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


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.

The Cubs clinch World Series berth with NLCS Game 6 win

CHICAGO, IL - OCTOBER 22:  The Chicago Cubs celebrate defeating the Los Angeles Dodgers 5-0 in game six of the National League Championship Series to advance to the World Series against the Cleveland Indians at Wrigley Field on October 22, 2016 in Chicago, Illinois.  (Photo by Dylan Buell/Getty Images)
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After 71 years, the Cubs are headed back to the Fall Classic.

The dominance with which Clayton Kershaw attacked the Cubs in Game 2 of the NLCS was nonexistent in Game 6 as the Dodgers’ ace loaded the bases to start the first inning and scattered five extra bases and five runs over five frames. By the time Dave Roberts pulled his starter in the sixth inning, Kershaw was sitting on a Game Score of 33, the lowest he’s mustered since the start of the 2015 season. Only one of his strikes came via curveball, and whether he was having difficulty locating his off-speed stuff or felt more confident with the fastball-slider combo, it was the fewest curves he’d seen land for strikes all year (per David Adler).

Where the Dodgers were able to give Kershaw the edge in Game 2, they found themselves powerless against opposing hurler Kyle Hendricks. Hendricks turned out 7 1/3 scoreless frames with two hits and six strikeouts, preserving the Cubs’ second shutout of the postseason and the first since they bested the Giants in Game 1 of the NLDS. After his 1-0 loss to the Dodgers early in the NLCS, seeing the MLB ERA leader turn out a gem was a relief for the Cubs, especially one as spectacular as an 88-pitch two-hitter.

With Hendricks effectively stymieing the Dodgers’ best attempts to get on base, the Cubs played to their strengths at the plate. Kris Bryant and Ben Zobrist cleared the bases in the first inning for a two-run lead, followed by a Dexter Fowler RBI single in the second. Willson Contreras came through in the fourth inning for the Cubs, lifting an 87 m.p.h. slider to left field for his first home run of October, while Anthony Rizzo hit his second homer of the postseason on a 1-1 fastball in the fifth.

Neither bullpen allowed a single run from the sixth inning onward. Dodgers’ right-hander Kenley Jansen took the ball from Kershaw in the sixth, scattering four strikeouts over three innings and denying the Cubs so much as a single baserunner through the end of the game. Aroldis Chapman, meanwhile, issued just one walk in 1 1/3 scoreless frames, inducing a Yasiel Puig double play to clinch the Cubs’ 17th franchise pennant.

With the win, the Cubs will face off against the Indians in Game 1 of the World Series on Tuesday at 8 PM EDT. And, in case you needed a reminder:

Video: Willson Contreras blasts first postseason home run off of Kershaw

CHICAGO, IL - OCTOBER 22:  Willson Contreras #40 of the Chicago Cubs celebrates after hitting a solo home run in the fourth inning against the Los Angeles Dodgers during game six of the National League Championship Series at Wrigley Field on October 22, 2016 in Chicago, Illinois.  (Photo by Jonathan Daniel/Getty Images)
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So much for Clayton Kershaw posing a threat tonight. The Cubs got their knocks in early and often against the Dodgers’ ace during Game 6 of the NLCS, racking up three runs in the first three innings before rookie catcher Willson Contreras unleashed his first postseason home run in the bottom of the fourth inning.

According to MLB.com’s Phil Rogers, Contreras became the 10th Cub to homer in the 2016 playoffs, following big hits by Addison Russell, Anthony Rizzo, Dexter Fowler, Miguel Montero, David Ross, Jake Arrieta, Kris Bryant, Travis Wood, and Javier Baez. Of the ten home run hitters, Contreras joins catchers David Ross and Miguel Montero as yet another backstop capable of driving the long ball (and, less importantly, as another player capable of a sweet, sweet bat flip).

Rizzo, whose last homer was a deep drive to right field off of Los Angeles right-hander Pedro Baez in Game 4 of the NLCS, piled on Kershaw’s five-run outing with another home run in the bottom of the fifth inning. Kershaw called it a night after five frames, and the Cubs currently lead the Dodgers 5-0 in the sixth inning.