Archive for Legal

The Lockout Begins

Major League Baseball’s 26-year run of labor peace is officially over. As anticipated, MLB and the MLBPA were unable to reach terms on a new CBA ahead of last night’s 11:59 p.m. deadline. Shortly thereafter, MLB Commissioner Rob Manfred announced that the league had locked out the players:

For its part, the MLBPA issued a statement in response:

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An MLB Lockout Preview

With Major League Baseball’s current collective bargaining agreement (CBA) set to expire at 11:59 p.m. Eastern tonight, the owners and the Major League Baseball Players Association (MLBPA) are currently meeting in Dallas to exchange various proposals in an attempt to reach a deal. Unfortunately, media reports suggest that no new agreement is imminent, meaning that the sport is facing the very real possibility that it will experience its first work stoppage since the infamous players’ strike of 1994-95.

While it is certainly possible that tonight’s deadline could pass without triggering a labor stoppage — indeed, the two sides can elect to continue to negotiate with the existing CBA governing the sport in the interim — MLB commissioner Rob Manfred seemed to suggest prior to Thanksgiving that the owners will lock out the players if no agreement is reached this evening.

Consequently, this post explores the various options available to the MLBPA should the owners implement a lockout at midnight tonight as anticipated. Along the way, I will borrow from a similar post I wrote back in 2016 during the last CBA negotiations. While that labor-stoppage primer ultimately proved to be unnecessary, barring a miraculous turn of events in the coming hours, it would appear that fans are unlikely to be so lucky this time around. (Meanwhile, for anyone looking to understand the basis for the current dispute between the owners and players, this preview from a couple weeks ago may prove helpful.)

First, some basic legal background. A lockout is a legally sanctioned tool in which management (in this case, team owners) announces that it will refuse to allow its unionized employees (presently, the players) to work until an ongoing labor dispute is resolved. This means that the players will not be paid, or allowed to report to work, until a new CBA has been agreed to. In the interim, there will be no major-league free-agent signings, trades, or games played. A lockout is thus the ownership equivalent of a strike by the players. Read the rest of this entry »


Previewing Baseball’s CBA Talks

Following the completion of the World Series last week, all eyes in the baseball world will now turn to the sport’s next major showdown: the negotiation of a new collective bargaining agreement between the owners and the Major League Baseball Players Association. MLB’s existing CBA is set to expire at 11:59 p.m. EST on Wednesday, December 1, a deadline that many anticipate could trigger the sport’s first work stoppage since 1994. Indeed, while a strike or lockout is by no means guaranteed at this point, the possibility certainly appears more likely than it has at any point in the last two decades.

This post will provide an overview of the upcoming collective bargaining negotiations, briefly summarizing how the parties got to this point, what are likely to be the major issues to be hammered out in a new CBA, and what baseball fans can expect in the coming weeks (and, perhaps, months).

How We Got Here

In many respects, the seeds of the present discontent between the players and owners were sown during the negotiation of the sport’s last several CBAs, and perhaps most notably the soon-to-expire 2016 agreement. Although there was ample reason to believe that MLB’s financial model was moving in an unfavorable direction for the players, the union has been perceived by many as having failed to sufficiently prioritize the pursuit of significant economic modifications from the owners in 2016 (a claim that at least some in the union would dispute). Instead, to many, the MLBPA appeared to focus more on quality-of-life issues in the 2016 agreement, such as more humane travel schedules and clubhouse perks like private chefs. Read the rest of this entry »


Baseball’s Antitrust Exemption: Its Practical Effect

Back in 2015, FanGraphs ran the first two pieces in what was intended to be a three-part series examining baseball’s antitrust exemption. The first piece in the series looked at the historical evolution of the exemption, and in particular the U.S. Supreme Court’s evolving justification for baseball’s unusual antitrust immunity. The second piece then examined the various ways in which subsequent lower courts have applied and interpreted the scope of the exemption.

Then, as is so often the case, life got in the way. So the third and final installment of the series was never completed.

But with Wednesday’s news that several Republican senators were introducing legislation to strip MLB of its antitrust exemption – in response to the league’s decision to move this summer’s All-Star Game from Atlanta, following the recent passage of Georgia’s controversial voting bill – MLB’s unique status under the Sherman Antitrust Act is once again in the news.

While the latest effort to repeal the exemption faces uncertain odds of success, the proposed legislation nevertheless inspires us to consider an important question: What is the practical effect of MLB’s antitrust exemption, anyway?

