MLB Commissioner Bud Selig speaks during a news conference in New York

It’s hard to see today’s ruling as a victory for San Jose

19 Comments

I’ve taken a few minutes to gather some thoughts on today’s decision in the San Jose-MLB antitrust lawsuit. I have still not read the decision, but it does appear that the status being currently reported is accurate: (1) the argument by San Jose to have Major League Baseball’s antitrust exemption struck down, thereby paving the way for the A’s to move to San Jose over the Giants’ objection has been dismissed; and (2) San Jose continues to have a viable claim against MLB for tortious interference with the city’s contract(s) with the Athletics, which will be pursued under state law.

Let’s take those one-by-one:

San Jose’s Antitrust claim

This was obviously the big target here. And a nice fat one if San Jose could’ve convinced the judge that baseball’s antitrust exemption — which prevents a team from moving into another’s territory — is stupid and wrong.  And the judge did, apparently, say that the exemption is stupid and wrong. Unfortunately he also said that he felt bound by Supreme Court precedent to uphold it, so that matter will now likely be the subject of an appeal. Major League Baseball still has risk of losing their exemption on appeal, but they just bought a year at least before an appeals court rules on it and longer than that before the matter might get to the Supreme Court, which would ultimately have to weigh in to overturn the original case which granted the exemption.

With the claims to overturn the exemption gone, at least for now, the A’s will be unable to move to San Jose. The league rule establishing San Jose as the San Francisco Giants’ territory holds, thus preventing the A’s from going to San Jose.

The state tort law claims

This is the claim alleging that MLB tortiously interfered with San Jose’s contract with the A’s. If you recall: the contract is 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 soon. 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.

Of course, since the antitrust exemption is in place, the A’s can’t just decide to move to San Jose. Therefore, unless they are the biggest idiots on the planet, they will not agree to commit to the $7 million land deal. Put differently, no A’s witness will get on a stand and say “yes, we totally want to give San Jose $7 million right now but MLB won’t let us!”  As such, the value of the contract that San Jose now has to prove MLB interfered with is $75,000. That’s it.

Where that leaves us

Much of the reaction in the past few hours — including opinion from legal minds I respect, such as FanGraphs’ Wendy Thurm — has it that this outcome gives San Jose leverage to force a deal with MLB to get the A’s to San Jose.  I’ll grant that they’re better off now than they would be if the whole suit had been tossed — and I do want to read their thoughts on it and may change my mind on the matter if they point out something I’m totally missing here — but I can’t see how San Jose suddenly has much more leverage than it had before.

One idea is that Major League Baseball might fear discovery and depositions that could take place.  I’ll grant that no one wants to have their deposition taken, how threatening is this really? The current claim is limited in scope: $75K on a land option. How much email traffic do you think MLB officials have had on that? And how much of it is damning? Sure, maybe there’s all kinds of stuff about how MLB is “conspiring” to keep the A’s out of San Jose, but so what? The court just ruled that, under the antitrust exemption, such behavior is totally legal!

More broadly: how dumb is Major League Baseball? Not too dumb, usually. The entire purpose of Bud’s famous committee on San Jose was to do … nothing. There are likely reports about city and stadium viability and all of that, but the reason you set up that committee is to funnel everything to it and make it disappear for half a decade. Or at least to have it sit there innocuously. It’s staffed, by the way, in part by lawyers who have worked for MLB before. You think they’re sitting on smoking guns? Hardly.

Any effort by San Jose to dig deeper than the matters specific to the A’s and their option contract is irrelevant and discovery about that stuff will be resisted. Maybe they get some things, maybe they don’t. But they don’t get the keys to all of MLB’s finances and Bud Selig’s health records and the famous list of positive PED players and Larry Baer’s grandmother’s apple fritter recipe. With limits on discovery there are limits on leverage. And with an existing claim this small, the discovery will be limited.

OK, long enough, Craig, sum it up

Having a claim hanging out there is not good for MLB. But having a trial court decision that the antitrust exemption is still the law outweighs it for now. There was pressure on MLB to avoid a bad decision on that in the trial court and that didn’t get them to the settlement table. There is now pressure, to a degree, to resolve this before an appeals court decides differently. But that’s down the road a bit, and if anything the league has more breathing room on that today than it did yesterday.

