Tag: MLB

2020 in Review, 2021 Preview: M&A

Having (finally) turned the page to 2021, today let’s take a look back at some of the biggest stories in sports law from the past year. 2020 was set to be a consequential year in sports even before the arrival of COVID-19. However, the pandemic only heightened the importance of a year that witnessed both blockbuster mergers and widespread layoffs in sports business, overdue support for athletes’ expression in social justice movements, and on-the-fly adjustments of how sports are watched and played.

Much of 2020’s chaos that rearranged the sports world will continue to have significant commercial impacts on the industry. Below are some of the fascinating stories that last year provided, and what we might expect 2021 to bring.

What happened:
Penn-Barstool Partnership
Perhaps the most surprising deal transpired at the beginning of the year with Penn National Gaming turning heads during Super Bowl week. The company announced that it had purchased a 36% stake in Barstool Sports for $163 million, valuing the Boston-based sports media group at $450 million. The deal was widely-regarded as a win-win as the oft-in-controversy Barstool gained the legitimacy and platform of a media superpower, while Penn acquired easy access to an ideal market audience for the rollout of a much-anticipated sports betting division. The agreement came at a time with sports betting experiencing skyrocketing growth, and in the court of public opinion, gambling has gone from taboo to tantalizing as more and more legislators rush to legalize the industry in their own states. However, the Penn/Barstool combo faces an uphill battle getting their share of the market as sports betting is already dominated by established operators in FanDuel, Draftkings, William Hill, and others.

Cohen Gets the Green Light
Steve Cohen, a hedge fund manager worth roughly $14 billion, gave Mets fans everywhere something to be excited about when he purchased the team for a MLB-record $2.475 billion this past fall. However, the acquisition did not come without significant hurdles. Back in February, he and the longtime Wilpon family ownership had reportedly agreed to a deal that would have transferred 80% of the Mets to Cohen, however talks suddenly fell through and the agreement was pronounced dead. The team went back on the market and Cohen – in his second effort – faced a competitive bid from longtime Yankees superstar Alex Rodriguez and entertainer-fianceé Jennifer Lopez. Then, when it became clear that Cohen was willing to far-outspend the competition, rumors swirled that New York Mayor Bill de Blasio was “trying to kill” any sale of the Mets to Cohen, reportedly stemming from the fact that Cohen’s former company, SAC Capital Partners, pleaded guilty in a 2014 insider trading case, which cost the firm $1.8 billion in fines. Despite these obstacles, Cohen’s purchase of a 95% stake in the Mets was approved in October. So, after years of being run like a mid-market team, the New York Mets are already seeing dividends now that Cohen, a longtime Mets fan himself, is at the helm. Following promises to spend big on the Mets, Cohen has quite literally put his money where his mouth is, already adding more than $100 million to the team’s payroll through various key moves. Since 2010 (and excluding last year’s pandemic-adjusted season), the Mets have had an average payroll of roughly $124 million. With the start of the MLB season still more than two months away and potentially more moves to be made, the Mets’ payroll already exceeds $160 million and only figures to increase. According to Forbes, the Mets are the 5th most valuable MLB team and the 41st most valuable team globally.

Spotify Snags Simmons
Spotify continued its run of podcast acquisitions with another big name buy. Having already shelled out $400 million for Gimlet Media, Anchor FM, and Parcast, Spotify reportedly spent more than $196 million to land Bill Simmons’ The Ringer in an effort to grow its sports vertical. In Spotify’s words, The Ringer, launched by Simmons in 2016, is a “website, podcast network, and video production house creating an innovative blend of sports, pop culture, politics, and tech content.” According to Statista, The Bill Simmons Podcast, part of The Ringer’s robust podcasting lineup, was the 5th highest earning podcast in 2019 bringing in over $7 million. While the growth of podcasting is hard to pinpoint, the following statistics paint a picture of its vast potential: in 2020, 55% of Americans had ever listened to a podcast, 37% of Americans twelve or older listen to one monthly, and podcasts accounted for 19% of all spoken-word audio listening in the U.S., compared to 2017 when these numbers were 40%, 24% and 15% respectively.