Indeed, many baseball fans are often quick to blame the sport’s antitrust exemption whenever MLB does something they disagree with. If only baseball’s antitrust exemption were repealed, these fans contend, then MLB would be forced to [fill in the blank]. Lower its ticket prices. Compete with a rival league. Expand into new markets. Change its television blackout policy. Read the rest of this entry »


The Legal Ramifications of the Two-City Rays

By now, you’re undoubtedly aware that Major League Baseball gave the Tampa Bay Rays the go-ahead to explore playing a divided home schedule between St. Petersburg and Montreal. The plan is certainly ambitious, if nothing else:

Though no details of the overall plan are set, the basic framework is for the Rays to spend the first 2½ months or so of the season, playing about 35 of their 81 home games, in Tampa Bay, then move north by early June to finish the schedule in Montreal.

The Rays can pay the players for the inconvenience, similar to the stipends they get for taking international trips, and as part of a compensation package that also could offset other issues such as taxes, currency exchange (though they’re paid in U.S. dollars) and family travel costs.

But practical issues aside, the idea also faces a series of legal hurdles. First, the team’s use agreement with the city of St. Petersburg simply doesn’t allow it. That’s right – the Rays, unlike most teams, aren’t technically a tenant. They’re legally a licensee, as Eric Macramalla explains for Forbes:

The Rays never signed a traditional lease. Rather, they signed a Use Agreement, which, to say the least, is an onerous agreement that strongly favors St. Petersburg. A Use Agreement is in stark contrast to a traditional lease, where a tenant typically owes the landlord what’s left on that lease after breaking it.

As for sharing games with Montreal, the Use Agreement at Section 2.04 expressly provides that the Rays must “play all its homes games” at Tropicana Field unless St. Petersburg consents to the Rays playing some of its game elsewhere.

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Angel Hernandez’s Lawsuit Against MLB Just Got Really Interesting

Last year, we discussed one of the most important and underreported legal issues facing baseball: the discrimination lawsuit umpire Angel Hernandez filed against Major League Baseball. In the 10 months or so since we last checked in on the case, however, things have taken a couple of really interesting turns.

First, the case is no longer pending in federal court in Ohio, instead having been transferred (over Hernandez’s objection) to the United States District Court for the Southern District of New York. This isn’t in and of itself a major development; the benefits of what lawyers call “forum shopping” (filing a case in what is perceived to be a friendlier jurisdiction) are both absolutely real and also generally overstated. That said, the major benefits to a given friendly forum for a litigant aren’t likely so much in the expected outcome of a case, but rather in the procedural details involved in getting there. Perhaps no single issue drives forum shopping more than the rules and procedures governing fact discovery (the part of the lawsuit where the parties can ask written and oral questions and obtain each other’s relevant documents). Fact discovery procedural rules can sometimes vary widely between jurisdictions, and practitioners will sometimes choose a forum with the friendliest discovery rules to their side.

Why does this matter? Because Angel Hernandez’s lawsuit is now embroiled in a particularly interesting discovery dispute, and the court deciding it won’t be the Ohio forum Hernandez and his lawyers originally anticipated. You see, earlier this year, Major League Baseball sent this subpoena to the MLB umpires union. A subpoena is a special kind of demand for production of evidence, usually documents or testimony, which is issued by a litigant in a lawsuit and backed by court authority. Ignoring a subpoena is generally a bad idea because you can be held in contempt of court. Instead, if you don’t want to answer it, you have to ask the court to quash the subpoena and give a legal reason why. (Note: the word is “quash,” not “squash.” I’ve heard too many people – lawyers and laypeople alike – move to “squash” a subpoena. All that means is that you are wrapping your subpoena around a vegetable.) Read the rest of this entry »


What the Seahawks’ Suit Against Malik McDowell Means for Baseball

If you’re a fan of that vastly inferior sport involving shoulder pads, helmets, and a vaguely oblong ovoid incorrectly dubbed a “ball,” you’re probably familiar with a northwestern franchise known as the Seattle Seahawks (interestingly, there is no such thing as a “seahawk”). You may also be aware of a 2017 second-round draft pick for the team named Malik McDowell, a rare talent who never suited up in a game for the Seattle fake-birds. That has led to the Seahawks suing McDowell in federal court for the return of a significant portion of his signing bonus.

It’s a rare step for an NFL team to sue a former top draft choice to recoup signing bonus money. The development with McDowell underscores a monumentally disappointing spiral with the club following his selection with the 35th overall pick in 2017 draft. Once considered a potential top-10 pick in that draft class, McDowell suffered a slide on draft night after an inconsistent junior season at Michigan State, then never played a snap for Seattle after suffering serious injuries in an ATV accident prior to training camp nearly two years ago. He was released by the team in March.