It’s a partial win for San Jose, sure. But they lost the big claim and have gained nothing in the short term. More importantly, this does nothing to get the A’s any close to San Jose.

Ichiro was happy to see Pete Rose get defensive about his hits record

SAN DIEGO, CALIFORNIA - JUNE 14:  Ichiro Suzuki #51 of the Miami Marlins warms-up during batting practice before a baseball game against the San Diego Padres at PETCO Park on June 14, 2016 in San Diego, California.   (Photo by Denis Poroy/Getty Images)
22 Comments

You’ll recall the little controversy last month when Ichiro Suzuki passed Pete Rose’s hit total. Specifically, when Ichiro’s Japanese and American hit total reached Rose’s American total of 4,256 and a lot of people talked about Ichiro being the new “Hit King.” You’ll also recall that Rose himself got snippy about it, wondering if people would now think of him as “the Hit Queen,” which he took to be disrespect.

There’s a profile of Ichiro over at ESPN the Magazine and reporter Marly Rivera asked Ichiro about that. Ichiro’s comments were interesting and quite insightful about how ego and public perception work in the United States:

I was actually happy to see the Hit King get defensive. I kind of felt I was accepted. I heard that about five years ago Pete Rose did an interview, and he said that he wished that I could break that record. Obviously, this time around it was a different vibe. In the 16 years that I have been here, what I’ve noticed is that in America, when people feel like a person is below them, not just in numbers but in general, they will kind of talk you up. But then when you get up to the same level or maybe even higher, they get in attack mode; they are maybe not as supportive. I kind of felt that this time.

There’s a hell of a lot of truth to that. Whatever professional environment you’re in, you’ll see this play out. If you want to know how you’re doing, look at who your enemies and critics are. If they’re senior to you or better-established in your field, you’re probably doing something right. And they’re probably pretty insecure and maybe even a little afraid of you.

The rest of the article is well worth your time. Ichiro seems like a fascinating, insightful and intelligent dude.

There will be no criminal charges arising out of Curt Schilling’s video game debacle

Curt Schilling
12 Comments

In 2012 Curt Schilling’s video game company, 38 Studios, delivered the fantasy role-playing game it had spent millions of dollars and countless man hours trying to deliver. And then the company folded, leaving both its employees and Rhode Island taxpayers, who underwrote much of the company’s operations via $75 million in loans, holding the bag.

The fallout to 38 Studios’ demise was more than what you see in your average business debacle. Rhode Island accused Schilling and his company of acts tantamount to fraud, claiming that it accepted tax dollars while withholding information about the true state of the company’s finances. Former employees, meanwhile, claimed — quite credibly, according to reports of the matter — that they too were lured to Rhode Island believing that their jobs were far more secure than they were. Many found themselves in extreme states of crisis when Schilling abruptly closed the company’s doors. For his part, Schilling has assailed Rhode Island politicians for using him as a scapegoat and a political punching bag in order to distract the public from their own misdeeds. There seems to be truth to everyone’s claims to some degree.

As a result of all of this, there have been several investigations and lawsuits into 38 Studios’ collapse. In 2012 the feds investigated the company and declined to bring charges. There is currently a civil lawsuit afoot and, alongside it, the State of Rhode Island has investigated for four years to see if anyone could be charged with a crime. Today there was an unexpected press conference in which it was revealed that, no, no one associated with 38 Studios will be charged with anything:

An eight-page explanation of the decision concluded by saying that “the quantity and qualify of the evidence of any criminal activity fell short of what would be necessary to prove any allegation beyond a reasonable doubt and as such the Rules of Professional Conduct precluded even offering a criminal charge for grand jury consideration.”

Schilling will likely crow about this on his various social media platforms, claiming it totally vindicates him. But, as he is a close watcher of any and all events related to Hillary Clinton, he no doubt knows that a long investigation resulting in a declination to file charges due to lack of evidence is not the same thing as a vindication. Bad judgment and poor management are still bad things, even if they’re not criminal matters.

Someone let me know if Schilling’s head explodes if and when someone points that out to him.