Collusion in Major League Baseball: An Analysis of Ethical Implications

by | May 7, 2024 | Management

 

After reading the Collusion in Major League Baseball Case from our textbook, respond to the following prompts in one to four sentences:

Based on the information in the case (and as of the case’s date, 1988-1990)

According to the case’s description, during the following periods did collusion exist between MLB owners and, if so, was it tacit or explicit (briefly describe why)?
In the offseason preceding the 1985 season
In the offseason preceding the 1986 season
In the offseason preceding the 1987 season
In the offseason preceding the 1988 season
Why might Major League Baseball be at risk if there is not explicit collusion, but there is tacit collusion (i.e. not communicated between owners, nor through the commissioner’s office)?
Which industry attributes affected the likelihood of successful collusion in Major League Baseball (see Table 7.6) and how so?
Additional information: Between 1984 and 1988, there were 26 MLB teams. New teams could not be added without approval of existing teams’ owners, andMajor League Baseball had limited ability to prevent other parties in its supply chain from working with other leagues (in baseball or in other sports)
How are the ethical implications of collusion in Major League Baseball similar and/or dissimilar from other examples of collusion (specific as given by the textbook, or in general as described by the textbook)?

 

Sample Answer

Sample Answer

 

Title: Collusion in Major League Baseball: An Analysis of Ethical Implications

Introduction

Collusion in Major League Baseball during the late 1980s involved covert agreements among team owners to suppress player salaries, leading to a significant ethical dilemma within the sport.

Thesis Statement

The collusion in Major League Baseball during the specified periods was primarily tacit in nature, posing substantial risks to the integrity of the game and raising ethical concerns within the industry.

Collusion Existence and Nature

1. In the offseason preceding the 1985, 1986, 1987, and 1988 seasons, collusion between MLB owners existed, primarily through tacit agreements.
2. The tacit collusion, not overtly communicated but implied through owners’ actions, posed risks as it hindered players’ rights to fair compensation and distorted market dynamics within the league.

Risks of Tacit Collusion

1. Major League Baseball faces significant risks with tacit collusion as it undermines free market principles and fairness in player contracts.
2. Without explicit communication or oversight by the commissioner’s office, tacit collusion can breed mistrust among stakeholders and damage the league’s reputation.

Industry Attributes and Collusion Likelihood

1. Industry attributes such as a limited number of teams and lack of regulatory mechanisms contributed to the success of collusion in Major League Baseball.
2. The absence of competitive pressures and barriers to entry made it easier for owners to engage in collusive practices without facing significant repercussions.

Ethical Implications of Collusion

1. The ethical implications of collusion in Major League Baseball are akin to other industries where anti-competitive behavior distorts market dynamics and harms stakeholders.
2. While collusion may serve owners’ interests in the short term, it undermines the core values of fairness and competition that define professional sports.

Conclusion

The case of collusion in Major League Baseball sheds light on the ethical challenges posed by tacit agreements among owners, highlighting the need for transparency and accountability in preserving the integrity of the sport. Addressing these issues is crucial to ensuring a level playing field for players and upholding the principles of fairness and competition in professional sports.

 

 

 

 

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