The San Jose lawsuit against Major League Baseball should be thrown out of court

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So I’ve read over the lawsuit filed by San Jose against Major League Baseball. Initial reaction: it’s more full of crap than Bob Melvin’s office was on Sunday afternoon.

The essence of the suit: Major League Baseball is a monopoly. It should be an unlawful monopoly. This would-be unlawful monopoly is preventing the Athletics from moving to San Jose and that has caused San Jose all manner of financial harm.

Which, yes, sounds reasonable. Major League Baseball is anti-competitive and does have a monopoly that should go the way of the dodo and vaudeville for the simple reason that it serves no purpose as noble and grand as either the dodo or vaudeville did.  But the suit is not anything that should pass legal muster here, and I believe it will go down in flames.

As I said in the earlier post, courts do not entertain lawsuits from parties without standing to sue and the city of San Jose hasn’t asserted anything in this complaint that persuades me that they have standing. Or that they have been damaged in any way that a court will consider worthy of redress. Broadly speaking, they have claimed that (a) they have a contract with the owners of the Oakland A’s with which Major League Baseball’s actions have interfered; and (b) that the city has incurred or will incur — note the “will” — financial damages as a result of the A’s not moving to San Jose. Let’s break those down:

The tortious interference with a contract claim:  The contract claim is baed on an option agreement entered into in 2011 between the A’s owners and San Jose for the purchase of some land on which a ballpark would be built. The A’s paid San Jose $50,000 for the option. It expires this fall. If they want to keep the option open for another year it’s another $25,000. If the A’s owners were to buy the land, they can do it for between $6 million and $7 million. Nothing in the option agreement, however, promises that the A’s will actually move. It doesn’t even promise that they’ll buy the land. Just that they have the option to do so.

San Jose, however, seems to be attempting to bootstrap this option into a promise that the A’s would actually move there and that MLB’s rules preventing the A’s from moving have thus interfered with that expectation. That’s a bridge too far. A bridge longer than the Dumbarton, actually. The only guarantee San Jose gets out of that contract is $50-75K. The only thing it’s giving up is the right to sell that land for the period of the option. Major League Baseball has not stopped the A’s from paying their $50-75K.

San Jose’s insistence that more has been lost here is based on an assertion that the A’s have indicated a willingness to move to San Jose. Well, yes, they have. But they haven’t done anything to act on it yet because they know they can’t. At the minimum, I would think a court would need to have evidence that the A’s actually took a concrete step to pay San Jose $7 million for that land, to actually move to San Jose only to have had Major League Baseball stop that from happening. There is no suggestion, however, that any such evidence exists.

The financial damages: It’s all future tense. San Jose would have gotten increased tax revenue, would have gotten good paying stadium construction jobs, would have seen economic development and would have had a more healthy municipal budget had the A’s moved. Those are all speculative, prospective damages* not actual damages, and courts are not in the business of providing redress for speculative, prospective damages. Tomorrow Lew Wolff could say “you know what? I always wanted to move the A’s to Bakersfield. We’re moving to Bakersfield.” If he did that, San Jose would have no recourse. So they certainly have no recourse against Major League Baseball for preventing a speculative A’s-to-San Jose move.

*Probably also worth noting that the complaint spends a lot of time talking about all the economic benefits of ballpark development. These benefits have been largely debunked. I sorta hope this suit goes far, however, so that MLB would find itself in the odd position of having to explain how such damages are illusory, contrary to their tack for the past 25 years or so.

I think Major League Baseball’s antitrust exemption is abhorrent. I wish it were gone and think, in the right lawsuit, it could be defeated. If the A’s had filed this suit, for example, claiming that MLB is preventing them from moving and that MLB’s insistence that they stay in Oakland has caused them financial damages, I think it would have a puncher’s chance. And I’d be shaking my pompoms, cheering it on. But they didn’t file it. San Jose did. And San Jose has no legal rights that seem remotely impinged upon here.

Which, it should be worth noting, may be the idea. It’s quite possible that this suit is more a political document than a legal one, with San Jose’s mayor trying to focus attention on the languishing A’s-to-San Jose thing and to get public opinion on the side of the A’s and the city.  Maybe this will do that, maybe it won’t. I’d have to know the political dynamics of the Bay Area better than I do to have an idea.

But I do think that for it to have any practical use in creating leverage it has to at least present a legal threat, and this doesn’t do that. Indeed, I think Major League Baseball is way more worried about losing its antitrust exemption than any bad PR that can come out of Oakland, so they’re likely to fight this suit until it’s dead.

Which should be quickly. Because the suit is no better than the stuff bubbling up through the Oakland Coliseum’s pipes and should be thrown out.

Yankees sign top two draft picks

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The Yankees signed first-round draft pick Clarke Schmidt and second-round pick Matt Sauer on Saturday, per a team announcement. Schmidt, a right-hander from the University of South Carolina, is set to earn a signing bonus of $2,184,300. According to MLB.com’s Oliver Macklin, that’s much lower than the typical $3+ million allocated for a No. 16 overall pick. The opposite is true for Sauer, whose projected $2.5 million signing bonus tops the suggested $1.2 million reserved for a No. 54 pick.

Schmidt, 21, boasts an impressive four-pitch repertoire and profiles as a front-end or mid-rotation starter, according to reports from Yankees’ VP of Domestic Amateur Scouting Damon Oppenheimer and ESPN’s Keith Law, among others. He carried a 4-2 record through nine starts in 2017 and turned in a 1.34 ERA before undergoing season-ending Tommy John surgery last month to repair a torn UCL in his right elbow. While the Yankees won’t see him pitch at any level until late 2018, they seem confident in his makeup and ability to rebound over the next couple of years.

Fellow right-hander and Righetti High School senior Matt Sauer is a different story altogether. The 18-year-old hurler appears destined for the bullpen with a polished fastball-slider combo and a promising curveball and changeup. He dazzled on the mound this year, going 9-1 with an 0.98 ERA and two shutouts over 78 1/3 innings. While the Yankees seem most interested in his pitching skills, Sauer showed some pop at the plate as well, touting a .427 average with 24 RBI through 135 plate appearances.

Three A’s rookies hit their first big league home runs on Saturday

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The Athletics followed Friday’s 3-0 shutout with a rookie-led home run derby on Saturday afternoon, watching not one, not two, but three rookies belt their first major league home runs off of the White Sox’ James Shields.

Right fielder Matt Olson was the first to strike, taking Shields deep on a first-pitch, two-run blast in the first inning for his first home run in 49 major league plate appearances:

Fellow outfielder Jaycob Brugman duplicated his teammate’s results in the second inning with a solo home run, his first extra-base hit of any kind since he made his debut on June 9:

In the third, with a comfortable 4-0 lead backing two scoreless frames from Oakland right-hander Daniel Gossett, Franklin Barreto took his shot at Shields. After getting the call several hours prior to Saturday’s game, he became the fastest of the three rookies to record his first big league homer, going yard on a 2-2 changeup and driving in Bruce Maxwell to give the A’s a six-run advantage.

The Athletics currently lead the White Sox 8-2 in the top of the sixth inning.