The pennant race is a Baseball term used to describe the time period towards the end of the year, around mid-late august and on to the playoffs. The pennant is the name for the championship of the division, whether it be the national league or the American league, and the race is all the games leading up to the World Series that determine who will represent each league.
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When a baseball team has some theoretical chance of making the playoffs, they are involved in a pennant race or chasing the pennant.