Anti trust powerpoint

Labor Relations and Collective Bargaining in Sports

Chris GulottaSlidecast #1

Trusts and Antitrust

• Trusts– Monopolies

• Sherman Antitrust Act of 1890

• Antitrust– Outlaw or restrict Monopolies and restrictions on

Free Trade

Antitrust and Labor Relation Acts

• Clayton Act of 1914

• National Labor Relations Act – Taft –Hartley Act of 1947

• Unions in Sports

Antitrust’s Impact

• “Trust Busting”– Standard Oil, AT&T, Microsoft, and Intel

• Important in maintaining Commerce and competition.

The “Business of Baseball”

• Baseball is unique under Antitrust protection

• Federal Baseball Club v. National League 259 U.S. 200 (1922)

Collective Bargaining Agreements

• CBA’s have come out of Unions and Antitrust works

• Final agreement/contract of negotiations between management and union

• Outlines the rights of both sides

CBA’s Role in Sports

• CBA’s importance in sports– Outline what each side gets– Without the CBA, there are no guidelines for

league setup• When CBA deal runs out, unless new one is

reached, Lockouts and work stoppages occur

Strikes and Lockouts

• When CBA negotiations reach a stand still or are not going anywhere:– Players can go on strike or,– Owners can lock out the players

• Impact all aspects of the game and league as well as all parties involved.

• In sports, strikes are uniqueBbecause the workers cantbe replaced.

MLB Strike of 1994• Most heralded strike• Players strike: August 12• Owners cancel remainder of Season: Sept. 14• Lasting impacts– Revenue– Attendance– Fan Support

Impact on Sports today• Sports today heavily impacted by strikes• MLB being upstaged by NFL• NBA drop• Change how Hockey is played• Potential Strikes

References• Sharp, L, Moorman, A, Claussen, C. (2010). Sports law: a managerial approach. Scottsdale: Holcomb

Hathaway.• Associated Press. (2004, August). 1994 strike was a low point for baseball. Retrieved March 6, 2011,

from http://sports.espn.go.com/mlb/news/story?id=1856626• Masteralexis, L., Barr, C., Hums, M. (2009). Principles and practice of sport management. Sudbury:

Jones and Bartlett Publishers.• Realclearsports. (2011, February). Top 10 sports work stoppages. Retrieved March 7, 2011, from

http://www.realclearsports.com/lists/work_stoppages_in_sports• Shapiro, W. (1994, August). Bummer of ’94. Retrieved March 7, 2011 from,

http://www.time.com/time/magazine/article/0,9171,981283-1,00.html• Hinkle, R. (2003). Major League Baseball v. Butterworth opinion. Retrieved March 6, 2011, from

Lexis Nexis Database. • Enotes.com. (2006). Sherman antitrust act of 1890. Retrieved March 7, 2011, from

http://www.enotes.com/business-finance-encyclopedia/sherman-antitrust-act• Act of July 2, 1890(Sherman Anti-Trust Act), July 2, 1890; Enrolled Acts and Resolutions of Congress,

1789-1992; General Records of the United States Government; Record Group 11; National Archives.• Luker, R. (2011, January). Economic uncertainty likely to intensify impact of work stoppage. Sports

Business Daily. Retrieved March, 6, 2011, from, www.sportsbusinessdaily.com