MLB Commissioner Bud Selig speaks during a news conference in New York

MLB’s takeover of the Dodgers could imperil baseball’s antitrust exemption

14 Comments

Yesterday I noted that Major League Baseball may be wary of a fight with Frank McCourt because it has a lot of rules with respect to club ownership that exist simply because owners agree to them and that, if challenged, there are likely several that wouldn’t hold up in court.  One of them — Major League Baseball’s putative right to approve who buys a team and enters the ownership club — could be seriously jeopardized in all of this.

You know how it works: a team goes on the market and the bidders line up. Before the deal is done, MLB “approves” the winning ownership group. And that group is not necessarily the highest bidder. There is much talk, however, about who Bud Selig likes and who he doesn’t, who is friends with Jerry Reinsdorf and who isn’t and that sort of thing. This is the step where Mark Cuban’s ambitions get thwarted.  It’s also a step that probably violates antitrust laws and, according to the only court that has ever considered the matter, does not fall into baseball’s more-limited-than-you-think antitrust exemption.

Flash back 18 years to the case of Piazza v. Major League Baseball (831 F. Supp. 420 (E.D. Pa. 1993) for those of you who care), in which some gentlemen from Pennsylvania tried to buy the San Francisco Giants and move them to Florida. Then-Giants’ owner Bob Lurie was going to sell, but MLB stepped in and indicated that it would not approve the sale. The buyers sued, arguing (among other things) that baseball illegally restrained free trade in the market in which baseball teams are bought and sold. Baseball argued that it was allowed to do this pursuant to the antitrust exemption.

The trial court agreed with the would-be buyers during the preliminary stages of that case, ruling that the antitrust exemption didn’t apply to the purchase of teams.

Granted, this wasn’t a final decision on the merits. Rather, the court basically ruled that if the plaintiffs could prove that MLB wrongfully thwarted the sale — say, that baseball had no legitimate business basis for excluding a potential ownership group –they could win. Of course it never got that far. Having seen that its antitrust exemption was in peril, baseball settled with the plaintiffs, paying them $6 million for their trouble, and the case went away and does not now serve as any sort of binding precedent.

Since that time, baseball has continued to approve or deny “ownership applications” as though they were country club memberships as opposed to the restraint of the sale of goods in a free market. It has been able to get away with this because, to my knowledge, no current owner selling a team has challenged baseball’s ability to approve buyers — remember, they themselves got into the club through this very process — and, with no dispute, there can be no court case. Both the Cubs and the Rangers sales had the potential for this inasmuch the team sales were thrown into court, but neither instance created a situation in which the selling owner wanted to sell to A, but baseball wanted to sell to B.

So, back to the present: Frank McCourt is making serious noises about suing Major League Baseball. No matter how this all shakes out, it’s hard to see it ending in any way other than a sale of the Dodgers.  As is suggested by the legal experts cited in today’s article from Bill Shaikin in the Los Angeles Times, the only way that McCourt won’t sue over the specifics of the sale is if baseball agrees to take the highest bidder.  If that highest bidder isn’t someone Bud Selig wants to let in his club — say, I dunno, some skeezy businessman from some unpronounceable former Soviet Republic who is on record saying that he wants to give out the biggest free agent contracts in recorded history — Selig could have a serious dilemma on his hands:  allow a potential maverick (Maverick?)  into the club or risk re-litigating the Piazza case.

I want to see Frank McCourt gone and I want to see a responsible owner in Los Angeles with a minimum of fuss.  But boy howdy, it would be fun to see Major League Baseball’s anti-competitive practices blown away too, so I can’t say that I, as a popcorn-eating gawker to all of this, will be disappointed either way.

Joe Panik says he’s “100 percent” recovered from back injury

San Francisco Giants second baseman Joe Panik follows through on a single off Colorado Rockies relief pitcher Scott Oberg in the eighth inning of Game 1 of a baseball doubleheader Saturday, May 23, 2015, in Denver. The Giants won 10-8. (AP Photo/David Zalubowski)
AP Photo/David Zalubowski
2 Comments

Giants second baseman Joe Panik missed nearly all of August and September last season due to a nagging back injury, but he told Alex Pavlovic of CSNBayArea.com on Friday that he’s feeling “100 percent.”

