COVID-19’s Impact on Sports Broadcasting and Salaries

It’s been just over two weeks since the last live broadcast of a professional sporting event and the effects are rippling through the world of sports business. COVID-19’s arrival and subsequent spread across the United States prompted the suspensions of the NBA’s, NHL’s and XFL’s seasons, as well as the delay to the start of the MLB season and countless other disruptions throughout sports. Much like almost every other area of the U.S. economy, sports have taken an enormous hit and while fans and organizations alike are eager to see their favorite athletes return to competition, it is uncertain as to when they will be able to safely, and lucratively, do so.

Between the timing of COVID-19’s lockdown on U.S. sporting events and the ambiguous 2-to-6 month timeframe medical experts are forecasting for a full recovery, each league has tailored its own plan in response to sudden halt of play. Below is a quick summary of just a few of the major sporting organizations’ financial and/or scheduling proposals.

NBA: After announcing that players would receive full salaries on the April 1st due date, the NBA announced earlier this week that it would be reducing the pay of 100 of the leagues’ highest-paid executives by 20% for the duration of the coronavirus crisis. Moreover, the league has extended its credit limit to $1.2 billion for added flexibility in covering its coming expenses. While there is no set plan on when play for the current season will resume, league commissioner Adam Silver has insisted that regardless of timeline, the league would prefer to salvage some portion of the season and crown a champion for the 2019-2020 season. Among the avalanche of proposals of how to “save the season,” Atlanta Hawks CEO Steve Koonin, recommended permanently pushing back the start date of the NBA season to December and concluding with the NBA Finals in late summer, given the current season would optimistically end in August or September. Moreover, Brooklyn Nets point guard Spencer Dinwiddie tweeted out an interesting idea in which the NBA season would resume with a March-Madness style tournament involving all 30 teams.

MLB: The MLB reported this week that it had reached an agreement with the MLBPA on a loose framework of financial and scheduling logistics regarding the upcoming season. Perhaps the most shocking news was the revelation that IF the season is cancelled, players would receive the same amount of service time they received the season prior. This means that players with a year remaining on their contract, such as recently-acquired outfielder Mookie Betts, will hit free agency in 2021 without ever playing a game for the Los Angeles Dodgers who traded valuable assets for his services this year. Also, in the event that the season is cancelled, the MLB made it clear that players would not be able to sue for full salaries, however all players will be receiving a $170 million advance over the next two months. Despite these insurance measures, Commissioner Rob Manfred is hopeful that the MLB resumes play this summer, while he acknowledges that a full 162-game season is likely off the table. The reported contingency plan includes 1) beginning the season once there are no bans on mass gatherings that limit the ability to play in front of fans, 2) no travel restrictions, 3) medical experts determine that games will not pose a risk to the health of teams and fans. Moreover, if/when play resumes, the MLB noted that doubleheaders, a 14-team playoff format, and a neutral, warm-weather location for a November/December World Series are all in serious consideration.

NHL: While the NBA and MLB have quickly pivoted to rescuing their seasons, the NHL has not matched their optimism nor their speed in announcing contingency options. The league has not yet united around a financial agenda, yet both the Dallas Stars President and General Manager have taken voluntary 50% pay cuts. Meanwhile, the Boston Bruins and Montreal Canadiens announced layoffs as their own responses. While many see the cancellation of the rest of the season as the most realistic scenario, others have proposed a timeline similar to that of the NBA with the season picking back up in July/August and ending in August/September. Most notably, star players Alex Ovechkin and Sidney Crosby said that they would be “OK” with skipping straight to the playoffs if and when the season is able to resume, however they acknowledged the question of fair play and keeping the integrity of the sport.

XFL: I really feel for the XFL here. Riding a strong start in its inaugural season, the decision to not only suspend but cancel its remainder must have been decisively more difficult than those of other sporting leagues. The XFL was exactly at the midway point of its season having played through five weeks of its ten week schedule (excluding a two-week playoff in April). Though the eight-team football league had been dealing with declining ratings following its initial excitement, it immediately committed to paying its players’ full salaries and returning refunds or credit to its ticket holders. The XFL also announced that it will be back for a 2021 season and has great reason to do so. Ten former XFL players have already signed contracts with NFL teams for the upcoming season with more likely to follow in the coming days.

