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

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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.

Jason Heyward hopes to return to Cubs’ lineup on Friday

Chicago Cubs' Jason Heyward hits a double to drive in Dexter Fowler off Cincinnati Reds relief pitcher J.J. Hoover during the ninth inning of a baseball game, Friday, April 22, 2016, in Cincinnati. The Cubs won 8-1. (AP Photo/John Minchillo)
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Cubs outfielder Jason Heyward hasn’t played since Sunday due to a sore right wrist, but he’s hoping to be included in his team’s lineup on Friday, MLB.com’s Carrie Muskat reports. Matt Szucur, Ben Zobrist, and Kris Bryant have handled right field while Heyward has been out.

Heyward, 26, has gotten off to a disappointing start, as he’s batting .211/.317/.256 with only four doubles, no home runs, and 13 RBI in 104 plate appearances. He signed an eight-year, $184 million contract with the Cubs back in December.

Heyward said he hurt his wrist putting emphasis on it during hitting drills. He said, “I was doing some work off the tee and doing a drill with a donut on the bat, swinging, trying to stay through the middle, and I put more emphasis on [his wrist] and strained it from that.”

Cardinals plan to get creative to keep Aledmys Diaz in the lineup

St. Louis Cardinals' Jedd Gyorko high-fives with Matt Carpenter as they and Aledmys Diaz, center, leave the field following the Cardinals' 11-2 victory over the San Diego Padres in a baseball game Saturday, April 23, 2016, in San Diego. (AP Photo/Lenny Ignelzi)
AP Photo/Lenny Ignelzi
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Cardinals shortstop Jhonny Peralta is expected to return from the disabled list in early June, which means current shortstop Aledmys Diaz would return to the bench. There’s only one problem: Diaz has been one of the best hitters in baseball. The 25-year-old owns a sparkling .381/.422/.679 triple-slash line with 14 extra-base hits (including five homers) in 90 plate appearances.

The Cardinals plan to get creative to keep Diaz’s bat in the lineup. Per Jon Morosi of FOX Sports, the club is considering using Peralta at first and third base. Peralta, 33, last played third base in 2010 with the Indians and Tigers. He has logged only three games and nine total defensive innings at first base in his major league career.

Diaz isn’t about to displace Peralta. Last season, Peralta was one of the best-hitting shortstops, finishing with a .275/.334/.411 triple-slash line with 17 home runs and 41 RBI in 640 plate appearances. He was even more productive in 2014, his first year with the Cardinals.

Chris Bassitt will undergo Tommy John surgery on Friday

Oakland Athletics pitcher Chris Bassitt sits in the dugout after being relieved against the Detroit Tigers in the fourth inning of a baseball game in Detroit, Thursday, April 28, 2016. (AP Photo/Paul Sancya)
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Athletics pitcher Chris Bassitt will undergo season-ending Tommy John surgery on Friday, MLB.com’s Jane Lee reports. He was diagnosed with a partially torn ulnar collateral ligament over the weekend, so this news doesn’t come as much of a surprise.

Bassitt, 27, is certainly out for the remainder of the 2016 season and will likely miss a sizable portion of the 2017 season as well. The right-hander made five starts for the A’s to begin the season, but put up an ugly 6.11 ERA with a 23/14 K/BB ratio in 28 innings.

Jesse Hahn took Bassitt’s spot in the Athletics’ starting rotation. Hahn is expected to start next on Saturday versus the Orioles.

Report: Twins place Tommy Milone and Casey Fien on waivers

Minnesota Twins starting pitcher Tommy Milone throws during the first inning of a baseball game against the Milwaukee Brewers Wednesday, April 20, 2016, in Milwaukee. (AP Photo/Morry Gash)
AP Photo/Morry Gash
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Mike Berardino of the St. Paul Pioneer press is reporting that the Twins have placed pitchers Tommy Milone and Casey Fien on waivers. Berardino adds that Fien would be able to reject a demotion to the minors if he passes through waivers, but Milone could not. Milone and Fien are only a part of what’s been ailing the 8-20 Twins.

Milone, 29, was solid out of the rotation for the Twins last season, but the same can’t be said of his start to the 2016 season. The lefty has a 5.79 ERA with a 19/7 K/BB ratio over four starts and one relief appearance. He was taken out of the Twins’ rotation following his final start in April.

Fien, 32, was also dependable for the Twins in previous years, but has had a rocky 2016 thus far. The right-hander has yielded 12 runs on 21 hits and three walks with 12 strikeouts in 13 2/3 innings.

Milone will be eligible for his third and final year of arbitration after the season after earning $4.5 million this season. Fien has two more years of arbitration eligibility left — his third and fourth — and is earning $2.275 million this year.