Why players can't own a piece of the team - MLB

Employee owenrship.gif I’ve always known that players can’t hold equity stakes in their teams due to the Basic Agreement (see paragraph 4(c) on p. 213 of this massive document), but I never knew why.

Today, however, Kevin Goldstein of Baseball Prospectus explains. Once upon a time Rogers Hornsby got a cut of the Cardinals, was traded to the Giants, and quickly found his ownership stake to be a conflict of interest. And it got worst when he went to divest, as the Cardinals tried to lowball him, leading to everyone in the National League having to chip in to buy him off. As a result of all of that, the rule was passed and has been incorporated into player contracts and/or the Basic Agreement ever since.

The only exception: players can take a stake in the team with special approval of the Commissioner. Goldstein speculates whether or a team could give a chunk of the team to a player with language built in to deal with any Hornsby-esque conflicts of interest and have it approved by Selig. He dismisses it almost immediately, however, which is probably sensible given that it’s not likely to ever happen.

The only thing I’d add is the notion of maybe offering a player a chunk of a team — or at least the option to buy a chunk of the team — that doesn’t vest until retirement. I kind of doubt that would ever happen, though, because it would require something akin to financial transparency for baseball teams and they really, really hate that.

CARSON CITY, Nev. — The Nevada Senate adjourned Thursday without voting on a financing bill for a proposed $1.5 billion Las Vegas Strip stadium for the Oakland Athletics, extending the special legislative session into the next week amid negotiations over whether to contribute $380 million in public funding to the project.

The measure can still be amended by lawmakers, and if it passes the Senate it would still need approval from the Assembly before going to the desk of Republican Gov. Joe Lombardo, who has expressed support for it. Both the state Senate and Assembly are adjourned until Monday.

In a hearing that began Wednesday and stretched into the early morning hours Thursday, lawmakers peppered tourism officials and a representative from a firm partnering with the ball club with questions about the feasibility and benefits of financing such a deal.

Public funds for the stadium would mainly come from $180 million in transferable tax credits and $120 million in county bonds. Backers have pledged that the creation of a special tax district around the proposed stadium would generate enough money to pay off those bonds and interest. The plan would not directly raise taxes.

The A’s would not owe property taxes for the publicly owned stadium. Clark County, which includes Las Vegas, would also contribute $25 million in credit toward infrastructure costs.

A’s representatives and some tourism officials say a deal would further grow Las Vegas’ developing sports scene and act as an economic engine, but a growing chorus of economists and some lawmakers warn that the project would bring minimal benefits for the hefty public price tag.