We all were recently treated to a gaggle of politicians who thought that in hindsight they needed to save a small number of baseball players from themselves. To make matters worse, they trotted out two sets of parents whose sons had committed suicide while taking steroids. Naturally, these do-gooder politicians were badgering ball players so they could "save the children."
In light of this we thought it might be worth a look to see a brief history of what the history of baseball, politics and government has looked like over the years. What follows is a relatively disjointed and albeit surface look at the subject of Baseball & government. Never the less it is interesting to see that there is no end to the trouble that politicians can create.
In looking for government involvement in the lives of baseball we didn't have to go very far. It seems that the people of Chicago are having their own troubles. The groups that own buildings near Wrigley Field rent out space on the rooftops overlooking the 84-year-old ballpark. Apparently the City of Chicago isn't getting their fair share of the action. "Now the city is reaching for some of the action. The alderman whose ward includes Wrigley has proposed an ordinance that would require building owners who sell space on their roofs to obtain a $500 license every year. The law would also ban barbecues and the sale of hard liquor and regulate food preparation. Spectators would be required to pay the city's 7% amusement tax. That means tickets would have to be sold in advance -- not on the day of the game.
The above story is only a tiny microcosm of the problem we all face. We think the point of this story will be same one we find in all walks of life and that is "Politicians rarely solve a problem but rather they make life more difficult and costly for all of us."
Any discussion of baseball and government has to begin by discussing Baseballs anti-trust exemption. The Federal Government stepped into baseball in a big way in 1922 when they awarded Baseball an Anti-trust exemption. As a reminder any business that operates across state borders participates in interstate commerce and is subject to antitrust legislation. Attempts to control trade and monopolies may be deemed illegal by federal circuit courts under the Sherman and Clayton acts. Baseball has been exempt from these antitrust laws since 1922, when the Supreme Court ruled in its favor in Federal Baseball Club of Baltimore, Inc. v. National Baseball Clubs. The Supreme Court determined even though there was scheduling of games across state lines, those games were not intrastate events since the travel from one state to another was "not the essential thing," Justice Oliver Wendell Holmes wrote in the decision. The most important part of the exemption is that teams can't move unless baseball allows them to. In Football e.g. The Raiders or the Browns / Ravens can move because they aren't subject to the exemption. Curiously, there are a number of court decisions that state "the anti-trust exemption is wrong but their nothing a court can or will do about it. Courts have stated that only congress can solve the problem. The Anti-trust exemption is simply an oddity taken for granted but one that no one seems able to explain.
Recently, and as they have done in the past, Congress threatened to repeal the anti-trust exemption if baseball didn't clean up their steroid problem.
Let's step back even farther in time to learn more. Before the Supreme Court's antitrust decision, baseball teams moved like gypsies. In the early 1900s, the original Baltimore Orioles relocated to New York, where they were renamed the Highlanders and later became the Yankees. Baltimore soon got a new team, again called the Orioles, in the minor International League, but it competed against major-league teams and often beat them.
In 1913, a new league formed to rival the National and American leagues, this league was called the Federal League. The city and its newspapers were breathless about the arrival of the new Federal League team called the Baltimore Terrapins. So exited were the citizens of Baltimore about their new team that the House of Delegates voted to make their arrival a state holiday. Not that it matters, but why any one would name their team after a turtle is beyond my but that is an article for another time. I don't think it's an accident that no pro sports team since has named their team after turtles.
The MLB Orioles' owner Jack Dunn knew his team was in trouble when 1,500 fans showed up to watch the Orioles play the champion New York Giants, with local star Babe Ruth pitching, while the Terrapins attracted 30,000 that same afternoon. Eventually the Orioles did so poorly that they traded Babe Ruth to the Red Sox for $30,000. For reasons that remain unexplained, we note that no curse ever descended upon the Orioles in lieu of this trade.
After two years of battling with the established leagues, the Federals folded, too. Ned Hanlon, owner of the Terrapins and before that the Orioles, sued. He argued that the other owners colluded to destroy his league and his team. Baseball's powers were able to get the case heard in Federal court with a judge named Landis who later becomes legendary as the first commissioner of major league baseball. The judge delayed a ruling long enough that the Federal Base Ball Club of Baltimore Inc. folded.