But in timing that is germane to this week’s lawsuit, McDowell signed a four-year, $6.95 million contract with $3.19 million in bonus money several weeks before his accident. As part of that contract, the Seahawks were to pay McDowell that bonus in four increments. The team ultimately paid out three installments and withheld a fourth for nearly $800,000 following the revelation of his injury. After negotiations with the NFL Players Association and going through arbitration, Seattle agreed to forfeit half of the agreed-upon signing bonus, which still required McDowell to repay $799,238. The suit alleges McDowell never did despite attempts by the team to recoup the funds, leading to this week’s lawsuit.

Why is McDowell’s case relevant for our purposes? There are three reasons. First, in the wake of last week’s MLB draft, McDowell’s case represents a fascinating look at what can go wrong between a team and a player, particularly because there’s very little here that is unique to football. Off-field injuries happen to professional baseball players; it wasn’t long ago that Giants ace Madison Bumgarner suffered serious injuries in a dirt bike accident. The Seahawks declared McDowell to be in breach of his contract for riding his ATV. The team couldn’t sue McDowell for breach of contract directly, because, just as with MLB’s Collective Bargaining Agreement, the NFL’s CBA is the sole remedy for disputes between teams and players (that’s a doctrine called “labor law preemption”). So instead, the team took him to arbitration, where they won a ruling requiring McDowell to forfeit almost $1.6 million of his signing bonus, and return almost $800,000 that he’d already been paid to the Seahawks. When McDowell didn’t pay it, the team filed this lawsuit in federal court. The lawsuit doesn’t relitigate the arbitrators’ decision – it simply enters the decision as an enforceable judgment, allowing the team to garnish his future wages.

By and large, major league teams aren’t this aggressive when it comes to their players but there’s no reason in the CBA that they couldn’t be. The Giants were without MadBum for months following his dirt bike injury; although there was talk at the time that his contract prohibited the hurler from dirt biking, San Francisco opted not to attempt to recoup a portion of his sizable salary or void his contract. Trevor Bauer famously was forced to leave a playoff start because of a finger laceration he suffered while working on his drone. The Indians, too, didn’t pursue Bauer for breach of his contract. The Giants didn’t void Jeff Kent’s contract after a motorcycle accident, despite Kent lying about the cause.

We’ve talked about other areas where teams and the league are strident in their insistence that players stick to the rules; here, at least, teams have, for the most part, been remarkably lax. The last time a team voided a player’s contract for a non-baseball injury was when the Yankees famously nullified Aaron Boone’s contract after he injured his knee playing basketball in the 2003-04 offseason, clearing the way for the acquisition of one Alex Rodriguez; Boone received a settlement and signed with Cleveland. What makes Boone’s situation really interesting is that he was honest with the Yankees, and had his contract voided – whereas Kent wasn’t truthful, and he kept his contract. But none of those situations ended up in court.

Now, major teams are self-interested, for-profit entities. The Giants’ unwillingness to take legal action against Madison Bumgarner likely had much more to do with the value Bumgarner has to the franchise — and the need to maintain a good relationship with the team’s marquee player and with the MLBPA — than with magnanimity. That said, one wonders what the result would have been had Bumgarner been a less important player. If the same thing happened to the 2019, still-good-but-not-an-ace version of the southpaw in a year where the Giants are actively rebuilding and looking to shed salary, would the team be so quick to look the other way?

This is the first instance in years I’m aware of in which a court is being presented with the contract language present in all major league sports agreements that bars a player from engaging in dangerous, off-field activities. We talked earlier this year about Kyler Murray’s choice between baseball and football; the Seahawks’ case against McDowell rests on the same contract language we discussed then, which prohibits football players from playing other sports (the same goes for baseball). If Murray had elected to try both sports and been injured playing baseball, his football team may have proceeded against him in much the same way the Seahawks have done against McDowell. That possibility may have factored into Murray’s decision to choose to focus on one sport. And Murray is in a similar position to McDowell in one respect. After the outfielder-cum-quarterback signed with Arizona’s Cardinals, he was in breach of his Athletics contract and required to repay Oakland the majority of his signing bonus. If he doesn’t, the A’s will have the right to pursue the same kind of legal action against Murray that the Seahawks are taking against McDowell.

