Reaffirming its earlier position, the United States Supreme Court rules, 7-2, that baseball is a sport and not a business
On November 9, 1953 – – Reaffirming its earlier position, the United States Supreme Court rules, 7-2, that baseball is a sport and not a business and therefore not subject to antitrust laws. which are a collection of federal and state government laws that regulates the conduct and organization of corporations, generally to promote fair competition. It maintains the game’s controversial reserve clause, which binds players to their teams…The ruling is made in a case involving New York Yankees minor leaguer George Toolson, who refused to move from Triple-A to Double-A.
Pitcher George Toolson was one of the early challengers to baseball’s reserve clause when he was traded to the New York Yankees organization. He was first assigned to Newark, then to Binghamton but refused to report to Binghamton and was placed on the ineligible list. He moved to California and sued the Yankees, both major leagues, the Pacific Coast League and two PCL clubs, claiming he had been effectively banned from baseball. He asked for $375,000 in damages but the case was thrown out in 1951. The case reached the Supreme Court on appeal in 1953, but the case was ruled in favor of baseball.
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Sources:
Baseball Reference November 9
National Pastime November 9