Originally Posted by
A Fan
To answer your question,
Baseball: Major League Baseball (MLB) enjoys a unique antitrust exemption, established by the Supreme Court in 1922 (Federal Baseball Club v. National League), and upheld in later rulings. This exemption, which Congress has never fully revoked, essentially allows MLB to operate as a legal monopoly in ways other sports leagues cannot. It shields the league from antitrust challenges regarding things like franchise relocation, media rights, and the minor league system. This legal protection creates a framework where MLB can regulate player movement, draft systems, and revenue-sharing agreements without facing the same level of antitrust scrutiny that other industries would.
Football: The NFL, on the other hand, relies on unionization to create stability and manage challenges. The players’ union, the NFL Players Association (NFLPA), collectively bargains on behalf of all players. This means that issues like revenue sharing, salary caps, free agency rules, and even NIL-like endorsements are negotiated and agreed upon through a formalized labor agreement. The existence of a union gives the league an important legal shield: under U.S. labor law, collective bargaining agreements are exempt from antitrust scrutiny. This allows the NFL to impose rules that might otherwise be challenged as anti-competitive, like the draft or franchise tag system.
College sports lack either of these protections.
1. No Antitrust Exemption: Unlike MLB, the NCAA does not have an antitrust exemption. As a result, its rules—especially those regarding compensation—are vulnerable to legal challenges under federal antitrust law, as we’ve seen in cases like O’Bannon v. NCAA and Alston v. NCAA. This leaves the NCAA constantly defending its regulations in court, with little ability to create legally durable guardrails.
2. No Unionization: College athletes aren’t currently unionized (though efforts are underway in some places), so there’s no collective bargaining agreement to serve as a framework for rules about NIL, revenue sharing, or transfers. If the NLRB eventually grants athletes employee status, unionization could change that dynamic—but it would also fundamentally alter the structure of college athletics by forcing schools to treat athletes as employees subject to labor law.
As earlier stated, The NCAA exists in a much more precarious legal and structural position. It has no overarching legal exemption or labor agreement to stabilize the system, which is why it’s struggling to adapt to the modern realities of NIL, revenue sharing, and player movement. This lack of protection leaves it far more exposed to lawsuits, and regulatory challenges.
Thus chaos will reign until unionization since there is no political will for an antitrust exemption.