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

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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.

Astros name Justin Verlander ALCS MVP

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Following the Astros’ decisive 4-0 shutout over the Yankees on Saturday night, the team crowned ace Justin Verlander the Most Valuable Player of the American League Championship Series. Hall of Fame outfielder and former MLB manager Frank Robinson handed the award to Verlander, who was beaming as he thanked his teammates and members of the Astros’ organization.

“I’ve got to say, it came down to the wire, and one thing kept going off in my head was Dallas,” Verlander told the crowd gathered at Minute Maid Park. “When he called me, he said that I won’t regret my decision to join the Houston Astros. And here we are right now, it’s the best feeling in the world. We’ve got four more wins to win a World Series, and I do not regret my decision to come here. This is the best feeling a player can have. So, thank you.”

Among a cast that boasted the likes of Jose Altuve, Carlos Correa and Dallas Keuchel, among others, Verlander was spectacular. He locked down a complete game win in Game 2, holding the Yankees to one run on five hits and a walk and striking out a postseason-high 13 batters. In Game 6, he saved the Astros from elimination with seven scoreless innings, helping propel the club to their eventual 7-1 finish that set up their series-clinching finale on Saturday.

The 34-year-old righty also took his place among some postseason greats. Thanks to an eight-strikeout outing on Friday night, his collective 136 postseason strikeouts are good for sixth-most in MLB playoff history, just a smidgen shy of Tom Glavine (143), Mike Mussina (145), Roger Clemens (173), Andy Pettitte (183) and John Smoltz (199). He also joined Bob Gibson, Curt Schilling and Sandy Koufax as one of just four hurlers to strike out 20+ Yankees in a postseason series.