But the Court of Appeals in Washington later ruled Hanlon's group deserved $80,000. That award would actually be $240,000 because antitrust damages are tripled by law. Baseball appealed to the U.S. Supreme Court, which heard the case on April 19, 1922. Six weeks later, the court ruled 9-0 in favor of the National League of Professional Base Ball Clubs.
The justices concluded that baseball wasn't subject to antitrust regulation. The law forbids businesses that engage in commerce across state lines from colluding to harm competitors. The court concluded that baseball exhibitions of the day weren't commerce and the state lines teams crossed were incidental to the actual playing of the games. "Transport is a mere incident, not the essential thing," Holmes wrote in the justices' decision. "The exhibition, although made for money, would not be called trade or commerce in the commonly accepted use of those words."
As we've stated above the primary effect of the exemption is that team movement has been more volatile in other sports -- a fact appreciated in Baltimore. The city watched its pro basketball team move to suburban Washington in 1973, mourned its football team's fleeing in 1984 and welcomed a new NFL team from Cleveland, which became the Ravens, in 1996.
But baseball's exemption has also helped fortify the Yankees and an economic structure of haves and have-nots. If baseball, like football, held less sway over the location of its franchises, a third team might long ago have located in the greater New York area, diluting that TV market and the Yankees' ability to scoop up the top free agents every year, said Bruce K. Johnson, an economics professor at Centre College in Kentucky. The New York Giants in football haven't been nearly as dominant as the Yankees in baseball, because they can't so reap the fortune of the New York market.
Some 50 years ago Congress felt there was more work to do and this time it was about people seeing baseball at all. Concerned that Major League Baseball was still hemmed into the northeast corner of the country - no farther west than St. Louis and no farther south than Washington - Congress conducted hearings about baseball expansion. The tone of those hearings was significantly brighter than what is expected. New York Yankees manager Casey Stengel, known for speaking nonsense, testified: "I'm in the baseball business, it's been run cleaner than any baseball business that was ever put out in the hundred years at the present time." To peals of laughter, Mickey Mantle followed his manager by saying: "My views are just about the same as Casey's." The hearings worked, under threats of repealing the "exemption" the Giants and Dodgers soon moved to the West Coast, and by 1962, both the American and National Leagues had expanded.
It seems that no other professional sport animates Congressmen and Senators the way Baseball does and in fact Football rarely comes up in Congress only Baseball. In spite of all the talk most of the sports legislation Congress considers every year never passes. But big hearings and proposed legislation often have an impact on professional sports, if only because leagues make changes to avoid the enactment of legislation. The baseball exemption becomes a giant hammer for congress and they frequently wield it in order to get Baseball to act in a manner Congress deems prudent.
After watching the latest steroids hearings I am personally wondering why congress doesn't step in and try eliminate the Designated Hitter rule. It seems that they have some influence over the league.
1913: Rep. Thomas Gallagher, D-Ill., calls for a congressional investigation
into monopolistic actions by baseball after a contract dispute between
Ty Cobb and the Detroit Tigers.
1927: A bill is introduced to create a federal baseball commission to take
over the duties and responsibilities of the commissioner's office. The bill
does not pass.
1945: New York Rep. Vito Marcantonio, a member of the American Labor
party, calls for an investigation into why there were no black players in the
sport, but there is no record of Congress acting on the request.
1951: The House Judiciary Committee's antitrust subcommittee holds a
series of hearings on "monopoly power" in baseball. Lawmakers threaten
to revoke baseball's antitrust exemption to prod baseball to expand to the
West Coast. Ty Cobb is among those testifying.
1957: The subcommittee holds more hearings after the Brooklyn Dodgers
and New York Giants announce plans to move to the West Coast. Baseball
Commissioner Ford Frick predicts a "chaotic scramble" for players if the
antitrust exemption and reserve clause are eliminated. The reserve clause
kept players on one team unless they were traded or released. Hall of Fame
pitcher Bob Feller says owners treat players like "pawns."