Panik, who earned his first All-Star selection last season, originally landed on the disabled list in early August due to what was described as lower back inflammation. He made his return in September, but appeared in just three games before being shut down. The good news is that he was cleared by doctors in mid-December and considers himself “back to normal.”

“It was right around the time of all the signings,” he said, smiling. “I was able to fly under the radar. I got tested and everything had healed up. I got cleared and was able to have my full offseason workouts. I’m good to go. I’m happy to be feeling good and going back out on the field to show that I’m healthy. My swing feels strong.”

Panik altered his offseason workout routine and plans to spend less time in his spikes in the early part of spring training. The hope is that these changes will prevent future issues.

After a strong showing as a rookie in 2014, the 25-year-old Panik proved to be one of the best second baseman in the majors last season by batting .312/.378/.455 with eight home runs and 37 RBI over 100 games while playing solid defense.

Baseball America names Corey Seager as baseball’s top prospect

Los Angeles Dodgers' Corey Seager follows through a single that scored Austin Barnes, in front of Colorado Rockies' Wilin Rosario during the sixth inning of a baseball game, Wednesday, Sept. 16, 2015, in Los Angeles. (AP Photo/Danny Moloshok)
AP Photo/Danny Moloshok
6 Comments

Baseball America unveiled their top 100 prospect list Friday night during a special on MLB Network. It should come as no surprise that Dodgers infielder Corey Seager came in at No. 1.

This makes Seager the consensus top prospect in the game. He was also ranked first by MLB.com, Baseball Prospectus, and ESPN’s Keith Law. Twins outfielder Byron Buxton was ranked second on all four lists.

Baseball America has the most aggressive ranking of Cuban infielder Yoan Moncada from the Red Sox, who checked in at No. 3. He was followed by pitching prospects Lucas Giolito from the Nationals and Julio Urias from the Dodgers to round out the top five.

You can see Baseball America’s full top 100 list here.

Jenrry Mejia: “It is not like they say. I am sure that I did not use anything.”

New York Mets' Jenrry Mejia reacts after getting the last out against the Milwaukee Brewers during the ninth inning of a baseball game Friday, July 25, 2014, in Milwaukee. The Mets won 3-2. (AP Photo/Jeffrey Phelps)
AP Photo/Jeffrey Phelps
11 Comments

Mets reliever Jenrry Mejia was permanently suspended on Friday after testing positive for a third time for a performance-enhancing drug. The right-hander is maintaining his innocence, as ESPN’s Adam Rubin notes in quoting Dominican sports journalist Hector Gomez. Mejia said, “It is not like they say. I am sure that I did not use anything.”

Mejia has the opportunity to petition commissioner Rob Manfred in one year for reinstatement to Major League Baseball. However, he must sit out at least two years before becoming eligible to pitch in the majors again, which would mean Mejia would be 28 years old.

Over parts of five seasons, Mejia has a career 3.68 ERA with 162 strikeouts and 76 walks over 183 1/3 innings. He was once a top prospect in the Mets’ minor league system and a top-100 overall prospect heading into the 2010 and ’11 seasons.

Bryce Harper on potential $400 million contract: “Don’t sell me short.”

Bryce Harper
AP Photo/Nick Wass
26 Comments

Nationals outfielder Bryce Harper is at least three years away from free agency, but people are already contemplating just how large a contract the phenom will be able to negotiate, especially after taking home the National League Most Valuable Player Award for his performance this past season.

When the likes of David Price and Zack Greinke are signing for over $200 million at the age of 30 or older, it stands to reason that Harper could draw more as a 26-year-old if he can maintain MVP-esque levels of production over the next several seasons. $400 million might not be enough for Harper, though, as MLB.com’s Jamal Collier reports. He said, “Don’t sell me short,” which is a fantastic response.

During the 2015 season, Harper led the majors with a .460 on-base percentage and a .649 slugging percentage while leading the National League with 42 home runs and 118 runs scored. He also knocked in 99 runs for good measure. Harper and Ted Williams are the only hitters in baseball history to put up an adjusted OPS of 195 or better (100 is average) at the age of 22 or younger.