Category Archives: Owners

February 16, 2024

No Frenzy

Yesterday, baseball commissioner Rob Manfred said that the owners asked the Players Association for a free agent signing period.

Sometimes I think these sorts of rules come up not just to save money, but because GMs are lazy. Draft slot bonuses, international bonus pool money, this idea, all let the GMs say, “Sorry, I can’t negotiate any more, my hands are tied.”

This is a bad idea from many angles:

“With the system we have right now, one of the tactics that’s available to player representatives is to stretch out the negotiations in the beliefs they’re going to get a better deal,” Manfred said. “That’s part of the system right now. There’s not a lot we can do about it. Certainly, from an aspirational perspective, we’d rather have two weeks of flurried activity in December, preferably around the winter meetings.” 

It is a given that deadlines are created to insure the best deal. Does it matter that it is two weeks or four months? In the case of a sport, it certainly does. If a contender were to lose a star outfielder to an injury tomorrow, would not Cody Bellinger become more valuable? The same with Blake Snell if a front line starter goes down for a year due to surgery.

Likewise for a team, if Snell and Bellinger remain unsigned into March, some team that wasn’t in the mix might be able to swoop in with a cost effective deal that provides some other incentives like opt outs or an extra year. More information benefits both sides.

If the MLBPA is smart, however, they could leverage this into a better free agent environment. A counter could be free agency after six professional seasons, not six years in the majors and no free agent compensation for teams losing players. Getting young players to free agency sooner is the best way to get more money to the players providing the most production.

February 1, 2024

Lying to Politicians

Maryland politicians got a dose of their own medicine over the Orioles sale:

The other members of the Board of Public Works who signed off on the lease — Treasurer Dereck Davis and Comptroller Brooke Lierman, both Democrats — told The Baltimore Banner that they weren’t notified of the sale, either.

Davis spoke out at the Board of Public Works meeting, saying he felt Angelos lied to state officials.

In December, Angelos had placed a call to Moore to assure him that the Orioles were not for sale — which came after reports that Rubenstein was close to buying the team.

Davis said he was troubled by the fact that Angelos “categorically denied that that they were for sale” and then went and sold the team.

“I feel lied to. I feel misled,” Davis said.

TheBaltimoreBanner.com

Maybe they weren’t told over a lack of trust.

January 30, 2024 September 8, 2023

Reports of Stephen Strasburg’s News Conference Were Greatly Exaggerated

The Nationals owner chided the media for reporting on a press conference that was never scheduled:

Owner Mark Lerner released a rare statement Friday to respond to a variety of reports about a news conference, which was being planned for Saturday but never announced by the team.

“While we have been following the process required by the collective bargaining agreement, behind-the-scenes preparations for a press conference had begun internally,” Lerner said in a statement. “However, no such event was ever confirmed by the team or promoted publicly.”

“It is regrettable that private discussions have been made public through anonymous sources attempting to negotiate through the media,” Lerner said.

ESPN.com

I thought something might be up when I was hearing that Strasburg was not giving up his salary. Retirement basically means canceling the deal, which is what happened with Alex Rodriguez. So until the salary is settled, we won’t be hearing anything official.

July 18, 2023

Joanie Loves Chachi

Liberty Media spun off the Atlanta Braves:

Perhaps most notable is fans will be able to purchase stock in the newly created Atlanta Braves Holdings Inc. and become owners of the team.

Plans for the spinoff were announced last year and made final in a vote by Liberty stockholders, led by chairman John Malone, on Monday.

Braves chairman Terry McGuirk and president Derek Schiller will continue their lead roles in the team and The Battery Atlanta, the mixed-use development adjacent to Truist Park that includes business, a hotel, restaurants, a concert venue and other properties.

“So no surprises here, no changes really,” McGuirk said Tuesday. “The purpose here today is we absolutely want to tell you that it’s business as usual. There are no changes to how we operate. I am still the control person of the team.”

ESPN.com

The Braves are an incredibly successful team, and the spinoff should do well for Liberty. I suspect fans will be more than happy to own a part of the franchise.

April 8, 2023

More On Reynolds

The Pirates and Bryan Reynolds appear to be on speaking terms. The following happened on Friday during batting practice:

Pirates owner Bob Nutting approached Reynolds around the batting cage and the two shared a laugh.

Despite what has happened over the past few months, there’s a mutual respect and admiration there. It’s also true that business and trying to do what’s best for each party has clashed.

