Evan Grant reports that if the Rangers sale isn’t done by June, the team will have to take more money from Major League Baseball to make ends meet.
Last year baseball extended the team a $25 million line of credit. They used $16 million of it in 2009 to meet payroll obligations. Grant reports that both payroll and revenue are basically flat compared to last year, which suggests that baseball will have to go beyond that original $25 million. As Grant notes, since baseball is a creditor which expects its money back, the more money it gives to the team the less there is available for the troublesome, sale-blocking creditors, which makes closing the deal even harder. See, cycle, vicious.
What’s worse is that if we get to June and the team is still on the dole, they will be unable to pay real bonuses to their draft picks and, instead, will be required to pay MLB-imposed slot prices, which could seriously hinder the Rangers’ ability to, you know, get good players.
There have been a lot of self-imposed deadlines in this transaction, none of which have done much to spur real action by the parties. The end of May, however, brings with it serious consequences if the deal is not yet done. It would seem, then, that everyone had best get busy.
The Rockies announced a minor swap of relief pitchers on Monday evening. The Cubs sent lefty Zac Rosscup to the Rockies in exchange for right-hander Matt Carasiti.
Rosscup, 29, was designated for assignment by the Cubs last Thursday. He spent only two-thirds of an inning in the majors this year and has a 5.32 career ERA across 47 1/3 innings. Rosscup has spent most of the season with Triple-A Iowa, posting a 2.60 ERA in 27 2/3 innings.
Carasiti, 25, spent 15 2/3 innings in the majors last year, putting up an ugly 9.19 ERA. With Triple-A Albuquerque this season, he compiled a 2.37 ERA and a 43/13 K/BB ratio in 30 1/3 innings.
The Associated Press reported that on Monday, the U.S. Court of Appeals for the 9th Circuit affirmed a district court ruling which holds that the minor leagues are exempt from federal antitrust law, just like the major leagues.
In 2015, four minor leaguers sued Major League Baseball, alleging that MLB violated antitrust laws with its hiring and employment policies. They accused MLB of “restrain[ing] horizontal competition between and among” franchises and “artificially and illegally depressing” the salaries of minor league players.
The U.S. Court of Appeals said the players failed to state an antitrust claim, as the Curt Flood Act of 1998 exempted Minor League Baseball explicitly from antitrust laws.
This case is separate from the Aaron Senne case in which Major League Baseball is accused of violating the Fair Labor Standards Act. That case was recertified as a class action lawsuit in March. In December, Major League Baseball established a political action committee (PAC), which came months after two members of Congress sought to change language in the FLSA so that minor league players could continue to be paid substandard wages.