Report: MLB to seize Rangers, complete sale, get sued


That’s the logical conclusion if what Sports Business Journal’s Daniel Kaplan is reporting is true:

MLB as soon as this week plans to dramatically alter the
course of the standoff between creditors and the owner of the Texas
multiple sources said last week, a development that could include the
seizing the franchise.

Were the league to seize the team under its “best interests of
baseball”rule, MLB could sell the club to the group led by Chuck
Greenberg and
Nolan Ryan without, the league believes, the creditors blocking the
deal, these
sources said. But were MLB to choose that course — and late last week,
situation was still fluid — financial sources predicted a furious
response from the creditors that could involve an involuntary
bankruptcy petition
on behalf of the baseball team.

I get the reasoning: the creditors are owed money by Hicks Sports Group, the debt is not secured with a lien on the baseball team itself (MLB does not allow this) and Major League Baseball can kick Hicks Sports Group out of the ownership club if it wants to, leaving the creditors to fight with Hicks after the sale is done.

But such a move is almost certain to throw the whole matter into court, with the creditors almost certainly filing to get an injunction stopping the sale, because without the sale of the team at issue, the creditors lose all their leverage. Maybe they don’t get an injunction — if your beef is ultimately over money, you’re not supposed to be able to enjoin a business deal; rather, you’re supposed to let it all play out and get your money later — but depending on the court and the way the complaint is written and a bunch of other factors, it could happen. If so, and the Rangers are placed in legal limbo during the pendency of the lawsuit, the nightmare scenario that was described last week — indefinite MLB stewardship, no money for the draft, etc. — comes to pass.

But even if the sale is not enjoined, Major League Baseball is still stuck in a multimillion dollar lawsuit (and even if the sale is not held up over it all, you can bet that MLB will be named a party in the suit).  The calculation, one presumes, is that baseball is better off having the Rangers in Greenberg’s hands while fighting a lawsuit than it is to remain in the current stalemate.

If so, it tells you how ugly the stalemate is, because lawsuits like this are never fun, especially if they have the potential to have outsiders probe specific-team finances, which Major League Baseball is historically loathe to allow.

Popcorn anyone?

Dan Haren plans to retire after the playoffs are over

Dan Haren
Leave a comment

Dan Haren, who said two months ago that he was leaning toward retiring after the season, reiterated those plans following the Cubs’ regular season finale Sunday.

At age 34 he started 32 games for the Marlins and Cubs with a 3.60 ERA and 132/38 K/BB ratio in 187 innings, so Haren would have no problem finding work and a solid paycheck for 2016.

However, he’s not expected to part of the Cubs’ playoff roster and told Jesse Rogers of ESPN Chicago:

That was it for me. If I have to pitch in the postseason, I’ll be ready for sure. Happy the way the last few starts have gone. Being able to contribute to this amazing team. I’m just thankful to be a part of it. If I don’t pitch in the postseason, that’s it. It’s been fun. Hopefully there’s a lot more games to go. … If my name is called, I’ll be ready.

Injuries has lessened Haren’s overall effectiveness in recent years, but he’s remained a solid mid-rotation starter and has pitched 13 seasons in the big leagues with a 3.75 ERA in 2,419 innings. He made three All-Star teams and earned more than $80 million.

Supreme Court rejects San Jose’s appeal in the A’s case

The judge's gavel is seen in court room 422 of the New York Supreme Court at 60 Centre Street February 3, 2012. REUTERS/Chip East
1 Comment

The U.S. Supreme Court has rejected an appeal from the city of San Jose arising out of the failure of the city’s antitrust claims against Major League Baseball. The lower court losses which frustrated the city’s lawsuit will stay in place.

By way of background, San Jose sued Major League Baseball in June 2013 for conspiring to block the A’s relocation there on the basis of the San Francisco Giants’ territorial claim. The city said the territory rules violated federal antitrust laws. As I wrote at the time, it was a theoretically righteous argument in a very narrow sense, but that the City of San Jose likely did not have any sort of legal standing to assert the claim for various reasons and that its suit would be unsuccessful.

And now it is.


If there is ever to be a righteous legal challenge of the territorial system, it’ll almost certainly have to come from a club itself. Given the way in which MLB vets its new owners, however, and given how much money these guys rake in, in part, because of the territorial system, its unlikely that that will ever happen.