MLS: Major League Soccer was in the midst of only the second week of its season when it made the decision to postpone its season for 30 days. As updates of the spread across the U.S. have come in, the Commissioner Don Garber pushed the deadline back to May 10th, but will likely have to do so again under the current climate. Garber, however, is adamant that when soccer returns, the MLS will play a full season’s worth of games even if it means extending the calendar of the season. While there has not been an unanimous response to salary fulfillment across the MLS, one team came under scrutiny for sending an email to its game day staff suggesting they file for unemployment while naming corporate partners who might be hiring.

BIG3…?: I was hesitant to include the Big3 in this rundown of major sporting organizations, however its response to the coronavirus crisis may just elevate its status to that of the leagues listed above. For those who are not familiar with the Big3, it is a 3-on-3 basketball league composed of former NBA and college players such as Amar’e Stoudemire and Joe Johnson. The games are played half-court style with rule oddities that differentiate it from the NBA such as the addition of a 4-point shot and first team to score 60 points as the winner. As for the coronavirus’ impact on the BIG3, originally games were supposed to be played around the country in Memphis, New York and more. However, BIG3 co-founder Ice Cube announced yesterday that the organization will be partnering with the producers of reality TV show “Big Brother” in efforts to air a basketball tournament-reality TV show hybrid to fill the significant void in the sports world. It was reported that the tournament will feature 16-22 players, who be previously tested for COVID-19 and if selected, will be quarantined in a house together for the duration of the season with anyone who breaks quarantine being kicked from the house. It was also reported that some of those selected may even in former top women’s basketball players.

The idea is that the three-person teams would shuffle teams each round and once an individual player accumulates three losses they would be eliminated from contention. Then, the final three players would win cash prizes with the top prize being at least seven figures. The goal is to air the tournament starting in May and given the current sport’s climate, or lack thereof, the BIG3 will surely see a large opportunity to scoop up hungry sports fans across the country craving any form of live competition. There is no word yet on whether or not these fans will be able to bet on these contests, however given the nationwide craving to slowly restart the economy, it wouldn’t a surprise to see Las Vegas announce the lines once the details of the BIG3’s proposal are ironed out. In any event, every other aforementioned league is looking at June start/resume dates in their most optimistic scenarios, so at the very least the BIG3 has at least a month to show us all what it has to offer, and hopefully hold us sports fans over until our favorite teams are back in action.

Ex-MLB Pitcher files lawsuit against Astros over Sign-Stealing Scandal

Spring is here and baseball is finally returning from what has been a tedious offseason for just about everyone involved. Of course, at the heart of the frustration lies the now-infamous sign-stealing scandal that undoubtedly gave the Houston Astros a disproportionate competitive advantage en route to their 2017 World Series championship. However, while fans, players and front office execs alike are all justifiably upset with the Astros’ cheating, one former pitcher has particularly good reason to not only be frustrated with the ex-champions, but also take them to court.

On August 4th, 2017, Mike Bolsinger of the Toronto Blue Jays entered the game in the 4th inning to relieve as they were trailing the Astros 7-2. With a runner on and two outs, Bolsinger’s outcomes are as follows: walk, three-run home run, double, walk, single, walk, warning-track fly out. As a result of the horrendous outing, his ERA ballooned from 5.49 to 6.31 (league average was 4.36 that year) while his WHIP went from 1.66 to 1.81 (avg. was 1.33) and the Blue Jays promptly designated him for assignment after what would prove to be his final game in the big leagues since.

Given his stats —and if we’re being honest the eye-test too— it is clear Bolsinger certainly was never a Cy Young candidate by any means, yet the degree to which he gets teed-off seems oddly high. You can watch the entire appearance here, but the MLB’s investigation confirms part of what we see unfold in the clip: the Houston batters knew what pitches would be delivered before they were even thrown and allegedly used the trash-can-banging system on 12 of the 29 pitches Bolsinger threw. So, the question becomes, “If the Astros had not stolen signs, would the results of Bolsinger’s appearance be different in a way that would have ‘saved’ his job?”

