UPDATE: It seems this was not really news, despite Bloomberg’s reporting it as such. Bill Shaikin of the Los Angeles Times reported this back in May. We missed it then. Apologies to the Times.
5:40 PM: If this report from John Helyar of Bloomberg is true, whoa, MLB is going to have A LOT of explaining to do to, well, every team that is not the Los Angeles Dodgers:
The Los Angeles Dodgers have shot out of bankruptcy and into the ranks of baseball’s biggest spenders, fueled partly by a secret agreement between former owner Frank McCourt and Major League Baseball that may limit the revenue the team is obliged to share with less prosperous clubs.
A settlement ending their 2011 battle in U.S. Bankruptcy Court gives the Dodgers’ new owners a chance to cap income subject to revenue-sharing from a proposed regional sports network at about $84 million a year, according to five people familiar with the confidential “special terms.”
The upshot: the Dodgers — based on assumptions about what their new TV deal will bring them — will be able to hold on to some $141 million a year that they would otherwise have to share with other clubs in the league. That’s because their new deal will bring in far, far more than $84 million a year. Indeed, its estimated that it’ll bring in $175 million to $225 million a year over the 20- year contract.
This would help in part to explain the massive sales price of the team, as the biggest financial hurdle a large market/revenue team faces is its revenue sharing obligations.
Major League Baseball Executive Vice President Rob Manfred pushes back against this, saying that the revenue sharing figures will be based on the actual TV revenue the Dodgers receive. Which … seems like a direct contradiction of the whole story. So, I’m not sure what’s going on here. Bloomberg is obviously reporting, based on several sources, that there is a deal to cap revenue-sharing eligible TV money. Manfred’s words suggests that’s not the case.
Any help here, anyone?
The Athletics and Royals swapped outfielders on Saturday. The Athletics sent Billy Burns to Kansas City and the Royals sent Brett Eibner to Oakland.
Burns, 26, doesn’t provide much in the way of offense, but he runs the bases well and plays solid defense. He was hitting .234/.270/.303 with 11 doubles, four triples, and 14 stolen bases in 274 plate appearances.
Eibner, 27, was batting .231/.286/.423 with three home runs and 10 RBI in 85 plate appearances. He has spent most of the season with Triple-A Omaha, where he’s put up a .902 OPS in 219 PA. Eibner played the outfield corners in the majors, but racked up a ton of time playing center in the minors, so his versatility will be valuable to the A’s.
Burns will become eligible for arbitration for the first time after the 2017 season while Eibner has hardly accrued any service time, which might explain part of the motivation behind the trade for the small-market Athletics.
The Nationals announced on Saturday afternoon that the club acquired closer Mark Melancon from the Pirates in exchange for reliever Felipe Rivero and minor league pitcher Taylor Hearn.
Melancon, 31, put together another solid season for the Pirates, leaving the club with 30 saves, a 1.51 ERA, and a 38/9 K/BB ratio in 41 2/3 innings. He led the majors last season with 51 saves and has a 1.80 ERA since joining the Pirates in 2013. Melancon is earning $9.65 million this season and can become eligible for free agency after the season.
With Melancon out of the picture, the Pirates intend to have Tony Watson take over the closer’s role.
Rivero, 25, has handled the seventh and eighth innings for the Nationals this season, compiling a 4.53 ERA and a 53/15 K/BB ratio in 49 2/3 innings. He’s just shy of one year of service time, so the Pirates will have control of him for a long time.
Hearn, 21, was rated the Nationals’ 27th-best prospect by MLB Pipeline. He was originally drafted by the Pirates in the 22nd round of the 2012 draft but he didn’t sign and ended up going back to college. The Nationals took him in the fifth round of last year’s draft. This season, between rookie ball and Single-A Hagerstown, Hearn put up a 2.79 ERA and a 39/13 K/BB ratio in 29 innings. He’s a long way away from the majors, so he’s essentially a lottery ticket for the Pirates.
The Nationals needed an upgrade at closer as Jonathan Papelbon has struggled this season. The right-hander has allowed runs in each of his last three appearances, ballooning his ERA up to 4.41 with a 30/13 K/BB ratio in 32 2/3 innings. It will be interesting to see how Papelbon, who has never made a habit of letting his feelings go unspoken, handles a demotion to the eighth inning.