In October 1997, Carl R. Pohlad, on behalf of the Minnesota Twins
Partnership, announced that he had signed a letter of intent to sell the Twins to North
Carolina businessman Donald C. Beaver. The sale was contingent upon the Minnesota State
Legislature's refusal to authorize pubic funding for a new stadium by November 30,
1997.
Former Governor Arne H. Carlson and key legislators traveled to
Milwaukee to confer with then-Acting Commissioner of Major League Baseball (MLB) Allan
"Bud" Selig. Selig informed Governor Carlson that if a publicly funded stadium
was not authorized and built, MLB team owners would approve the Twins' move. The
Minnesota Legislature subsequently rejected all stadium bills introduced in the special
legislative session called by Governor Carlson.
On December 17, 1997, the Minnesota Attorney General served the Twins
with civil investigative demands (CIDs) as part of an investigation into possible
violations of state antitrust laws. The CIDs served on the Twins requested documents
concerning the financial viability of the Twins' current stadium (Hubert H. Humphrey
Metrodome), the methods used by other professional baseball teams to obtain stadia, the
potential purchase of the Twins by Beaver, and the 1961 relocation of the Washington
Senators to Minnesota. In addition, the CIDs included interrogatories seeking information
on the Twins' effort to produce a new stadium, as well as information on the
structure, governance, and revenues of MLB.
The Twins then filed a motion for a protective order. The Twins argued
that they were exempt from Minnesota's antitrust laws because the U.S. Supreme Court
previously held that the business of professional baseball is exempt from compliance with
federal antitrust laws. However, the Ramsey County District Court rejected this argument
and ordered the Twins to comply with the CIDs. The Minnesota Court of Appeals denied the
Twins' request for review, holding that the issues presented were
"premature."
The Minnesota Supreme Court reversed the district court order, stating
the Twins' were under no obligation to comply with the CIDs because the business of
professional baseball is exempt from federal and state antitrust laws. The Supreme Court
rejected the Attorney General's argument that the extent of professional
baseball's exemption and the effect of the Commerce Clause can be litigated properly
only after the state makes specific charges and a factual record is developed.
The Minnesota Supreme Court concluded that the sale and relocation of a
baseball franchise is an integral part of the business of professional baseball and falls
within the antitrust exemption. Enforcement of the CIDs against the Twins is therefore
outside the scope of the Attorney General's authority. As a result, the district
court erred when it issued an order compelling compliance with the CIDs. Therefore, the
Twins were entitled to a protective order.
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You Make the Call. . . Index
"You Make The Call..." is a newsletter published four times per year (spring,
summer, fall, winter) by the National Sports Law Institute of Marquette University Law
School, PO Box 1881, Milwaukee, Wisconsin, 53201-1881. (414) 288-5815, fax (414) 288-5818,
munsli@vms.csd.mu.edu. (www.marquette.edu/law/sports/call.html).
This publication is distributed via fax and email to individuals in the sports field upon
request.
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Editorial Staff:
Paul M. Anderson, Editor & Designer
Kirsten Hauser, Associate Editor
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Copyright © 1999 -- All rights reserved.