But if the Pirates and Reynolds are going to get something done, this could be how it happens, Nutting and Reynolds talking face to face, figuring out a reasonable path forward. After all, Nutting does genuinely want Reynolds here. The Pirates’ eight-year, $106.75 million should offer at least some proof of that.

“I really appreciate and respect Bryan,” Nutting told the Post-Gazette before Friday’s game. “Everybody is working really hard and continues to work really hard.

“Certainly our goal — and I think Bryan’s goal — is for him to be part of the Pirates for a long time.”

Post-Gazette.com

This could be another Aaron Judge situation, where saying no to a contract turns out to be the right move for the player. Judge was able to overcome the animosity created by the rejection, and it looks like Reynolds might also. Winning fixes a lot of ills.

April 3, 2023 March 23, 2023

The Forbes List

Forbes Magazine published its yearly list of baseball franchise values. In a high inflation year, team values are up on average 12%.

The average MLB team value is up 12% this year, to $2.32 billion. During the 2022 season, revenue (net of stadium debt service) increased 7.8%, to an all-time high of $10.3 billion. The top-line gain was driven by a 64% increase in ticket revenue (including postseason and spring training), to $2.4 billion (the 2021 season started with nearly all ballparks under capacity restrictions) and a 35% increase in premium seating (suites and club seating) revenue, to $$1.16 billion. But operating income (in the sense of earnings before interest, taxes, depreciation and amortization) came in at an average of $17.7 million per team, down 20% from the previous season as player costs (salaries, bonuses and benefits) rose 13%, to $5.2 billion, and an increase in SG&A expenses.

Forbes.com

So the CBA worked in putting more money in the pockets of players.

The Yankees are the most valuable franchise at $7.1 billion, thanks in part to a Regional Sports Network that still makes money. At bottom sit the Marlins, worth just $1 billion.

February 21, 2023

Suing the Mets

Phil Regan is suing the Mets for age discrimination:

The Mets made Regan interim pitching coach under then-manager Mickey Callaway when they fired Dave Eiland midway through the 2019 season. Regan, then 82, was not retained, however, alleging that then-general manager Brodie Van Wagenen told him he was “too old,” per the lawsuit obtained by TMZ.

ESPN.com

This strikes me as one of those cases where the Mets should just settle. Steve Cohen could say, “That was the previous regime. That’s not how we operate,” and reach a decent settlement. It would be good for Regan and good PR for the club.

February 20, 2023

The Mets Future

Mets Owner Steve Cohen talked about his long-term plans for the franchise on Monday (may require a subscription):

For Steve Cohen, that word is “listen.” And on Monday, the owner whose spending has rankled his peers across the industry was hoping they would take heed of one point in particular.

“Listen,” Cohen said, “ultimately the path is to create a sustainable farm system. That’s how we’re going to lower our payroll in a way that doesn’t hurt our success. That’s where we ultimately have to go, at least for me, to consider my ownership a success.”

TheAthletic.com

Some may see Cohen as a new George Steinbrenner, but I held out a small probability that he might be Wayne Huizenga. Win the World Series, then sell off your players for prospects to build a sustainable model. The Marlins did win another World Series within a decade, but they failed to build a sustainable model.

February 6, 2023

Brotherly Love

The Angelos brothers settled their dispute over control of the Orioles:

Lou Angelos sued John last year, claiming John took control of the Orioles at his expense. Georgia Angelos, their mother, also was named as a defendant.

In a Friday court filing in the case, John, Lou, Georgia and Peter Angelos called on “all claims, including all counterclaims and defenses, asserted therein be dismissed with prejudice in their entirety.”

ESPN.com

I’m glad they found a way out of this. It always pains me to see family members that don’t get along.

January 18, 2023

Opry Baseball

Former pitcher, agent, and general manager Dave Stewart works diligently to build a group that can put an expansion team in Nashville, Tennessee. MLB will not move on expansion until Oakland and Tampa Bay resolve their stadium situations, but Stewart wants everything in place:

The uncertain timetable creates a quandary for groups like Music City Baseball. How do you build a baseball team without the guarantee of ever even having a baseball team? Stewart and his colleagues described the effort as something akin to building a home. The foundation must be ready by the time MLB opts for more construction. “Truth is, what we have time to do is just think,” Stewart said. “And paint a picture, paint a canvas, paint our vision.”

Added managing director John Loar, “We’re trying to control things we can control. And build our organization and build a brand and a team — before it’s a team.”

TheAthletic.com

The group is recruiting people who tried to buy a baseball team in the past but fell short.

