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They lured away many major-league stars and cut into the owners’ profits (the Federal League’s Baltimore Terrapins forced the Baltimore Orioles, which was a minor-league team at the time, to sell the contract of its star, In 19, the Federal League fielded teams in eight cities. The most serious challenge to that setup came from the Federal League. The American League came along in 1901, and it survived to form the two-league cartel we’ve had ever since. Interlopers challenged the National League with the American Association (1881-91), the Union Association (1884), the Players’ League (1890). Monopoly profits always tempt outsiders to muscle in. The players could either take what the magnates offered or find another line of work. There were only 16 teams, split between the American and National leagues, from 1901 until 1961. Fans got only the baseball the cartel chose to provide. Eight team owners agreed to play only among themselves, deny entry to any other teams into the league and, above all, recognize one another’s exclusive right to their players via the notorious reserve clause, which gave teams the right to a player after the player’s contract expired.
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The cartel was founded in 1876 as the National League of Professional Baseball Clubs.
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antitrust laws, even though it is obviously a cartel in which 30 owners agree to limit their economic competition. Major League Baseball has long enjoyed a special exemption from U.S.