A bit more on the distinction between the Wilpons and the McCourts

6 Comments

In that last post about the difference between the McCourt situation and the Wilpon situation, I said that there was a difference between Wilpon’s ownership interest in SNY and the Dodgers’ ownership of broadcast rights.  That distinction led to a couple of similar reader comments. Like this one:

The situations are identical, just different structures. The major asset of SNY is the rights to Mets games, right? McCourt has Dodgers rights He could create a network and sell the broadcast rights to for $bazillion
He could then sell the network which is his personal asset to pay off his divorce. And that is OK where selling the rights to Fox is not?  SNY is just a shell for the rights that is packaged as an operating company.  No difference at all.

It’s actually even more stark than my reader says.  The Mets — as a team — likely get pennies on the dollar of what their broadcast rights would be worth on the open market because Wilpon is on both sides of the deal with SNY.   By underpaying for Mets rights, SNY is worth more and the money it keeps — as opposed to the money the Mets would have received — is not subject to revenue sharing with the other 29 clubs.  This has been going on for years, by the way. Ted Turner used to do with the Braves and TBS, albeit for some different reasons.

All of that said, I don’t disagree with my reader’s analysis. The point I was trying to make in the last post — and in hindsight utterly failed to make — is not that there is a fundamental difference between broadcast rights and regional sports network ownership interest. It’s that Bud Selig does and will continue to treat such things differently — and thus he will likely treat McCourt and Wilpon differently — even if doing so is disingenuous.

Why?  Because if he acknowledges that straight broadcast rights and the revenues of team-owned cable networks are essentially the same, the economic structure of baseball unravels.  Because it’s not really a structure. It’s an uneasy peace between big market, high revenue teams and the small ones.

That peace is predicated, in part, on the big clubs and the little clubs being allowed their respective excesses.  The big clubs can house their money in enterprises that are not subject to revenue sharing. Think the Red Sox investing in NASCAR teams and, more traditionally, big teams operating RSNs.  For their part, the small clubs are allowed to pocket revenue sharing money rather than invest it in their teams. At least within reason, as Jeff Loria and the Marlins found out last year.  Each type of team chafes at what the other is allowed to get away with, but they mostly keep their powder dry because everyone is getting rich.

Practically speaking, if the Wilpons are forbidden from using SNY money to settle their Madoff problems on a theory that doing so would harm the Mets, the fiction that this money is non-baseball-related is exposed and the Pirates and Royals of the world will demand that they be given a share of the RSN money the big teams are making.

Likewise, if Frank McCourt is allowed to use straight broadcast rights money to pay off his wife, the Pirates and other small teams — who are smaller than the Dodgers but, like the Dodgers, don’t have an RSN —  will feel free to pocket their own rights money and put even less into their teams than they already do, which will be a bridge too far for both the big clubs and the fan bases of the small teams (pocket the gate receipts and the concessions, Mr. Loria, but too many people are watching when you pocket the TV money).

If all of this sounds borderline corrupt to you — if it sounds like, hey, at some point someone should have filed a lawsuit over it — don’t worry! You’re not crazy!  Someone probably should have long ago.  But they didn’t.  Why? Because there are only like three owners in all of baseball who weren’t admitted to the very cozy ownership club before Selig took over. The price of their entry to the club: fealty to Selig and the highly anti-competitive arrangement described above.  Indeed, every year there are a half dozen things that happen that, if baseball teams were run as independent businesses who felt free to vindicate their rights through legal action, would lead to lawsuits.

But the lawsuits never come because no one is willing.  Big city teams are given monopolies over huge media markets so that they can build media empires. Small market owners are given the keys to small teams that, while not as lucrative on a cash flow basis, are almost certain to appreciate nicely and — with a few high profile exceptions like media revenues — they’re allowed to treat as their own private piggy bank.  It’s not ideal and it’s not fair, but it ain’t a bad bargain.

At least if you own a baseball team.

Video: Mets execute a bizarre double play against the Nationals

Getty Images
Leave a comment

Double plays come in an assortment of combinations, from the standard 6-4-3 combo to some more unusual patterns. During the Mets’ 5-3 win over the Nationals on Saturday, however, what made this double play strange was less the product of an unorthodox route and almost entirely due to an unexpected collision on the basepaths instead.

In the bottom of the fourth inning, with the Mets trailing 1-0, Zack Wheeler caught Jose Lobaton swinging for strike three. Mets’ backstop Travis d'Arnaud fired the ball to second base, where the ball slipped out of Asdrubal Cabrera‘s glove as Jayson Werth slid into the bag for a stolen base. Second baseman Neil Walker fielded the ball in shallow center field, then tossed it to third base, and Jose Reyes tagged Werth easily for the second out of the play.

The Mets complimented their defensive efforts with a strong showing at the plate, reclaiming the lead with three home runs from Michael Conforto and Jose Reyes to clinch their tenth win of the year.

Report: Adam Eaton to miss rest of the season with a torn ACL

Getty Images
3 Comments

It’s been a miserable weekend for Nationals’ outfielder Adam Eaton, who stumbled over first base and injured his leg while running out an infield single in Friday’s 7-5 loss to the Mets. While the team officially placed the outfielder on the 10-day disabled list with a left knee strain on Saturday, FOX Sports’ Ken Rosenthal reports that Eaton has been diagnosed with a torn ACL in his left knee and is expected to miss the remainder of the 2017 season. The team has yet to confirm the diagnosis or announce a definite timetable for the 28-year-old’s return, perhaps due to extended evaluations by Eaton’s orthopedic doctor:

The Nationals appear to have several outfield options with Eaton on the disabled list, though they have not pinned down a long-term solution. Center fielder Michael Taylor replaced Eaton on the field during the tail end of Friday’s game, and returned on Saturday to man center and bat second in the lineup. The club also promoted top outfield prospect Rafael Bautista, who slashed .291/.325/.354 with five doubles and a .680 OPS through 19 games in Triple-A Syracuse this season. He’ll assume Eaton’s roster spot and looks to be available for a backup role in the outfield going forward.