Unstated in the article is another advantage to building now. Both Oakland and Tampa Bay could move if their stadium situations stall. This group could buy one of those teams and move to them to Nashville as well, which might be cheaper in the long run and could even lead to a championship season quicker.

January 17, 2023

Speaking for the Sons

A couple of sons of owners who have moved into team control might wish to think about hiring a spokesman. First, Reds president Phil Castellini:

“He did open up that talk asserting that the Reds were a nonprofit organization,” said Tracey Johnson, a season ticket holder and Rosie Reds member. “I’ve worked for 501(c)(3)s and I was appalled, to say the least. It went down from there. He was very much trying to really back up, ‘hey, we’re trying and the system is fixed against us.’”

TheAthletic.com

Then John Angelos of the Orioles makes the mistake of telling a reporter how to do his job rather than issuing a “No comment”:

Neither of these incidents represent the first time these people have performed poorly speaking publicly.

When players were receiving DUIs, I suggested that they hire a driver. Ride services appear to have taken care of that problem. I suggest these owners hire someone who can speak for the owners.

No one is good at everything, and dealing with the press and the public can be harrowing. There are people who are good at this, people who can convey optimism about a season, support for the fans, and support for the players. They can successfully deflect potentially embarrassing questions so the owners don’t get pilloried in the press.

Castellini and Angelos might be perfectly fine owners, but they should leave the talking to someone else. Otherwise, they better win.

December 21, 2022

Betting on the Mets

The odds of the Mets winning the World Series moved to favorite status with the signing of Carlos Correa. They’ve been a good bet all off-season, but now they are tied with the Astros at the top.

Odds movement provided by BetMGM’s John Ewing

+1100: At the start of free agency — Tied for fifth-best odds with the Braves.

+1700: DeGrom signs with the Rangers — Seventh best odds.

+900: Verlander agrees to deal with Mets — Fourth-best odds.

+1000: Odds move back a little (before Correa) — Tied for fourth-best odds with the Padres.

+650: Correa signs while the world was sleeping — Tied for the best odds with the Astros.

NYPost.com

I’m awaiting all the stories about how Steve Cohen is bad for baseball, and the parodies that go along with them.

December 11, 2022

What Cap?

The Mets add Japanese pitcher Koduai Senga* to their rotation on a five-year, $75 million contract. In Nippon Professional Baseball, he posted a 2.59 ERA in 1089 innings over eleven seasons. He also pitched another 250 innings or so in the Japanese Western League. So his workload was low and spread out over the full year. The Mets are paying for one and a half WAR per season, and that seems reasonable.

*Baseball Reference spells the first name with a u. Other publications omit the u.

The striking thing, however, is the Mets projected payroll:

Those moves push New York’s projected 2023 payroll to around $340 million right now — well beyond the highest luxury-tax threshold of $293 million. And that’s without any other major additions this winter.

Under Cohen, who bought the club in November 2020, the Mets became baseball’s biggest spender this year for the first time since 1989. Their payroll was $273.9 million as of Aug. 31, with final figures that include bonuses yet to be compiled.

Chron.com

The question of course, is did the Mets spend the money well? Steve Cohen clearly wants a championship now.

It’s also nice to see an owner breaking the rules again. I suspect Cohen will soon come under fire from small market clubs the way George Steinbrenner did in his hey day. An owner who wants to go all-out to win is good for the game, it keeps the other owners from getting complacent.

November 30, 2022

Hereditary Ownership

The third generation of the Pohlad family takes over the Twins:

Minnesota Twins owner Jim Pohlad has handed day-to-day operations of the club to his nephew Joe Pohlad, the third generation of family leadership of the franchise.

Jim Pohlad announced the transition in a letter to staff on Monday that was made public by the Twins. He said he will remain controlling owner, involved in Twins and Major League Baseball business. Joe Pohlad will become executive chair, and president and CEO Dave St. Peter and president of baseball operations Derek Falvey will report directly to him.

ESPN.com

The Twins own a decent, not great record under the Pohlads, who took over the team in 1984. They rank 17th in winning percentage in that time, 3018-3130, a .491 winning percentage. They did win two World Series titles, however, one of eleven teams to win multiple World Series in that time frame.*

    *Note that this includes a number of small market franchises, include the Blue Jays, Royals, and Marlins. Do we count the Astros as well?

    November 30, 2022

    Big Ass Money

    MLB sold the last 15% of BAMTech (which grew from MLB Advanced Media) to Disney for $900 million.

    The easy short-term takeaway here is that each team just gained $30 million. Obviously, we shouldn’t be shallow enough to believe teams are going to or should be required to turn around and increase their player payrolls by $30 million apiece. There are many costs to running a team other than payroll, of course. 

