Author: Marc Normandin

Round-up: Diamond bankruptcy, WBC pitchers, cheap owners

Diamond finally declares bankruptcy, Team USA is struggling with pitching restrictions, and Bomani Jones has something to say to MLB’s cheap owners.

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We’ve got a few things to catch up on, so let’s hit the ground running.

Diamond declares bankruptcy

We knew it was going to happen eventually, but Diamond, the owners of Bally Broadcasting, which serves as the regional broadcasting network for a not insignificant number of MLB’s teams, declared bankruptcy. That sounds scary on the surface, but as I wrote about a few weeks back, it’s more of a sign of things to come than it is a notice of an interruption of how you consume baseball in 2023. Here’s Sportico’s Brendan Coffey with an explanation and quotes:

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The Yankees made a ton of money just from tickets in 2022

The Yankees have bills to pay, but they’re raking in way more than they’re spending from the looks of just their ticket revenue.

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The gate for a baseball team isn’t just tickets: there’s also parking and concessions and local merchandise to account for. And yet, just from tickets, the 2022 Yankees raked in $345 million. That’s not a rumor, it’s from a market disclosure the Yankees had to send to the state of New York, which owns Yankee Stadium thanks to the whole publicly funded thing. Via Sportico:

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There’s work to do to fix arbitration

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A few weeks back, I wrote about how arbitration shouldn’t go anywhere, despite MLB’s attempts to get rid of the system they’ve hated since its inception in the days of Marvin Miller. Hell, the fact MLB wants to get rid of arbitration remains the best proof that the system is worth salvaging. Arbitration certainly isn’t a perfect tool these days, though, as teams figure out how to manipulate hearings in a way that earns them victories. While things on the position player and starting pitcher side are a little more evenly split in terms of which side, teams or player, wins out, as Malachi Hayes wrote for Baseball Prospectus, relievers are doomed.

Read the entire feature, but here’s a snippet of the findings:

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MLB hasn’t given up on restricting minor-league pay yet

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If you needed a reminder that Major League Baseball is disingenuous in their public desire to make life better for minor-league players, you only have to check the news to find it. They might have chosen to voluntarily recognize that the players had unionized and sought representation under the Players Association, and they have certainly spoken on how they gave the players raises across the board and are now paying for their housing, look at us, aren’t we just the greatest? But that’s just the surface level stuff: underneath, they’re the same old MLB.

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MLB is trying to shrink the minors again

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We hadn’t heard a peep about the nature of the minor-league collective bargaining between Major League Baseball and the Players Association despite it going on for months now, but we finally got a tiny morsel to reflect on. Tony Clark spoke on various matters around the league, which Evan Drellich published at The Athletic, and it’s all worth looking at. The newest info in there, though, pertains to the ongoing bargaining, and an ask MLB is making that the union isn’t about to budge on:

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Thoughts on MLB’s economic reform committee

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Whispers turned to anonymous leaks, which became Dick Monfort and Rob Manfred publicly complaining/shaming, and then an “economic reform committee” was unveiled by MLB. All of this was predictable, and because of that, it’s not too difficulty to suss out what it all means.

MLB is using the recent issues of Diamond Sports Group — which runs the Bally regional sports networks that Sinclair purchased from FOX after Disney grabbed everything besides those RSNs and the fascist cable news network portion of the company in their quest to own every IP in existence — as an excuse for the existence of this economic reform committee, and I’m sure that’s true to a degree: the owners will all be in some uncharted waters soon, and rather than end up in a situation like Bud Selig arguing with George Steinbrenner about revenue-sharing for years, or any number of 1980s commissioners trying to explain how cable was good for the owners’ bank accounts, actually, Manfred and Co. are trying to get ahead of the discussions about this brave new world.

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Arbitration shouldn’t go anywhere

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The greatest evidence that exists in favor of arbitration is that Major League Baseball wants to do away with it. It’s not a perfect system, no, given the arbitrators themselves are inconsistent, and MLB spends an awful lot of time coaching up its teams on specific talking points so that they can defend their positions, but in aggregate, there is a reason that the Players Association is in favor of keeping an arbitration system in place, while the league would love very much to be done with it.

Even in an offseason like this one, where the players were trounced in arbitration itself, the system still allows for teams to negotiate with players — for players to ask for more than they could without the threat of an arbitration hearing in place — and end up with a higher salary than they would have with no such event looming in the distance. As I wrote back in 2019 for Deadspin:

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Diamond is probably going away, but broadcasting should remain

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There sure seems to be trouble in regional sports network land, and the question of the day is how it will end up impacting Major League Baseball and the payments owed to them by various RSNs. There’s the well-publicized issue of what’s going on with Diamond Sports Group, which runs Bally Sports, as they announced they’re skipping a $140 million interest payment, which now gives them a 30-day grace period to figure out if they’re going to make said payment or file for bankruptcy instead. Alongside that, though, is AT&T Sports, which is run by Warner Media, and has possibly already missed out on its first slate of payments for broadcasting games. Possibly, because there have already been denials from AT&T Sports, on the matter, but we can at least treat that as a potential where there’s smoke there’s fire situation until things are known for sure one way or the other. [2/20/2023 note: This article originally linked to a Pittsburgh Post-Gazette story here, but the Post-Gazette staff is on strike. Apologies for the oversight; the link has been removed.]

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The A’s have been busy, but only relatively speaking

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The A’s keep on making moves this offseason, with the latest of them a trade of reliever-turning-starter A.J. Puk to the Marlins for sophomore outfielder JJ Bleday. It’s something of a challenge trade, since Puk converted to the bullpen in the minors and hasn’t made a start in the bigs, while Bleday’s rookie season didn’t approach his Triple-A production, but the thing I mostly want to note is that the A’s have been busy, but they haven’t exactly been putting in full effort. Again.

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A reminder the ‘Steve Cohen tax’ hasn’t really hit yet

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Shohei Ohtani won’t be a free agent until next winter, but he’s also literally Shohei Ohtani, so discussions about what his free agency will look like are already happening. A notable one occurred last week, when a “high-ranking exec” predicted to the New York Post’s Jon Heyman “a reckoning” when the current collective bargaining agreement expires to attempt to keep the spending of Mets’ owner Steve Cohen in check:

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