Must-click link: how team owners are allowed to lie about their financial losses

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This is a basketball item in its genesis, dealing with the New Jersey Nets’ financial documents and inspired by the NBA lockout, but it is relevant for baseball and all other sports as well.

Over at Deadspin, Tommy Craggs, using some older Nets docs, explains how team owners are allowed to list player salaries on their balance sheets twice, thereby dramatically inflating their on-paper financial losses. The little trick — thanks to a specious tax loophole argued for and obtained by Bill Veeck back in the day — allows them to cry poor when it’s time to do battle with the players’ unions at collective bargaining agreement time.

Well, the players unions know about this little tax loophole too, so it’s more about crying poor to the gullible media and gullible fans, but you get the idea.

The specifics here are quite instructive, but even if you don’t care about Craggs’ use of the specifics Nets’ documents, you should at least read the piece to understand that this sort of manipulation of the facts on the ground is a trick that sports owners have been using for years, be it in labor talks, threats to move or contract teams or in their efforts to obtain new stadiums and/or other incentives from local governments and tax payers.

You shouldn’t take anyone’s word about anything when money is involved, but boy howdy, be extra, extra dubious of anything the owner of a sports team tells you when he has his hand out.

Rockies acquire Zac Rosscup from Cubs

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The Rockies announced a minor swap of relief pitchers on Monday evening. The Cubs sent lefty Zac Rosscup to the Rockies in exchange for right-hander Matt Carasiti.

Rosscup, 29, was designated for assignment by the Cubs last Thursday. He spent only two-thirds of an inning in the majors this year and has a 5.32 career ERA across 47 1/3 innings. Rosscup has spent most of the season with Triple-A Iowa, posting a 2.60 ERA in 27 2/3 innings.

Carasiti, 25, spent 15 2/3 innings in the majors last year, putting up an ugly 9.19 ERA. With Triple-A Albuquerque this season, he compiled a 2.37 ERA and a 43/13 K/BB ratio in 30 1/3 innings.

U.S. Court of Appeals affirms ruling that the minor leagues are exempt from federal antitrust law

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The Associated Press reported that on Monday, the U.S. Court of Appeals for the 9th Circuit affirmed a district court ruling which holds that the minor leagues are exempt from federal antitrust law, just like the major leagues.

In 2015, four minor leaguers sued Major League Baseball, alleging that MLB violated antitrust laws with its hiring and employment policies. They accused MLB of “restrain[ing] horizontal competition between and among” franchises and “artificially and illegally depressing” the salaries of minor league players.

The U.S. Court of Appeals said the players failed to state an antitrust claim, as the Curt Flood Act of 1998 exempted Minor League Baseball explicitly from antitrust laws.

This case is separate from the Aaron Senne case in which Major League Baseball is accused of violating the Fair Labor Standards Act. That case was recertified as a class action lawsuit in March. In December, Major League Baseball established a political action committee (PAC), which came months after two members of Congress sought to change language in the FLSA so that minor league players could continue to be paid substandard wages.