    CBSSports.com

    There might even be a hefty tax bill on the capital gain. One way to look at it, however, is that every team can afford a star free agent for a year!

    I love the story of MLBAM, as it runs against the history of baseball broadcasts. Baseball failed to embrace both radio and television as ways to bring the games to people, thinking it would hurt ticket sales. If fact, delivering live action to people created more fans that eventually brought more people to the park.

    MLB did not make the same mistake with the internet. The league wanted to deliver content over IP, but in order to do so they needed to improve streaming algorithms. That proved to be much more valuable, as most streaming services today are based on BAMTech software. It also provided the owners with an income stream independent of the game.

    It’s one reason the owners had leverage over the players in the previous decade of labor negotiations. They could walk away from the game and still have a very nice income. That’s not quite true any more. We’ll see how much of this windfall gets invest back into the game and the players. It might be a very good year for teams competing for free agents.

    November 11, 2022

    Clicked Off

    The Astros and general manager James Click failed to reach an agreement on a new contract. Click rejected a one-year offer:

    Conflict within the organization on baseball operations decision-making persisted throughout the Astros’ championship run this season, sources told ESPN, and Click’s reticence to accept owner Jim Crane’s one-year contract offer was the talk of baseball’s GM meetings in Las Vegas.

    ESPN.com

    I find this very odd, as it’s not clear where the conflict existed. The local Houston article has little else, except this:

    USA Today’s Bob Nightengale reported that Click was “offered a one-year contract and raise from his $1 million salary on Monday, turned it down in pursuit of a longer contract, and was dismissed Friday after publicly airing his grievances at the GM meetings.”

    Chron.com

    I assume it will be fairly easy for Click to find another job, given his success with the Astros post-scandal.

    November 10, 2022

    Selling a Rebuild

    The Washington Post discusses how uncertainty about the ownership situation and the 2023 payroll doesn’t hurt the Nationals much. They are still in the early stages of a rebuild:

    Asked to connect some dots Wednesday,to explain whether the ongoing sale process will affect spending this offseason, General Manager Mike Rizzo kept with the company line, saying, “We’ve been told to do business as usual.” The reality is Washington is both being shopped and at a rebuilding stage that wouldn’t typically yield splashy signings. Yet key details remain up in the air.

    WAshingtonPost.com

    Free agent signings or big trades typically come when the young core is in place and the front office needs to fill holes. Buying a team is very expensive, so a low payroll makes the sale easier. I would also think that buying a team that is near ready to compete would also make the sale easier, because good teams tend to bring in the fans and revenue. If someone wanted to buy a team right now, the Nationals should be a much better deal than the Angels.

    September 14, 2022

    Minor Union

    The Minors League became unionized today, as the MLBPA now represents them. MLB was very kind in their remarks:

    In a statement, the league said: “Major League Baseball has a long history of bargaining in good faith with unions, including those representing minor and major league umpires, and major league players. We respect the right of workers to decide for themselves whether to unionize. Based on the authorization cards gathered, MLB has voluntarily and promptly recognized the MLBPA as the representatives of minor league players. We are hopeful that a timely and fair collective bargaining agreement will be reached that is good for the game, minor league players and our fans.”

    ESPN.com

    I keep getting the feeling that this might be the reaction of the union in a few months:

    July 25, 2022

    Draft Dead

    The MLBPA chose amateurs over money as they rejected the proposal for an international draft.

    The Major League Baseball Players Association formally rejected MLB’s last proposal on an international draft on Monday, the deadline for both sides to reach agreement on a long-standing issue with major ripple effects. The absence of a draft means the qualifying-offer system and the international signing period will each remain as is.

    The two sides exchanged a total of four proposals this month, including two last weekend, and were consistently far apart on the amount of money that would be guaranteed to future international amateur players.

    ESPN.com

    I hope this is a start toward tearing down restrictions on players, including a shorter time to free agency and an end to the current amateur draft. This is the first step I’ve seen in that direction in a long time.

    July 17, 2022

    Soto and the Nationals

    Someone leaked that the Nationals offered Juan Soto $440 million for fifteen years, and Soto turned down the offer. The leak upset Soto, which is fine, but the information certainly would put the Nationals front office in a better light if they trade Soto away:

    Turning down that kind of money is amazing to me. Most players want to be the highest paid in the game. I can only imagine that Scott Boras believes he can get Soto a $500 million deal.