1958: Baseball stars Feller, Mickey Mantle, Ted Williams, Stan Musial,
Robin Roberts, Eddie Yost and Jackie Robinson testify before the Senate
Judiciary Committee's antitrust panel. New York Yankees manager Casey
Stengel confounds the panel with his rambling "Stengelese" testimony.
1971: Two months after the Washington Senators' final game, four U.S.
House members fly to Arizona to confront owners about moving the team
to Texas for the following season.
1976: Following the announcement that the American League would add
teams in Seattle and Toronto the following season, Baseball Commissioner
Bowie Kuhn tells the Select House Committee on Professional Sports that
National League expansion is inevitable. The committee was formed after
baseball refused to put a team in Washington. Despite Kuhn's assurances,
the National League would not expand again until 1993.
1986: Baseball Commissioner Peter Ueberroth tells the House Select
Committee on Narcotics Abuse and Control that baseball has taken care of
its drug problem.
1988: The Senate Task Force on the Expansion of Major League Baseball
warns baseball to come up with a timetable for expansion or face the repeal
of the sport's antitrust exemption. In 1991, baseball awards teams to Denver
and Miami, to begin play in 1993.
2002: The House Judiciary Committee grills Commissioner Bud Selig over
baseball's plans to eliminate the Minnesota Twins and Montreal Expos before
the following season. Minnesota Gov. Jesse Ventura, a former professional
wrestler, sits next to Selig and joins in the criticism. Baseball eventually
abandons the plan.
2004: Sen. John McCain, R-Ariz., warns baseball that unless it comes up with
a more comprehensive steroids testing policy, his Commerce Committee will
come up with "legislative remedies." Baseball announces a stronger steroids
testing plan the following year.
Hold on to your shorts, because there is more. In 2003 our Nannies in congress decided to get their underwear in a twist about Ephedra. Congress began investigating over-the-counter diet supplements containing ephedra since Broward County (Fla.) coroner Joshua Perper determined the substance contributed to the Feb. 17 heatstroke death of Baltimore Orioles pitching prospect Steve Bechler. Congress told Bud Selig and Fehr that Ephedra needed to be banned. Shortly, there after the FDA did indeed outlaw the sale of Ephedra and it was primarily due to the death of Steve Bechler. Ephedra had been on the market in various forms for roughly 15 years and there were no more than about 20 deaths that can be remotely attributed to Ephedra, but "even if we can save one life isn't worth it." Why alcohol or cars are legal eludes me.
In case anyone isn't watching a federal distinct court just ruled that the FDA didn’t have the authority to ban a "food supplement." The FDA can monitor drugs but not food supplements and Ephedra is a food supplement. This case will be appealed to the Supreme Court.
Now that we've seen the hammer that politicians wield against the teams, what about the hammer that politicians wield against the citizens of the USA who might not even be baseball fans. Whether people like it or not, they support Professional sports of all varieties. Wealthy owners are the recipients of public largess in large quantities and it is obvious that somewhere, somehow those same politicians who attempt to frighten owners then turn around and get greased by these same owners. Obviously this is a generalization and I have no specific proof of any greasing but hey, I can make incendiary remarks if I like.
The following information was culled from the "Travel Industry Association of America" http://traveltax.msu.edu/news/Stories/tia3.htm This group lobbies against taxes that are charged out of towners who are asked to subsidize professional sports teams with a variety of taxes. The following are 17 examples.
Cities either using or considering travel tax revenue to support Sports Facilities:
Anaheim, California - A 1% hotel occupancy tax is used to finance
Arrowhead Pond, home of the NHL Mighty Ducks.
Atlanta, Georgia - Atlanta was successful in passing legislation at
the state level allowing Atlanta to charge a 3% car rental surcharge
to finance a new downtown arena for the NBA Atlanta Hawks. Other
Georgia cities such as Savannah and Marietta are now following suit.
Also, nearly half of the 7% local tax on hotel stays is used to finance
the Georgia Dome, home of the NFL Atlanta Falcons.
