Tom Schieffer on the Dodgers: “The complexity of the situation is daunting”

9 Comments

Tom Schieffer, the Dodgers’ trustee, sat for an interview with the Associated Press yesterday, and he described a situation that makes it seem impossible that Major League Baseball will truly have any sort of resolution of its investigation of Dodgers finances before their payroll comes due at the end of the month.

Indeed, he has found that there are 26 separate legal entities that make up the Dodgers empire these days — you may recall this lovely flow-chart, courtesy of Dodger Divorce — and that he’s trying to hack through them like he’s going through the jungle with a machete:

“The complexity of the situation is daunting. The way things are structured, sometimes they’re for tax purposes and sometimes they’re for liability purposes, but it does require you to try to follow the dollar through the process, and that takes a little bit of time. And some of the entities are shells that were set up maybe to do something else and that don’t really bear a great deal on it. What you’re trying to do is figure out what is pertinent … and it just takes a little bit of time.”

Pointless hyper-complexity: always the hallmark of a well-run organization.  But what’s scary is that, according to Schieffer, this structure isn’t necessarily uncommon in Major League Baseball:

He points out that the Dodgers’ complex structure – he says going through the documents “is drinking out of a fire hose” – is not dissimilar to how other clubs are set up. What is unique is the McCourts’ legal tangle: Jaime successfully persuaded a court to invalidate a postnuptial agreement giving Frank McCourt sole ownership of the franchise.

I don’t claim to be an expert on business, but this seems insane to me.  While they’re high profile operations, baseball teams aren’t necessarily complex businesses by their very nature. They put on performances, travel, have a payroll that, while big in dollars, isn’t gigantic in terms of head count, and have to answer back to a regulatory authority.  There are tons of businesses that fit that general profile that don’t require 26 levels of shell corporations and subsidiaries to make things work.

There is just an astounding lack of transparency in the way baseball teams are run. Given how much public interest — and in most cases, public subsidies — are involved in their operation, this shouldn’t be the case.

Source: Indians’ Plesac sent home after protocol misstep

Dennis Wierzbicki-USA TODAY Sports
3 Comments

Indians pitcher Zach Plesac was sent back to Cleveland on Sunday in a rental car after violating team rules and Major League Baseball’s coronavirus protocols, a club official told the Associated Press.

The official said the 25-year-old Plesac went out with friends in Chicago on Saturday night following his win against the White Sox. The person, who spoke on condition of anonymity because of the sensitivity of the situation, said the team got Plesac a car so he wouldn’t be around teammates in the event he contracted the virus.

It is not known if Plesac has been tested since breaking the team’s code of conduct. He will be isolated from the team and can not take part in team activities until he twice tests negative for COVID-19.

The Athletic first reported Plesac was sent home.

Indians team president Chris Antonetti is expected to address Plesac’s situation following the team’s game in Chicago on Sunday night.

Major League Baseball has been emphasizing the need for players to be more careful and follow its protocols in the wake of coronavirus outbreaks with the Miami Marlins and St. Louis Cardinals. The episode with Plesac, the nephew of former big league reliever Dan Plesac, is the most high-profile evidence of baseball’s increasing concern about its guidelines.

Last month, Plesac, who has become a reliable starter for the Indians, spoke of the importance of players abiding to the “code of conduct” that every team was required to submit to MLB in hopes of the 60-game regular season taking place.

“Definitely any time you can maintain social distancing is going to be what we have to focus on,” Plesac said July 3. “There are common sense situations, where you see things are packed, or going out to the bars and drinking – doing stuff like that isn’t stuff that’s really important to us right now and shouldn’t be important to us right now.

“We’re given this privilege to be able to come back and play and given this short window to even play. It’s a good time now just to really buckle down and focus on what’s important and work toward something greater at the end of the season and for these couple months, lock in and focus on what we have set for us at the end of the year.”

Plesac didn’t allow a run and limited the White Sox to five hits in six innings on Saturday to improve to 1-1.

More AP MLB: https://apnews.com/MLB and https://twitter.com/AP-Sports