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2 You Make the Call 1 (1999-2000)

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Volume  2, Number 1


                                     { Summer 19991




Minnesota  Twins Partnership v. State of Minnesota, 592 N.W.2d 847 (MN, April 29, 1999)

MINNESOTA TWINS EXEMPT FROM ANTITRUST INVESTIGATION

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


@ Copyright 1999, National Sports Law Institute of Marquette University Law School


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