Broward County, Florida - An additional 2% hotel tax was approved
this year in order to fund a new arena for the NHL Florida Panthers.
Buffalo, New York - Crossroads Arena, to be completed next year
and used by the NHL Buffalo Sabres, will be partially financed by the
county hotel occupancy tax.
Chicago, Illinois - Comiskey Park, home of the MLB Chicago White
Sox, is partially financed with a 2% hotel occupancy tax. Additional
tourism taxes might be used to finance a new stadium for the NFL
Chicago Bears.
Detroit, Michigan - In November, voters in Wayne County approved
an additional 1% hotel tax and 2% auto rental tax that will partially
finance new side-by-side, downtown stadiums for the NFL Lions
and MLB Tigers. These taxes will go into effect on January 1, 1997.
Houston, Texas - Harris County voters narrowly approved a plan in
November that prohibits property taxes from being used to finance
a new baseball stadium for the Houston Astros, but lists among other
possible revenue sources a local 5% auto rental tax. Like other Texas
cities seeking new sports facilities, Houston will very likely seek approval
of a plan in the Texas legislature next year that will permit them to levy
local car rental taxes.
Jacksonville, Florida - A 2% portion of the hotel tax is used to finance
the Gator Bowl, home of the NFL Jacksonville Jaguars.
Miami, Florida - Of the 12.5% total hotel tax, a 2.3% portion is used to
fund various sports facilities in Dade County. There are also plans to
use an unspecified portion of the 3% convention development tax charged
on hotel stays to help finance a new arena for the NBA Miami Heat.
New Orleans, Louisiana - A 4% stadium and exposition district tax is
charged on hotel stays to finance the Superdome, home of the NFL
New Orleans Saints.
Orlando, Florida - A 1% portion of the hotel tax is used to finance the
Orlando Arena, home of the NBA Orlando Magic. Additionally, Orange
County approved a 1% levy on hotels to raise money in order lure and
house a new MLB team, which has never happened. The revenue is
reportedly being used on sports and recreation facilities in the county.
Phoenix, Arizona - America West Arena, home of the NBA Phoenix Suns,
was partially financed with additional taxes on lodging (1%) and car rentals
(2%). Also, Maricopa County charges a $2.50 surcharge on each car
rental to support baseball spring training facilities.
San Antonio, Texas - There is much discussion about pursuing legislation
next year to levy a car rental tax to finance a new arena for the NBA San
Antonio Spurs. Several other Texas cities are eyeing this closely.
Seattle, Washington - A new 2% car rental surcharge will help finance
the construction of a new baseball stadium for the Seattle Mariners.
Tampa, Florida - Unspecified portion of the 5% tourist development
tax charged on hotel stays is used to finance the Ice Palace, home
to the NHL Tampa Bay Lightning. Local officials attempted to pass
legislation at the state level to charge a new 5% car rental tax in order
to help finance a new stadium for the NFL Tampa Bay Buccaneers.
This effort failed, and Tampa Bay voters recently approved a half-cent
local sales tax increase for a new stadium and other government
programs.
Tucson, Arizona - Pima County charges $3.50 on each car rental to
support rehabilitation of a baseball spring training stadium and related
facilities.
West Palm Beach, Florida - A portion of the 4% local tourist development
tax charged on hotel stays is used to finance a local sports commission
and unspecified sports facilities, at approximately $3.3 million annually.
I will comment that Coors Field was the greatest civic project I am aware of. Everyone is Denver is very well aware of the positive changes that occurred in Lower Downtown Denver. I would have to do some research but I think that what happened in Denver is an oddity. I don’t think other stadia have had a similarly awesome effect.
As we all can see and whether we like or not, Pro-Sports & Baseball are a hugely important part of every big city in the country and because of the visibility of a pro-sports team politicians will step in to ham it up in front of the camera and get publicity and try to prove that they "care about our quality of life." I for one would like to see them disappear from the Sports lime light and go muck other things up. (actually I'd like most of them to disappear altogether) Today it was steroids, tomorrow is any ones guess. But we can all rest assured that from time to time Politicians will rear their ugly mugs & do what they can to get "involved", save Baseball and society.