Fay Vincent has a (severely flawed) idea about how to compensate players

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Former baseball commissioner Fay Vincent has a column in today’s Wall Street Journal in which, after noting how businessmen and actors get an equity stake or points on the gross in their deals, why baseball players can’t do the same thing and take an ownership interest in the team:

Mr. Pujols will in all likelihood negotiate a salary of around $35 million annually in a four- or five-year agreement. He and his agent will surely notice the enormous bite the tax collectors will take of that income. Why not take some of the pay in the form of a piece of the Cardinals franchise? Who would argue the Cardinals are not more valuable if they can keep him?

First: $35 million? Really? I kind of figured it would be like $30 million, but let’s save that for another day.

Second: As Vincent himself notes, baseball prohibits players from owning a stake in their team unless they get approval from the commissioner and unless, pursuant to Major League Rule 20(e), they sell their stake in the team if they switch teams.  Specifically, that rule provides that the agreement “shall provide for the immediate sale (and the terms there of) of such stock or other proprietary interest or financial interest in the event of the [player’s] transfer to or joining another Club.”

I’m just a dumb litigator, but I don’t think I’m wrong when I say that a player-ownership scenario that is designed to provide tax savings and greater flexibility is a tad bit hampered by a rule that requires the stake be divested immediately if the player switches teams.  That, my friends, would lead to an immediate taxable event. It would also severely hamper the value of the ownership stake, which would piss off both the player and the team’s majority owners, who likely don’t want to have to force chunks of the team out into the market the moment the team’s GM comes up with a spiffy trade.

Sure, you could change the rules about immediate divestment upon being traded, but then you run into the uncomfortable scenario of someone playing for the Cardinals, for example, who owns a stake in the Cubs. Or a Dodgers player — Juan Uribe, for example — whose wealth depends on the Giants having a greater franchise value.  In an age where franchise values are dependent upon regional sports network ratings, and those ratings are dependent upon winning and losing, that’s a recipe for disaster, is it not?

In other news, for all of Fay Vincent’s virtues, the game is way healthier, financially speaking, today than it was when he was commissioner. If this article is evidence of his business acumen, there may be a reason for that.

And That Happened . . . Classic!

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Due to the All-Star break, we now bring you a special “Classic” version of “And That Happened.” The following originally ran in the HardballTalk Tribune, the former print edition of this publication, on July 17 1949. Here are the scores. Here are the highlights: 

Reds 7, Dodgers 6: I haven’t seen Reds rally like this since Mao kicked Chiang Kai-shek’s butt over to Formosa! Brooklyn built a 4-1 lead after seven innings, but then Preacher Roe began to falter and Cincinnati clawed back. After a run on a fielder’s choice, Virgil Stallcup knocked in two with a single in the eighth to things at four. They’d trade runs and it was tied at five after nine, but Walker Cooper’s two-run homer in the top of the 10th gave the game to the visitors. This is a terrible Cincinnati team overall — you’re more likely to get a hit from a Red on the Hollywood 10 list than from one who plays in Crosley Field — but they really put it together yesterday afternoon.

Braves 9, Cubs 1: Pete Reiser tripled and knocked in three. I was thinking of ole Pistol Pete just four days ago when the owners got together and agreed to build warning paths before each fence in the outfield. Nice move, but it’s a few years too late for Pete, even if he’s still grinding it out. Meanwhile, Johnny Sain went the distance, allowing one run on six hits. Spahn won the day before. Consulting the forecast for the doubleheader in Cincinnati tomorrow now and . . . ugh, it looks sunny. I like the Reds’ chances. 

Indians 7, Athletics 3: Jim Hegan hit a three-run home run to lead the Tribe’s offense, but I’m more taken with what happened with their pitching. Steve Gromek got the “start” for the Indians, but he’s more often used as a relief pitcher. He pitched only an inning and a third, after which three other relievers — Mike Garcia, Gene Bearden and Satchel Paige — finished out the game. Seems like a kinda loopy thing to do, but it worked. I wonder if manager Lou Boudreau is trying out some sort of new strategy in which he just uses bullpen arms every few games for some reason? I’ll call it “Boudreu-ing.” I’m sure it won’t catch on.

White Sox 5, Senators 1: Cass Michaels hit a two-run double and a two-run single and Chisox starter Bob Kuzava allowed only an unearned run in a complete game. You won’t see a performance from Senators this bad until the real ones get together to ratify that “NATO” treaty next week. Don’t do it, fellas! Sure, NATO is great in theory — I’m all for stopping those Russkies before they can even get going — but this joint-defense thingamajig is TOTALLY dependent upon everyone agreeing its good and showing confidence in it! If even one country — one backwards banana republic that elects some tinpot wannabe dictator somehow — starts to undermine it, the thing will unravel and Russia’s power will grow immensely! This report hopes to God it doesn’t happen in his lifetime, but what about down the line? Hopefully the US of A will keep all of these other shaky members in line and backing their commitments.

Red Sox 11, Tigers 1: The Bosox beat the tar out of Virgil Trucks and Marv Grissom, with Williams, Doerr, Zarilla and Tebbetts each hitting homers and driving in multiple runs. The Tigers — as close to two games back of the Yankees in the American league a couple of times this year — need to get their pitching on track or else they’re gonna plummet faster than James Forrestal did in Bethesda.

Too soon?

Phillies 4, Cardinals 2: Willie Jones homered and singled in a run and the Phillies scored two more on an error and a wild pitch. Guess the catcher was more crossed-up by Harry Brecheen’s screwball than the Phillies were. Despite the win, the Phillies are struggling lately and remain 6.5 back in the National League. A month ago they were only two games out. That injury to first baseman Eddie Waitkus (15-day DL, shot in the goddamn chest by obsessed fan Ruth Steinhagen) is really starting to affect them.

Browns 4, Yankees 2: 3,481 fans showed up for this one, which isn’t bad for a Browns game! They only played six innings here because of bad weather. It may have been the greatest game so far this season for the 25-55 Browns. As for the Yankees, yes, they’ve been doing OK, but rookie manager Casey Stengel is no Joe McCarthy, and I’d wager that last year’s third place finish is a more likely result this year than them staying in first place. The Red Sox are too strong and I think Boston will take the pennant. To be honest, those two clubs should investigate a big trade — Williams for DiMaggio — that helps unload each team’s biggest problem on the other. Do it Yawkey and MacPhail! 

Pirates 9, Giants 0; Pirates 7, Giants 6: From 30 feet away the Giants look like they have an OK lineup. From 10 feet away it looks like something made up to be seen from 30 feet away. At least that’s how it was in Game 1 of this twin bill when Bob Chenes shut ’em out. Wally Westlake — who hit two longballs — and the rest of the Pirates lineup beat Giants starter Clint Hartung’s teeth out and then kicked him in the stomach for mumbling. Game two was a closer affair. The Giants still couldn’t find a way to win but when you play extra innings you lose more slowly. The Giants were in first place for a time this year, but not anymore. Now they’re in the deep water. It’s dark and unclear and the taste of the salt is in their mouths. By the time the second game of the twin bill was over it was getting dark on the streets of the big city, with the rain-clouded lights of the stores soaked up by the black street.