated anti-trust laws and significantly restricted the economic power of the players. Owners vigorously fought against innovations, ranging from the night games and radio broadcasts to the inclusion of African-American players. Nonetheless, the image of baseball as a spirited civic endeavor persisted, even in the face of outright corruption, as witnessed in the courts' leniency toward the participants in the Black Sox scandal of 1919. White's story of baseball is intertwined with changes in technology and business in America and with changing attitudes toward race and ethnicity. The time is fast approaching, he concludes, when we must consider whether baseball is still regarded as the national pastime and whether protecting its image is worth the effort.




In Pursuit of Pennants


Book Description

The 1936 Yankees, the 1963 Dodgers, the 1975 Reds, the 2010 Giants—why do some baseball teams win while others don’t? General managers and fans alike have pondered this most important of baseball questions. The Moneyball strategy is not the first example of how new ideas and innovative management have transformed the way teams are assembled. In Pursuit of Pennants examines and analyzes a number of compelling, winning baseball teams over the past hundred-plus years, focusing on their decision making and how they assembled their championship teams. Whether through scouting, integration, instruction, expansion, free agency, or modernizing their management structure, each winning team and each era had its own version of Moneyball, where front office decisions often made the difference. Mark L. Armour and Daniel R. Levitt show how these teams succeeded and how they relied on talent both on the field and in the front office. While there is no recipe for guaranteed success in a competitive, ever-changing environment, these teams demonstrate how creatively thinking about one’s circumstances can often lead to a competitive advantage. Purchase the audio edition.




Baseball's Power Shift


Book Description

From Major League Baseball's inception in the 1880s through World War II, team owners enjoyed monopolistic control of the industry. Despite the players' desire to form a viable union, every attempt to do so failed. The labor consciousness of baseball players lagged behind that of workers in other industries, and the public was largely in the dark about labor practices in baseball. In the mid-1960s, star players Sandy Koufax and Don Drysdale staged a joint holdout for multiyear contracts and much higher salaries. Their holdout quickly drew support from the public; for the first time, owners realized they could ill afford to alienate fans, their primary source of revenue. Baseball's Power Shift chronicles the growth and development of the union movement in Major League Baseball and the key role of the press and public opinion in the players' successes and failures in labor-management relations. Swanson focuses on the most turbulent years, 1966 to 1981, which saw the birth of the Major League Baseball Players Association as well as three strikes, two lockouts, Curt Flood's challenge to the reserve clause in the Supreme Court, and the emergence of full free agency. To defeat the owners, the players' union needed support from the press, and perhaps more importantly, the public. With the public on their side, the players ushered in a new era in professional sports when salaries skyrocketed and fans began to care as much about the business dealings of their favorite team as they do about wins and losses. Swanson shows how fans and the media became key players in baseball's labor wars and paved the way for the explosive growth in the American sports economy.