Tom Schieffer on the Dodgers: “The complexity of the situation is daunting”


Tom Schieffer, the Dodgers’ trustee, sat for an interview with the Associated Press yesterday, and he described a situation that makes it seem impossible that Major League Baseball will truly have any sort of resolution of its investigation of Dodgers finances before their payroll comes due at the end of the month.

Indeed, he has found that there are 26 separate legal entities that make up the Dodgers empire these days — you may recall this lovely flow-chart, courtesy of Dodger Divorce — and that he’s trying to hack through them like he’s going through the jungle with a machete:

“The complexity of the situation is daunting. The way things are structured, sometimes they’re for tax purposes and sometimes they’re for liability purposes, but it does require you to try to follow the dollar through the process, and that takes a little bit of time. And some of the entities are shells that were set up maybe to do something else and that don’t really bear a great deal on it. What you’re trying to do is figure out what is pertinent … and it just takes a little bit of time.”

Pointless hyper-complexity: always the hallmark of a well-run organization.  But what’s scary is that, according to Schieffer, this structure isn’t necessarily uncommon in Major League Baseball:

He points out that the Dodgers’ complex structure – he says going through the documents “is drinking out of a fire hose” – is not dissimilar to how other clubs are set up. What is unique is the McCourts’ legal tangle: Jaime successfully persuaded a court to invalidate a postnuptial agreement giving Frank McCourt sole ownership of the franchise.

I don’t claim to be an expert on business, but this seems insane to me.  While they’re high profile operations, baseball teams aren’t necessarily complex businesses by their very nature. They put on performances, travel, have a payroll that, while big in dollars, isn’t gigantic in terms of head count, and have to answer back to a regulatory authority.  There are tons of businesses that fit that general profile that don’t require 26 levels of shell corporations and subsidiaries to make things work.

There is just an astounding lack of transparency in the way baseball teams are run. Given how much public interest — and in most cases, public subsidies — are involved in their operation, this shouldn’t be the case.

The Indians will put Danny Salazar on the World Series roster

CLEVELAND, OH - SEPTEMBER 04: Danny Salazar #31 of the Cleveland Indians pitches against the Miami Marlins in the first inning of their interleague game at Progressive Field on September 4, 2016 in Cleveland, Ohio. The Indians defeated the Marlins 6-5.  (Photo by David Maxwell/Getty Images)
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The story of the Indians postseason cannot be told without talking about injuries to starting pitchers Carlos Carrasco and Danny Salazar. They have forced Terry Francona to lean even harder on his bullpen than he otherwise may have and have cause the Indians to press rookie Ryan Merritt into service.

But Cleveland will be getting at least one of their starters back: Indians pitching coach Mickey Callaway that Danny Salazar will be part of the World Series roster.

Salazar has not pitched since early September due to a strained right flexor muscle, but according to Callaway, Salazar is ready to throw 65-70 pitches in a game. That could mean a start, probably in Game 4 after Corey Kluber, Trevor Bauer and Josh Tomlin. Merritt was a possible Game 4 starter, but he could either pair up with Salazar in a tandem start or serve in long relief.

Will Kyle Schwarber DH for the Cubs in the World Series?

CHICAGO, IL - AUGUST 16:  Injured player Kyle Schwarber #12 of the Chicago Cubs is seen in the dugout before a game against the Milwaukee Brewers at Wrigley Field on August 16, 2016 in Chicago, Illinois.  (Photo by Jonathan Daniel/Getty Images)
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Cubs’ left fielder Kyle Schwarber missed virtually the entire 2016 season due to torn knee ligaments, but he has been working his way back to health more quickly than initially expected. Indeed, he has been playing for the Cubs in the Arizona Fall League, serving as a DH. Many have speculated that the Cubs will activate him for the World Series.

Today, at his World Series media session, Cubs manager Joe Maddon said that reports from Arizona are good on Schwarber and that the he will fly to Cleveland to join the team after tonight’s game in Arizona. Maddon says the team will make a decision on activating him once he arrives. The Cubs have until tomorrow morning to set their World Series roster.

Our guess is that Schwarber will get the call and will serve as the DH for the Cubs in Games 1, 2 and, if necessary, 6 and 7 in Cleveland. If so, a lost season could very quickly turn into a storybook season for the Cubs’ young slugger.