The City of San Jose fired a salvo in the appellate court case against Major League Baseball. In the reply brief submitted yesterday, the City asserts that a decision by the Ninth Circuit court should be made before the land option agreement expires in November.
A decision on the antitrust issues concerning the Athletics’ move should be made before November 2014 or the Athletics may choose another site for their new stadium. Reed Decl., ¶22. If that occurs, San José will suffer irreparable harm because an eventual judgment in the City’s favor will be too late to allow the Athletics to successfully relocate to San José.
While damages for the economic harm caused by MLB would still offer some remedy to the City of San José, such a remedy is inadequate. Ultimately, MLB’s illegal conduct would have been successful in preventing free competition in the baseball market. Dkt. No. 1, ¶ 133; Gregory Decl., ¶2, Exhibit A. The only true remedy is an expedited briefing schedule and hearing with a final decision from this Court prior to November 8, 2014 in order that the Athletics will be permitted to exercise the option set forth in the Option Agreement.
This seems like a hollow stance for the City to have, since the land won’t necessarily go away just because the option agreement will expire. It will still be there, waiting for development, whether from a ballpark or something else, and in the future the land could easily be negotiated at the same price, as long as Santa Clara County and the Successor Agency signed off on it.
The other takeaway is the phrasing in the first paragraph: “…or the Athletics may choose another site for their new stadium.” Well, that would certainly be a November Surprise, wouldn’t it?
In addition, the City argues that MLB has delayed long enough – which it certainly has, but MLB has responded time and time again that it can make a decision on whatever timeline it chooses thanks to its antitrust exemption. If the judge rules in the City’s favor, that would be an indication that there’s substance to San Jose’s argument about economic damage.
Speaking of the antitrust exemption, another lawsuit was filed yesterday against MLB. This time it’s a potential class action suit in federal court alleging that baseball fails to pay minor league players minimum wage. At Fangraphs, Wendy Thurm wrote an examination of the lawsuit and its ramifications. With this suit and related ones, attacks on MLB’s broadcast blackout policy, and the City going after territorial rights, the antitrust exemption is defending itself on at least three fronts. Essentially all of these lawsuits go after the outdated notion that baseball is not a business, but rather a number of recreational exhibitions. As an $8 billion enterprise, you have think that at some point that notion shouldn’t hold water.