Cangrejeros de Santurce Baseball Club, LLC v. Liga de Beisbol Profesional de Puerto Rico, Inc.

1st CircuitJul 21, 2025

Split Score

SplitScore: 43/100

Case Summary

Disposition

Affirmed in Part

The First Circuit affirmed dismissal of the plaintiffs’ Sherman Act claims against Puerto Rico’s professional baseball league under the longstanding ‘business of baseball’ antitrust exemption. However, it vacated the district court’s dismissal of Puerto Rico antitrust and fair-competition claims and reversed dismissal of a § 1983 due-process claim, holding that state antitrust claims are not categorically pre-empted and that res judicata was applied in error.

Circuit Split Identified

Legal Issue

Whether state (or territorial) antitrust and fair-competition laws are categorically pre-empted by the federal "business of baseball" exemption under the Supremacy Clause, or whether such state claims may proceed absent an independent Commerce Clause barrier.

Circuit Positions

11th Circuit

State antitrust regulation of the business of baseball is pre-empted by federal law; Supremacy Clause bars such claims.

1st Circuit(this circuit)

No categorical pre-emption; state antitrust claims are not barred unless they impose an impermissible burden on interstate commerce under the Commerce Clause.

Conflict Summary

The Eleventh Circuit holds that federal antitrust policy impliedly pre-empts all state antitrust regulation of the business of baseball (Major League Baseball v. Crist, 331 F.3d 1177 (11th Cir. 2003)), whereas the First Circuit rejects that reading of Flood v. Kuhn and concludes that state or territorial antitrust claims are not automatically pre-empted; instead courts must conduct a Commerce Clause–specific analysis of burdens on interstate commerce before dismissing such claims.

Parties & Counsel

Parties

Appellant:Cangrejeros de Santurce Baseball Club, LLC; Santurce Merchandising LLC; Thomas J. Axon
Appellee:Liga de Béisbol Profesional de Puerto Rico, Inc.; Criollos Management, Inc.; RA12, Inc.; Indios de Mayagüez Baseball Club Inc.; Gigantes de Carolina Baseball Club Inc.; Leones de Ponce CF Inc.; Juan A. Flores Galarza; Impulse Sports Entertainment Corporation

Legal Counsel

Appellant:Jeffrey K. Kessler, Jeffrey J. Amato, Lauren E. Duxstad, Robert S. Pannullo, Lauren Gailey – Winston & Strawn LLP; Carlos A. Rodriguez-Vidal – Goldman Antonetti & Cordova, LLC
Appellee:Francisco E. Colón-Ramírez, José F. Cáceres Cardona, José M. Marxuach – Colón Ramírez LLC; Cáceres Law Offices, LLC; Marxuach LLC

Opinion Document