Combination of file photos of MLB commissioner Bud Selig and Los Angeles Dodgers owner Frank McCourt

It’s getting ugly between Frank McCourt and Major League Baseball

15 Comments

As mentioned this morning, Frank McCourt flew to New York today to meet with MLB officials — Bud Selig not included — to plead his case for control of the team. A few minutes ago he held a press conference about it, in which he said that his “hard-earned money and my family’s blood, sweat and tears” had gone into the Dodgers and that baseball’s takeover was “just not right.”

McCourt was defiant, saying “Nobody handed the Dodgers to me and nobody’s going to take it away.”  He added, in what can only be viewed as a threat, that he was going to “protect [his] rights, obviously” and was “committed to [his] position.”  He said “I’m not going anywhere.” He also went into the proposed television rights deal with FOX, saying that it will provide “complete stability for the Los Angeles Dodgers for the next two decades,” and decrying what he called Bud Selig’s “veto” of the deal.

Approximately 15 minutes ago, Major League Baseball issued the following statement in response:

“It is unfortunate that Mr. McCourt felt it necessary to publicize the content of a private meeting. It is even more unfortunate that Mr. McCourt’s public recitation was not accurate. Most fundamental, Commissioner Selig did not ‘veto’ a proposed transaction. Rather, Mr. McCourt was clearly told that the Commissioner would make no decision on any transaction until after his investigation into the Club and its finances is complete so that he can properly evaluate all of the facts and circumstances.

“Equally important, there has been no seizure of the Los Angeles Dodgers. Mr. Scheiffer has been appointed as a monitor, and a multi-page written directive from the Commissioner describing his role has been provided to Mr. McCourt. In our meeting, no one from the Dodgers asked a single, specific question about the terms of the document setting forth the monitor’s role. “Finally, Mr. McCourt is well aware of the basis of Baseball’s investigation and has been provided an eight-page document describing the issues of concern to Major League Baseball.”

This is not going to end well. McCourt clearly does not see Tom Schieffer’s role with the club as legitimate. Meanwhile, the more McCourt talks about his deal with FOX, the less likely it is that anyone at MLB is going to give it the time of day, if they ever were going to in the first place.

If this ends without McCourt suing baseball I’d be shocked.

MLB implements another player-unfriendly rule, this time targeting draftees

CHICAGO, IL - OCTOBER 28:  MLB Commissioner Rob Manfred speaks to the media before Game Three of the 2016 World Series between the Chicago Cubs and the Cleveland Indians at Wrigley Field on October 28, 2016 in Chicago, Illinois.  (Photo by Elsa/Getty Images)
Elsa/Getty Images
2 Comments

Jon Morosi of MLB Network and FOX Sports reports that the MLB draft has a new program in which the top-50 pitching prospects are asked to undergo a voluntary pre-draft MRI on their throwing arm. At first glance, it seems reasonable because, hey, pitchers are injury-prone and players sometimes hide injuries. It would feel bad if my favorite team drafted a lemon!

The reality is that this is just another player-unfriendly rule that shifts financial risk away from the owners and onto the players. The players, in this case, are often not wealthy and are about to begin life in the minor leagues where they earn less than $8,000 per year. Signing bonuses help alleviate some of the immediate financial discomfort of minor league life.

The pre-draft MRI is “voluntary” with quotes around it. Choosing not to undergo the MRI will only give prospective teams more reason to be skeptical of one’s durability. It’s a lot like those voluntary workouts in football that aren’t so voluntary due to superior and peer pressure. You don’t show up, you’re lazy, entitled, a bad teammate, etc. In this case, a pitching prospect refuses to undergo the MRI, it’s because he’s hiding an injury.

Ian Anderson was the first pitcher taken off the board in the 2016 draft, going to the Braves at No. 3. He got a $4 million signing bonus. Let’s say this new MRI program had already been instituted and Anderson refused, or something came up that caused the Braves to change their minds. Anderson’s draft stock falls, let’s say to 21 where the Blue Jays took T.J. Zeuch with a $2.175 million signing bonus. Falling 18 spots in this case costs Anderson about $2 million, perhaps more because he loses a lot of negotiating leverage. Maybe he falls further, even to the second round.

In a column for FanGraphs nearly two years ago, Nathaniel Grow showed that, as a percentage of total league revenues, player salaries have been declining since the early 2000’s. In 2002, player salaries made up 56 percent of league revenues. In 2014, it was only 38 percent.

In isolation, the MRI program isn’t a big deal. The injured player loses stock, but another player moves up to take his place and earns a bit more money. As part of the bigger picture, however, this is part of an ongoing trend in which owners abdicate financial risk and push it all onto the players. The new collective bargaining agreement, for example, capped international signings at $5-6 million per team per year. That removes any incentive for overseas stars like Shohei Otani from coming over to play Major League Baseball. If he wanted to anyway, he would make much less money than he otherwise would on an open market. The amateur draft itself is almost entirely risk-avoidant for owners and it’s terrible for the players because they, too, would earn much more on an open market. And let’s not forget how owners have fought tooth-and-nail to keep minor league salaries suppressed.

Diamondbacks owner Ken Kendrick once paid $2.8 million for the Honus Wagner T-206 baseball card. Let’s not act like these owners can’t afford to shoulder the risk on young pitchers.

EDIT (4:40 PM EST): As I’ve seen others mention it, it’s worth bringing up the Astros/Brady Aiken issue. The Astros took him first in the 2014 draft, but they took issue with his elbow health. The two sides had agreed to a $6.5 million signing bonus, but the Astros wanted to reduce it to $5 million as a result. Aiken didn’t end up signing with the Astros. He underwent Tommy John surgery and was later selected by the Indians 17th overall in the first round of the 2015 draft. He got a $2,513,280 signing bonus.

Your 2016 Winter Meetings Wrapup

national-harbor
Gaylord National Resort
5 Comments

OXON HILL, MD — The 2016 Winter Meetings are over.  As usual, there was still no shortage of excitement this year. More trades than we’ve seen in the past even if there are still a lot of free agents on the market. Whatever the case, it should make the rest of December a bit less sleepy than it normally is.

Let’s look back at what went down here at National Harbor this week:

Well, that certainly was a lot! I hope our coverage was useful for you as baseball buzzed through its most frantic week of the offseason. And I hope you continue coming back here to keep abreast of everything happening in Major League Baseball.

Now, get me to an airport and back home.