The official way in which this civil suit is being framed is whether or not the Astros  engaged in unfair business practices and negligence via a “duplicitous and tortious scheme of sign-stealing.” Though initially filed toward the Astros organization on February 10th, the original grievance contained Doe defendants, essentially defendants to-be-named later, which reportedly likely include Astros Owner Jim Crane.

The significance of his involvement in this lawsuit stems from Commissioner Rob Manfred’s summary of Crane’s role in the scandal. Manfred wrote, “Jim Crane was unaware of any of the violations of MLB rules by his club,” plainly exonerating him. However, after the year-long suspensions and subsequent firings of general manager Jeff Lunhow and manager A.J. Hinch, Crane is the last man standing among a splintered front office and has been able to keep himself isolated from any sanctions. While it remains to be seen how directly the lawsuit aims to implicate Crane, it is possible that more details about his understanding —or lack thereof— of the cheating are made public which would inevitably drag out the controversy even further.

Odds are that the lawsuit will never reach trial, however if it did how would it play out? The only thing close to a baseball crime of this magnitude traces back to 1919 when eight members of the Chicago White Sox were accused of intentionally losing the World Series in exchange for a share of the profits from a gambling syndicate. So, while there isn’t a true precedent, a couple factors will outline the way the case proceeds.

First, grievances dealing with a player’s salary are covered by a labor law preemption, meaning that the Collective Bargaining Agreement between the MLB and MLBPA will govern any bargain between the feuding parties. To that end, the Astros can appeal the court to dismiss the lawsuit so that Bolsinger must arbitrate. There are several considerations that follow and make this aspect of the proceeding much more complex, however SportsIllustrated has covered these nuances in depth here for those who want to go a step further.

More interesting, however, is the question of whether or not the “Astros game” truly caused the derailing of Bolsinger’s career. As his aforementioned stats show, 2017 was already shaping up to be a make-or-break season for the 6’1″ righty as he was carrying a mediocre 6.83 ERA from the year prior into his first (and only) season with the Blue Jays. Yet, despite forfeiting 21 earned runs in just 27.2 innings in that 2016 season, 2015 provided a lot of hope for Bolsinger’s future in the league when he started 21 games, tossing 109 innings to the tune of a cool 3.62 ERA.

So, did Bolsinger, a 10th-round pick who never cracked any top-prospect lists, truly have a potential future that was unfairly derailed by Houston’s cheating? Or was his 2015 season just a fluke and his departure from the big leagues always inevitable? The most challenging aspect of all of this is that this outing against the Astros proved to be his final appearance in the MLB, so it is easy to hypothesize the “what ifs” that could have changed the course of history. Yet, I’m inclined to think that Bolsinger’s career would have been effectively over regardless of how bad a bashing the Astros gave him on that August 4th game.

Between his uninspiring rise from prospect obscurity to what seemed to be a failed starter-turned-reliever experiment, Bolsinger had the profile of someone destined to be in the MLB just for a cup of coffee while teams try to figure out if he has the “it” needed to stay. Toronto took a flier on him and despite returning to Triple A and posting an electric 1.70 ERA over 47.2 innings, its clear that the Blue Jays and the rest of the league were ready to move on from him.

These considerations are why this lawsuit figures to be so complex and monumental. Bolsinger’s attorney, Ben Meiselas of LA-based Geragos & Geragos, has a steep case to make, but successfully represented Colin Kaepernick in his collusion grievance against the NFL. The ramifications of any settlement that may be reached are far-reaching traveling all the way up to the office of the Astros owner and could prompt more players to follow suit (no pun intended). In any case, the dark cloud of Houston’s sign stealing scandal that looms over baseball won’t be going away any time soon.

The Curious Case of the Slow Offseason

 

eric-hosmer

It is now Christmas day and many of the top free agents are still available including names such as Yu Darvish, Eric Hosmer and J.D. Martinez. The sluggish pace of the market is a result of a few factors, the first couple being Shohei Otani’s posting and shortstop new owner Derek Jeter’s dismantling of the Miami Marlins. With the majority of the MLB contending for the services of Otani and/or Giancarlo Stanton, free agents have had to be patient for these dominos to fall before teams turned their attention to their likeness. However, now that these two stars have found new homes with the Angels and Yankees respectively, one would imagine that the market would have picked up pace. Instead, negotiations have continued at a slow clip, with the only notable signings coming in the form of SS Zack Cosart (Angels, 3 years/$38 million) and 1B Carlos Santana (Phillies, 3 years/$60 million).