What to look for:
NFL to hit $100 billion?
With most NFL broadcasting rights agreements set to expire in 2022, the league will sign a new contract this year with many expecting that it will be a 10 year deal that could “far exceed” $100 billion in total value – and it’s easy to see why. Out of the 50 most-viewed TV Broadcasts of 2020, the NFL dominated claiming 33 of the largest audiences, including Super Bowl LIV, which reeled in one-hundred million viewers, unsurprisingly making it the most-watched broadcast last year – for the 28th year in a row. While core aspects of the NFL’s current agreement figure to remain intact, a few key games are expected to change hands, even including America’s most popular program. Nothing is set in stone, but rumors are that ABC and ESPN will be added to the Super Bowl rotation and ESPN will receive more flexibility in its Monday Night Football (MNF) slate to ensure the best-possible matchups. Perhaps more intriguing, the NFL is reportedly considering offering ABC, ESPN, CBS, and Fox two Super Bowl broadcasts each, and auctioning off the final two at a later date. The new broadcasting agreement will likely witness one of Amazon, ESPN+, Peacock or Apple take over the Sunday Ticket package given that DirecTV seems poorly-positioned to continue the deal. Also, Amazon may become the exclusive provider of Thursday Night Football with Fox reportedly looking to move on from the package. NBCUniversal is focusing on retaining the most-watched prime-time TV show for the last nine years in Sunday Night Football. Finally, a few notes on current pricing and revenue: rates for Sunday afternoon games have been $1 billion annually, but may jump to $2 billion; ESPN has paid $2 billion for MNF, but may need $3 billion to retain the package; Sunday Ticket is priced at roughly $1.5 billion annually, but will likely be subject to a bidding war which will drive up the cost; the NFL’s annual revenue from its media rights is currently around $7.5 billion and could double to almost $15 billion. In any event, the NFL’s much-anticipated TV deal will be something to look out for as it will undoubtedly shape the broadcasting market for the next decade.

XFL game-planning for 2022
Among all the losses experienced due to the pandemic, it’s hard to argue that any sports entity suffered more than the XFL, whose debut began with a very promising start in February, only to be stopped short the next month and later, subjected to bankruptcy. Thanks to careful planning, significant funding, and an impressive marketing effort, the XFL seemed well-positioned to erase the doubts stemming from its 2001 failure and establish itself as a legitimate and profitable “minor league” to the NFL. Early returns on the XFL proved as much: the league averaged 1.9 million viewers and was projected to hit $46 million in gross revenue for the unfinished 10-game season, exceeding internal expectations. Of course – consistent with the theme – the pandemic plunged the XFL and its investors into financial ruin, forcing CEO of WWE, Vince McMahon, to sell the team to actor and businessman Dwayne “The Rock” Johnson for just $15 million. Citing the needs to restructure the organization and have fans back in seats, the XFL has no plans for a 2021 season, however expects to return in spring 2022. Accordingly, many expect Johnson, alongside business partners Dany Garcia and Gerry Cardinale, to be active in securing investments to position the XFL for a strong – and permanent – revival next year.

Sportradar on the move
In a year that witnessed the continued growth and popularity of sports betting, Sportradar, unbeknownst to most, finds itself poised for a major move. Sportradar is an international, Switzerland-based company that collects and analyzes sports data, providing it to bookmakers, sports federations, and media companies, including the MLB, NBA, NFL, NHL, William Hill, Bet365, and many more. The company employs more than 2,000 people over 30 locations across the globe and boasts Michael Jordan and Mark Cuban among its list of investors. So, why is Sportradar making the news now? Well, after receiving a B+ credit rating from Fitch Ratings, it was revealed that the sports betting powerhouse has been raising $505 million to finance a potential acquisition, reportedly with a specific M&A entity in mind. Though the identity of this target remains unknown, some have speculated that it could pursue another sports betting platform, while others predict Sportradar may look for a casino platform. In any event, most seem to agree that at some point this year Sportradar will look to go public, however disagree whether it will do so through a traditional IPO or a SPAC, the latter of which would allow the company to reach the public roughly two-to-four months faster than using the former. Regardless, it is clear that Sportradar has big ambitions for 2021. The company just appointed a former CEO of Fiserv Inc., Jeff Yabuki, to chairman of the firm’s board of directors and while its plans are still in the dark, many expect Sportradar to make lots of noise early on in 2021.

