Schieffer

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

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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.

Report: Phillies want a top-five prospect for Jeremy Hellickson

PHILADELPHIA, PA - JULY 20: Starting pitcher Jeremy Hellickson #58 of the Philadelphia Phillies throws a pitch in the second inning during a game against the Miami Marlins at Citizens Bank Park on July 20, 2016 in Philadelphia, Pennsylvania. (Photo by Hunter Martin/Getty Images)
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Starter Jeremy Hellickson has become the Phillies’ most enticing trade chip as he’s put together a solid month of July. After shutting out the Marlins on one hit and one walk over six innings on Monday, the right-hander lowered his July ERA to 1.97 and his overall ERA to 3.65. As a result, the Phillies are telling teams they want a top-five prospect to part with Hellickson, per ESPN’s Jayson Stark.

Obviously, a top-five prospect means something different if you’re the Marlins as opposed to the Rangers. And the Phillies’ price point for Hellickson isn’t likely to stay that high, but GM Matt Klentak is setting a lofty starting point so that the return might end up being higher than market value.

ESPN’s Buster Olney speculates that the Phillies could end up holding onto Hellickson and giving him a qualifying offer after the season. He notes that the Phillies have only $25 million tied up for the 2017 season, so they could afford to pay Hellickson in excess of $16 million if he were to accept.

Video: Matt Cain launches a three-run home run

SAN FRANCISCO, CA - JULY 26: Matt Cain #18 of the San Francisco Giants hits a three run home run against the Cincinnati Reds during the second inning at AT&T Park on July 26, 2016 in San Francisco, California.  (Photo by Jason O. Watson/Getty Images)
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Madison Bumgarner isn’t the only Giants pitcher who can rake. Matt Cain crushed a three-run home run during Tuesday’s game against the Giants.

Cain stepped to the plate with runners on the corner and one out against Reds starter Cody Reed in the bottom of the second inning. Reed threw a 1-1 fastball down the middle and Cain hit it about 20 rows back in the left field seats.

It’s Cain’s first homer of the season, his first since 2012, and the seventh of his 12-year career. He still has some work to catch up to Bumgarner, who has two homers this year and 13 in his career.

On the pitching side of things, Cain got the win against the Reds on Tuesday night, giving up four runs on six hits and a walk with four strikeouts in 5 1/3 innings. He currently holds an ugly 5.95 ERA.