For comparison, last year at this time, the majority of major free agents had already been signed, but teams are being more patient this time around opting to build their teams through trades and top prospects, while they wait out the demands of players’ agents. This can largely be attributed to last year’s Collective Bargaining Agreement which has discouraged larger market teams from going over the luxury tax line of $197 million by increasing the penalty for consecutive years of spending overage. This modification was put in place with the intention of making the league more competitive, which makes sense, because it is admittedly hard for a team like the Milwaukee Brewers to be considered on the same playing field with a payroll of $63 million when going up against the LA Dodgers with a payroll exceeding $240 million. In turn, these big market teams are curbing their traditional heavy spending methods in an effort to get beneath that 197 million-dollar threshold – and it’s working. Despite six teams (Dodgers, Yankees, Red Sox, Tigers, Cubs, and Giants) paying the luxury tax last year, all but the Red Sox seem positioned to avoid the penalty in 2018.

So what does that mean for this free agent class? Well, for starters, there is less money to go around and that is especially bad news when two of the top free agent hitters, J.D. Martinez and Eric Hosmer, have Scott Boras as their agent. As his reputation affirms, Boras is seeking multi-year deals worth big money for his prized players – seven years and $200 million plus – to be exact. He has dubbed J.D. Martinez the “King Kong of Slug” and Eric Hosmer as the elite talent that will take a team to “Playoffville.” While Boras’ demands are likely farfetched (especially in this year’s market), it is not hard to imagine that he will produce the offseason’s largest contracts in these two players. What will make his job harder this year however, is the new CBA, which is limiting teams’ willingness to get into bidding wars – the very thing that allows him to reel in the crazy contracts his clients dream of.

The reality is that Martinez and Hosmer will likely sign for far less than the 7 year, 200 million dollar benchmark that Boras has established, but even when they do, what’s next for the rest of the free agent crop? The usual suspects that can be counted on to make a least one major splash each year are scrambling to get under the $197 million threshold. Is someone like 3B Mike Moustakas, who is coming off a productive .272/38-homer year, supposed to get a 100 million dollar contract from the Tampa Bay Rays? Or the Oakland Athletics to sign Jake Arietta to a multi-year deal? These are good players that will find new homes one way or another, but as the offseason drags into January they are going to have to temper their expectations as the reality of a new MLB market sets in.

As the calendar flips to 2018, one of either Boras or the teams with which he’s negotiating will have to blink at some point and contracts for the Hosmer/Martinez slugging duo will get done. After a couple months of waiting, this will finally set the market for the offseason and for better or worse, determine the earning capacities of remaining free agents. However, until then, the rest of the league will be waiting and watching as teams and agents alike adapt to the complexities that the new CBA has introduced to the 2017-2018 offseason.

Spring Training Battles: Bullpen Pt. 2

Bullpen Picstitch

If you missed part 1 click here: http://orderonthecourtsports.com/2014/03/03/spring-training-battles-bullpen-pt-1/

Returners:

Andrew Miller: As mentioned above, Miller was out for the season after needing surgery on his foot. He is a big, powerful lefty out of the bullpen and posted an improved 2.64 ERA from his prior two years with Boston in 30.2 innings before he was sidelined. Contract-wise, Miller will receive roughly $2 million this year in his final year before free agency. Chances are he will stick to the roster as he has developed into a reliable 7th inning reliever and the Red Sox are looking to see what he can do coming off of his injury.

Craig Breslow: Another lefty out of the bullpen, Breslow put it all together last putting up a 1.81 ERA and making 61 appearances. He raised his stock even more in the postseason, in which he allowed zero earned runs in his first eight appearances and  become the most reliable late inning reliever. Currently, Breslow is in the last year of a two year contract he signed last winter that will pay him around $3 million anually. He should have a spot secured as an a 7th or 8th inning reliever in the bullpen.

Junichi Tazawa: He put a decent season last year, but left the ball in the strike zone a little too much gave up 70 hits in only 68 innings. The one positive in this is he only granted 12 walks, but still allowed more base runners than most managers would like. He also had a tendency when he  came in with men on base to let up a hit before retiring the next batters. He is now in his first arbitration year and will get paid slightly above $1 million this year. He should survive the roster cuts, but he will face serious competition as a late inning reliever.