Oliver GreenLeave a comment

Pricey Pandemic Insurance Policy Sets Wimbledon Up For $141 Million Payout

While the rest of the sports world is sustaining huge losses, one organization is well positioned to navigate through the global recession. The AELTC (All English Lawn Tennis & Croquet Club) is the association responsible for hosting and operating the prestigious Wimbledon Championships that were set to take place this June. And while COVID-19 is causing most leagues to scramble to find any salvageable solutions, Wimbledon has had the “luxury” of simply cancelling the tournament, and recouping $141 million in the process.

Despite the fact that Wimbledon was projected to generate more than $300 million in revenue this year, the roughly $150 million loss they will see as a result of the pandemic pales in comparison to those of other major leagues and events. Forbes estimated that the NCAA will see damages of $1 billion, the NBA – $1.2 billion, and the MLB (whose season had not yet even started) – as much as $2 billion. These numbers are all based around an assumption that the leagues will resume sometime over the summer, but given the uncertainty it is possible — even likely — that the true figures will be much higher.

So, how exactly did Wimbledon “ace” its handling of the coronavirus chaos? The story reportedly traces back to 2003, the year in which SARS rattled the world and brought pandemic preparedness to the forefront of international dialogue. Though SARS didn’t uproot the sports world like COVID-19 is doing now, the AELTC understood the potential of a global spread and updated its insurance policy to cover an infectious disease clause. That amendment didn’t come cheap however; it cost the AELTC a whopping $2 million per year to protect its premier event from what most others considered a once-in-a-lifetime fluke that wouldn’t repeat itself.

Until it did.

17 years and $34 million later, AELTC is seeing the worst case scenario (in the sports world, at least) unfold, but its directors can rest easy knowing Wimbledon is covered and well-poised for a 2021 return. The policy is exactly why AELTC didn’t need to postpone or reschedule Wimbledon, in fact, the London-based club reportedly had to cancel by a certain date in order to recoup the insurance premium.

Meanwhile, other leagues and major events are trying to brainstorm any possibility to soften the financial blow each one is facing. Even if the NBA returns late in the summer and skips straight to playoffs, or the MLB’s “quarantine league” comes to fruition, these events will undoubtedly be held without crowds and the leagues will still suffer substantially this year. So, a question many are likely wondering is: why didn’t these organizations have any protections on their events like the AELTC did with Wimbledon? The short answer is that they actually did, just to a limited extent.

Most contracts include force majeure clauses, which excuses certain contractual obligations due to a “superior force”. These forces consist of circumstances that are largely out of both parties’ control such as natural disasters, acts of terrorism or say, a global pandemic like the novel coronavirus. However, while sporting organizations can invoke the force majeure clause, the primary benefit in doing so would derive from these organizations’ ability to withhold pay for missed games.

Accordingly, this contract language (if enforced) only really protects these companies from the costs to their thousands of employees, rather than safeguarding them from losses to the revenue, highlighting the true value of AELTC’s insurance. However, at this point, the money these leagues could save by invoking force majeure is far outweighed by the revenue that any semblance of a season would drive, even if it means fan-less events. The reality is, if leagues are going to see any sort of monetary light at the end of this coronavirus tunnel, the government will likely be the one shining it.

