Fay Vincent has a (severely flawed) idea about how to compensate players

6 Comments

Former baseball commissioner Fay Vincent has a column in today’s Wall Street Journal in which, after noting how businessmen and actors get an equity stake or points on the gross in their deals, why baseball players can’t do the same thing and take an ownership interest in the team:

Mr. Pujols will in all likelihood negotiate a salary of around $35 million annually in a four- or five-year agreement. He and his agent will surely notice the enormous bite the tax collectors will take of that income. Why not take some of the pay in the form of a piece of the Cardinals franchise? Who would argue the Cardinals are not more valuable if they can keep him?

First: $35 million? Really? I kind of figured it would be like $30 million, but let’s save that for another day.

Second: As Vincent himself notes, baseball prohibits players from owning a stake in their team unless they get approval from the commissioner and unless, pursuant to Major League Rule 20(e), they sell their stake in the team if they switch teams.  Specifically, that rule provides that the agreement “shall provide for the immediate sale (and the terms there of) of such stock or other proprietary interest or financial interest in the event of the [player’s] transfer to or joining another Club.”

I’m just a dumb litigator, but I don’t think I’m wrong when I say that a player-ownership scenario that is designed to provide tax savings and greater flexibility is a tad bit hampered by a rule that requires the stake be divested immediately if the player switches teams.  That, my friends, would lead to an immediate taxable event. It would also severely hamper the value of the ownership stake, which would piss off both the player and the team’s majority owners, who likely don’t want to have to force chunks of the team out into the market the moment the team’s GM comes up with a spiffy trade.

Sure, you could change the rules about immediate divestment upon being traded, but then you run into the uncomfortable scenario of someone playing for the Cardinals, for example, who owns a stake in the Cubs. Or a Dodgers player — Juan Uribe, for example — whose wealth depends on the Giants having a greater franchise value.  In an age where franchise values are dependent upon regional sports network ratings, and those ratings are dependent upon winning and losing, that’s a recipe for disaster, is it not?

In other news, for all of Fay Vincent’s virtues, the game is way healthier, financially speaking, today than it was when he was commissioner. If this article is evidence of his business acumen, there may be a reason for that.

Rob Manfred says Tampa Bay must pick up pace on new stadium

Getty Images
4 Comments

ST. PETERSBURG, Fla. (AP) Baseball Commissioner Rob Manfred wants Tampa Bay to work a little quicker on getting the Rays a new ballpark.

Rays Principal Owner Stuart Sternberg has been working for nearly a decade to get a new stadium for the club and signed a three-year agreement with the City of St. Petersburg early in 2016 to search for a site in the Tampa Bay area. Manfred wants that search to pick up some steam.

“I think it’s fair to say we want the process to take on a better pace moving forward,” Manfred said Wednesday night at Tropicana Field, home of the Rays since their first season in 1998.

The Rays were averaging 15,815 fans per game before Wednesday night’s contest against the Toronto Blue Jays. That is just over half the major league average of 30,470. Tropicana Field and its location have been almost universally blamed as the reason for the poor attendance.

“I’ve been pretty clear that they need a new facility here, a major league quality facility in an A-plus location,” Manfred said. “It is time to move that decision to the front burner here in Tampa.”

The matter of how a stadium would be financed has been tabled until a site is determined, but Sternberg continued to express confidence in the Tampa Bay market.

“I’ve had the opportunity to bail on it many times over the years,” he said. “I won’t say this is a slam dunk, it’s certainly not. But I think we can do something that’ll at least double our attendance. That’s a lot to ask for.”

Manfred said Major League Baseball “doesn’t have a firm timetable” for what steps to take if the Rays fail to get an agreement to build a new stadium in the Tampa Bay area, but but added that “it is a topic of discussion in the industry, the lack of progress.”

More AP baseball: https://apnews.com/tag/MLBbaseball

Robinson Cano leaves game with hamstring tightness

Getty Images
Leave a comment

Bad news for the Mariners this evening: Robinson Cano left Seattle’s game against the Atlanta Braves with tightness in his left hamstring.

Cano walked off the field after legging out a double — his second of the game — in the third inning. He pulled up as he approached second base and walked off the field, accompanied by a trainer. There was no immediate word on the severity of the injury. The Mariners have a day off Thursday before opening a series at the Yankees on Friday night, so they have some time to evaluate him.

Cano is hitting .277/.377/.460 with 19 homers and 78 RBI on the year.