US: 2013’s first pitch marks centennial of baseball’s first antitrust debacle

The baseball season has officially begun, but this time of year also marks another anniversary. It’s been 100 years since baseball faced a major antitrust crisis, the result of Detroit Tigers’ player Ty Cobb’s holdout. Just before the 1913 baseball season, Cobb reached a .409 average and earned his sixth consecutive batting title, thus demanding a raise which the team’s owner, Frank Navin, refused to give. Due to the nature of his contract – which banned Cobb from playing for any other team than the Tigers – Cobb quit baseball. Then-Georgia Senator Hoke Smith contacted Cobb suggesting the contractual clause monopolizing players was in violation of the Sherman Act. The event marked the first time a US Senator initiated antitrust action in what was then a frequent complaint by players concerning their contracts. Senator Smith initiated an investigation into the case, resulting in a settlement in which Cobb landed a $12,000 salary.

Full Content: Bloomberg

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.