In a summary published by lawyers from White & Case, they believe that governments will be willing to provide financial support to prop up the sports industry as it looks to restart itself. Given both the economic and social impact of sports, the government has a vested interest in doing so, however the report warns to expect some form of lengthy litigation in leagues’ pursuit of federal compensation. In any event, whatever kickback AELTC receives down the line will be icing on Wimbledon’s well-insured cake.

Oliver Green1 Comment

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.

Oliver Green1 Comment

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.

Oliver Green

Jacoby Ellsbury & MLBPA vs. New York Yankees

This week the MLB Players’ Association filed a grievance against the New York Yankees on behalf of the team’s former center fielder Jacoby Ellsbury in an attempt to recoup the remaining $26 million that he argues is owed to him. After winning the World Series with the Red Sox in 2013, Ellsbury signed a seven year, $153 million contract with the Yankees, however went on to miss a staggering 452 games between 2014-2019. For reference, in that same time frame the Yankees played 972 games (excluding playoffs), meaning the speedy outfielder appeared in just over 53% of those contests. If that wasn’t already hard enough to stomach, according to Fangraphs, Ellsbury registered a wRC+ (explanation below)* of 96 as a New York Yankee, so he was roughly 4% worse than league average.

While it is impossible to understate how disappointing Ellsbury’s tenure in the Big Apple was, his contract, like the vast majority of MLB contracts, was fully guaranteed therefore the $153 million was never contingent upon performance or even playing for that matter. However, the Yankees allege that the former silver slugger violated his contract by receiving unauthorized medical treatment which allowed them to convert his contract to “non-guaranteed” and then subsequently release him.

According to the Yankees, the 36-year-old was treated for an injury by Dr. Viktor Bouquette in Atlanta without the team’s consent, yet Ellsbury argues that the treatment was for a non-baseball-related injury, which does not require permission. The CBA essentially states that as long as the “Non-Work-Related Injury does not affect the Player’s ability to provide services,” then the player is exempt from disclosing treatment procedures. However, seeing as Ellsbury had not played a game since the end of 2017, which coincidentally is around the same time it is alleged that he started seeing Dr. Bouquette, it will be tough for the MLBPA to prove that there is no link between the two.

Though Ellsbury’s medical records are protected under medical privacy, if there is truly no causal connection between his NWR injury and the right oblique strain that was the first of his slew of 2018 injuries, then he and the MLBPA could and should release those medicals to prove that they are wholly unrelated.

There is a lot at stake for both sides in this case that will be heard by arbitrator Mark Irvings, who will be making a significant ruling next month in another dispute between player and club. For the Yankees, after the historic Gerrit Cole signing, their 2020 payroll ballooned to $243 million, which carries a significant luxury tax. The tax threshold (number at which team’s must pay extra for every dollar over) for next season is $208 million. The Yankees will pay 30% on ever dollar between $208 million and $228 million, 42% between $228-$248 million, and 75% beyond $248 million. So, the Yankees would stand to gain substantially if they lower that figure from $243 million, which would represent $12.3 million in taxes, to $217 million, which would only tax them $2.7 million.

As for Ellsbury, he is still rehabbing but is looking more like a liability than an asset so this $26 million could represent the last paycheck of his player career. However, for the MLBPA it goes a bit deeper as this case could set a meaningful precedent. It brings to mind a 2010 dispute between Carlos Beltran and the New York Mets over a similar issue that never reached litigation. In any case, the verdict in this conflict between the MLBPA and the Yankees could either be the final insult for foolish free-agent spenders or a sign to those same regretful investors that there are in fact legal ways to wriggle their way out of those abominable contracts.

*wRC+ means weighted Runs Created adjusted. This statistic is meant take external factors (such as ballpark or era) into account to paint a picture of a player’s overall value to any given MLB team. 100 represents league average, so a player with a wRC+ of 150 means that player is 50% better than league average and vice versa. wRC+ is widely regarded as one of the best indicators of a player’s true value.