    This is a tough situation for the Nationals. If Soto is a rental, they won’t get too much for him. I would think Washington needs at least three young players who can make a difference quickly. They night only get that if the contender can sign Soto, or if the contender has not won in so long that they feel Soto can make a difference. The Padres, Guardians, and Mariners fit that latter category.

    Stay tuned.

    June 10, 2022

    Family Feud

    The Angelos brothers are fighting over control of the Orioles:

    John Angelos is the club’s chairman and CEO, with Peter and Lou listed on the team’s website as part of its limited partnership group. In a lawsuit filed Thursday in Baltimore County Circuit Court, Lou Angelos said John has tried to take control of their father’s estate while excluding Lou.

    “In 2018, (Peter) Angelos became disabled,” the suit said. “Shortly thereafter, John embarked on a series of steps to arrogate to himself complete control over Mr. Angelos’ assets. He accomplished this by manipulating his mother, Mrs. Georgia Angelos, who is now eighty years old, thereby bending her to his will.”

    ESPN.com

    It’s sad to see families act like this.

    May 26, 2022

    Thirteen is Really Not Enough

    I suspect right now the Cubs would be happy to find anyone who could actually pitch.

    April 11, 2022

    Lerners May Sell Nationals

    Mark Lerner, the principal owner of the Nationals, told field manager Dave Martinez that the family will explore selling the team:

    “To say the least, I was shocked,” Martinez said. “Those are big decisions that the Lerner family had to make. I’ll support than in any way possible. This doesn’t mean my relationship with the Lerner family goes away. We’re still in this. I know know they’re very committed to this organization, as am I.”

    MSN.com

    The Lerners said they would not sell. I wonder what made them change their minds? Could the new CBA make it tougher like a mid-level team like Washington to win again? Or is it just time to collect the appreciation of the value of the team?

    March 11, 2022

    The Winners

    It looks like the biggest winners in the new CBA are the pre-arbitration players. The minimum salary goes up $125,000, plus there is a $50 million bonus pool. My estimate is that there are about 400 player-seasons* this helps. So that’s $50 million in salary increase, and $50 million in bonus pool money. The bonus pool money will be a great incentive for these youngsters to play well, which could turn out to be a bit of an anti-tanking measure.

    *Lots of players get the minimum salary, but many play partial seasons.

    On the other hand, there was little for what some refer to as baseball’s middle class. These are the good players who become free agents in their early 30s. They no longer get high paying, long-term contracts. They would have been helped by shortening the path to free agency, but the union did not fight that fight.

    The owners obviously did very well. They will pay out more this season, but they have the revenue to do that. They can still control most players for parts of seven seasons, making them less valuable at free agency. They get more playoffs, which means more TV money.

    They also saw that the union is not as united as they seemed during these talks. In the past, the MLBPA did what was best for their highest paid players. For all the talk of wanting to help the youngsters, the veterans voted against this deal due to the CBT. In the end, their self interest won out. The rank and file, however, saw this as a good deal for them, and now control the union.

    March 10, 2022 March 10, 2022

    Grievous Fault

    This is not a surprise:

    I assumed the MLBPA would use this as a bargaining chip. Probably why they fought MLB on the issue in the first place.

    March 10, 2022

    The End of the Beginning

    MLB and the MLBPA decided on a new collective bargaining agreement (CBA):

    It took more than three months — and multiple deadlines for delaying the regular season — before Major League Baseball and the MLB Players Association ended their stalemate and came to terms on a new Collective Bargaining Agreement.

    ESPN.com

    The season starts April 7, and it will be a full 162 game schedule. The NL will use the designated hitter, and there will be 12 playoff teams.

    It seems to me the players failed to make real, fundamental changes to the economic structure of the game; shorter time to free agency and abritration. Younger players will get more money, but that is likely to come out of the pockets of free agents, not the owners. The players also failed to simplify rules that the owners game, especially when it comes to service time manipulation.

    I have not heard if we’ll see seven inning double headers to help make up the lost time.

    March 10, 2022

    Punting the Draft

    MLB and the MLBPA kicked the International Draft down the road so they can get back to the economic issues of the CBA.

    Under the deal reached Thursday, if a negotiated agreement on a draft is reached by July 25, direct amateur draft-pick compensation would be removed for free agents starting with the 2022-23 offseason.

    If the sides do not reach an agreement by July 25, direct amateur-draft pick compensation would remain in place.

    ESPN.com

    So the owners get what they wanted, linking the draft to free agent compensation. So if the players say yes to the draft, they are putting the interest of the free agents ahead of the interest of the amateurs.