Acquisitions:

Edward Mujica: The Red Sox signed Mujica, who for most of the season was the closer for the St. Louis Cardinals to a two year contract worth $9 million, but they are paying him for what he did in the first five months of the season in which he posted a 1.73 ERA and collected 35 saves. He seemed to lose it in the month of September allowing 9 runs in 7 innings and lost his closing job. He only appeared once in the postseason, against the Dodgers in the NCLS and allowed a home run in his one inning. The Red Sox are relying on Mujica going back to mid-season self in which he was one of the best closers. It seems likely that Mujica will pitch out of a set-up role in the eight inning and could take over as closer if Uehara misses time to injury.

Burke Badenhop: Outside of Jonathan Herrera, Badenhop has probably been the most overlooked acquisition this offseason. The Red Sox swapped minor league pitcher Luis Ortega for Badenhop with the Brewers early in the winter to add to their bullpen depth. This transaction didn’t gain too much attention because the Red Sox traded someone most hadn’t heard of and received a reliever from the Brewers, that even fewer people had heard of. Ultimately, it is not clear what role Badenhop could play in the Red Sox bullpen, but he was a very reliable middle reliever pitching 62.1 innings in 63 appearances to the tune of a 3.47 ERA. He will earn roughly $2 million avoiding arbitration in his final year before free agency. Whether or not he makes the roster, will largely depend on his performance in Spring Training unlike the previous relievers mentioned who are likely to have a spot saved for them.

Chris Capuano: After the announcement was made that Ryan Dempster would not pitch in 2014, the Red Sox went out and signed Chris Capuano for a one year $2.5 million that can reach as high as $5 million with incentives. This signing is part of a childhood dream for Capuano, who grew up in West Springfield rooting for the Red Sox. He made 20 starts for the Los Angeles Dodgers last year and had an ERA of 4.26. He figures to fill a swingman role in the bullpen, going multiple innings if needed and getting occasional starts in case a regular starter is injured or has to skip a start. Capuano will see a lot of innings this year whether filling in for a starter or coming out of the bullpen.

Rookies:

Brandon Workman: The Red Sox have two rookies in camp that have a legitimate shot to push out one of the previously named relievers for a spot in the bullpen. One of those rookies is right hander Brandon Workman. He was overlooked last year as a pitching prospect due to the abundance of other young arms that include Allen Webster, Anthony Ranaudo, and Matt Barnes. Workman is still projected to be a starter in his future, but he is more than willing to pitch out of the bullpen if it would earn him a roster spot. He had a few stints at the professional level last year and despite struggling heavily in September with a 7.00 ERA, he was put on the postseason roster where he shined. In 8.2 playoff innings, he did not allow a single earned run receiving some well deserved popularity from the fans. Workman showed that he had the capability to pitch at the major league level, the only question is will it be enough to earn him a roster spot out of Spring Training. Chances are that the Red Sox leave him at AAA Pawtucket to start the year, but he will be the first man up if an injury occurs.

Drake Britton: The lefty quickly turned his season around, after getting arrested for a DUI in Spring Training of 2013. Britton made 17 starts between AA and AAA posting a 3.77 ERA, which was good enough to get the call to the major league team in July. He didn’t allow a run in his first 9 innings and finished the year with a 3.86 ERA. Although he is a starter by trade, the Red Sox seem to profile Britton as a reliever given how successful he was in this role last year. Britton is considered to be a longshot to make the roster this year, especially because of the new presence of Chris Capuano who is in the same role as Britton ideally would fill. This makes it very likely that Britton will start the year in Pawtucket and could potentially make a return to the major league roster at some point in 2014.

In recap, six relievers seem to have a role already geared towards him. Koji Uehara– closer, Edward Mujica– set up man, Craig Breslow– set up man, Junichi Tazawa– middle reliever, Andrew Miller– middle reliever, Chris Capuano– long reliever/spot starter

There will be fierce competition for that last bullpen spot between Burke Badenhop, Brandon Workman, and Drake Britton, it’s up to each to prove in Spring Training that they have what it takes to get that last roster spot, but who will it go to?