Oliver GreenLeave a comment

NBA looks internationally with G League Franchise in Mexico City

The NBA just showed everyone why it is the most dynamic league in sports with the announcement of its landmark partnership with the Capitanes, the first professional G League team outside of the U.S. and Canada. Between the NBA, NFL and MLB, all three associations have had an eye towards international expansion and have played games in Mexico, England, Japan, China and Australia in recent years. However, the NBA has become the first to officially open a franchise outside of the U.S.-Canadian markets. The Capitanes were established in 2016 and currently play in Mexico’s own professional basketball league, la Liga Nacional de Baloncesto Profesional, however will debut in the G League in the 2020-2021 season for an initial term of 5 years.

The possibilities with this move are endless and really allows the NBA to become creative in rethinking the G League and minor league basketball as a whole. For one, the Capitanes will be playing at the Gimnasio Juan de la Barrera in Mexico City which represents the largest media market in North America. The NBA can test this market for its viability for professional basketball, leaving the door open to a potential NBA league team in the future and could even become a two-team city like New York or Los Angeles down the road.

As evidence, for the fourth season in a row, Mexico City has been the host to two regular season games and saw the Mavericks and Pistons play this week in an event that underscored the global nature of NBA. Before the game, Luka Doncic, a Slovenian 20-year old who played for Real Madrid, addressed a crowd in fluent Spanish while representing a team from Texas. You can watch the clip here and instantly recognize the opportunity that exists for the NBA in Mexico.

A large part of the NBA’s appeal is its diversity, both domestically and internationally. It has been praised as the “industry leader among men’s sports for racial and gender hiring practices” by TIDES, the authority on diversity and ethics in sports, while also boasting players from countries around the world such as superstars Giannis Antetokounmpo from Greece and Joel Embiid from Cameroon as well as retirees like Yao Ming of China and Spain’s Pau Gasol. Interestingly enough, though Hispanic viewers represent 11% of the NBA viewership, outside of Dominican-born Al Horford and Argentina’s Manu Ginobli, Latin America is not known for sending much talent to the NBA. However, the league’s expansion to Mexico could inspire a generation of NBA hopefuls and the next Latin American-born star might be the spark that lights up basketball culture across the region.

This is exactly why a G League in Mexico now opens up so many possibilities for the NBA in the future. As it stands now, two of the NBA’s 30 teams, the Nuggets and Trailblazers, do not have a G League affiliate and instead send their developmental prospects to play on other G League teams. This is far from ideal given the lack of control they have over this development process, however the lack of uniformity could also allow the NBA to pivot completely from how G League teams are conceptualized.

Let’s get crazy for a second and imagine that the NBA adopts a structure similar to that of professional soccer in Spain and made tiers of teams that would be promoted and demoted based on season results. Thus, the NBA would represent tier 1, the G League would represent tier 2, and let’s say Mexico’s la Liga Nacional de Baloncesto Profesional (LNBP) would represent tier 3. The NBA could then introduce a tournament toward the end of the regular season for the bottom four teams and demote the loser of the bracket to tier 2, meanwhile champion of the G League would move up and take the spot of that losing team. The same would happen the last place team of the G League and the champion of the LNBP.

As wild as it is, it would completely take the incentive away from tanking, while adding another “playoffs” of sorts that avid NBA fans would tune in for. Moreover, the ability to reimagine G League teams lowers the barrier to entry for other G league teams that formerly would have needed to be an affiliate of an NBA team. It also allows the opportunity for a team like the Capitanes to have a chance to become an NBA team by winning the G League title and affords more market freedom to both the players and teams.  Again, the possibilities are endless but at the very least, ensure that the future of professional basketball is in good hands with Adam Silver’s focus on the international stage.

Quick note: Sending thoughts and prayers out to former NBA commissioner David Stern who underwent emergency surgery for a brain hemorrhage he suffered this week. Stern served as commissioner for 30 years and was instrumental in expanding the NBA from 10 franchises to 30 and broadening the NBA to a more global audience.

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