But McDowell’s case is fascinating for one additional reason. Throughout the dispute, McDowell has argued that he is physically fit to play, citing clearances he received from his own neurologists. Seattle’s doctors, meanwhile, wouldn’t clear him, arguing that he wasn’t past the head trauma he suffered in the ATV accident. The result was Seattle cutting McDowell, perhaps to avoid a grievance hearing regarding the player’s medical status.

Disputes between teams and players over injuries are becoming more commonplace in MLB. Just since June began, we had the Mets arguing with Robinson Cano in the media about whether or not the second baseman was healthy. We talked earlier this year about the Yankees allegedly withholding the existence of a bone spur in his throwing arm from relief ace Dellin Betances, which has led to his prolonged absence this season.

One fascinating McDowell analogue might be New York Mets outfielder Yoenis Cespedes. The Mets’ slugger, already out for an extended period after surgery for bone spurs in both feet, broke his right ankle in several places during what General Manager (and Cespedes’ former agent) Brodie Van Wagenen insisted was not a fall off of a horse, but was nonetheless a “non-baseball-related activity” at the outfielder’s ranch. (The official explanation was that Cespedes stepped in a hole on his ranch and suffered a “violent fall.”) Ranching is probably not a contractually acceptable in-season activity for a baseball player who is supposed to be rehabbing from surgery, and that led to Sports Illustrated’s Michael McCann considering if the Mets had legal grounds to void the outfielder’s contract. And McCann is probably correct: if Cespedes’ injury really was an accident, there’s probably not much they can do. But if Cespedes was digging the hole (as opposed to accidentally stepping into it) or riding a horse (despite his and the team’s denials), there’s not much that is legally different between his situation and those of Malik McDowell, Jeff Kent, or Aaron Boone.

Now, McDowell’s case isn’t legally precedential. As we’ve noted, recourse already exists for baseball teams should their players injury themselves in pursuit of activities that violate their contracts. In one sense, it’s “just” the entry of an arbitration award. But in another, the idea of a major league professional sports team suing a former player is largely unprecedented, at least in this century. What the MLBPA and the Mets will likely be watching closely is whether, and to what extent, the NFL Players Association intervenes to defend McDowell. Notably, the Seahawks originally attempted to recoup everything they’d paid McDowell. However, the NFLPA intervened on McDowell’s behalf in the arbitration, arguing that the NFL CBA didn’t permit the team to claw back his entire salary. Eventually, the player, the union, and the team agreed to a compromise that cut that number in half. What we don’t know is whether the NFLPA will intervene again now that the case is in active litigation. The NFLPA is in a bit of a tactical bind here. On the one hand, if the union defends McDowell, they are defending the breach of an arbitration award they helped to negotiate. On the other hand, if the NFLPA opts to stay out of the dispute, they send a message to other professional teams that union defense of players in litigation isn’t necessarily a given.

So McDowell’s case here isn’t about just McDowell. Instead, it will be interesting to see whether it represents a sea change in how professional sports leagues approach off-field player injuries.


J.D. Martinez’s Former Agent Is Suing Over His Contract

J.D. Martinez is one of the best hitters on the planet. Last year he posted a 170 wRC+ and 43 home runs, which is probably good. This year, he “only” has a 128 wRC+ and an obscenely-low-for-a-power-hitter 17.1% strikeout rate. When a .291/.373/.513 triple-slash means you’re having a “down” year, you’re either ridiculously good or your name is Mike Trout.

Martinez is not without problems, however. As Scott Holland explains for the Cook County Record:

A baseball agent has sued Merrill Lynch for allegedly conspiring to steer a superstar client to a rival agent Scott Boras just before the player landed a huge contract. . . . In a complaint filed May 10 in Cook County Circuit Court, agent Bob Garber, president of RMG Sports Group, sued Merrill Lynch; Pierce Fenner & Smith; and Bruce Lee, a financial adviser in Merrill Lynch’s Chicago office, alleging tortious interference with contractual relations.

Let’s break this down. Bob Garber is Martinez’s former agent. Days before he hit free agency, Martinez fired Garber and hired Scott Boras. Martinez and Boras then went on an offseason-long courtship with baseball before the slugger finally signed a five-year, $110-million contract with three opt-outs.

Now, whether Martinez would’ve been better off with Garber instead of Boras is anyone’s guess. It’s worth noting that Garber isn’t an inexperienced agent; his most notable negotiations include those for erstwhile Astros ace Roy Oswalt a 5-year, $73 million extension in 2006 and a five-year, $77 million deal between free agent southpaw C.J. Wilson and the Angels in 2011. More recently, Garber obtained a three-year, $38 million commitment for Tyler Chatwood from the Cubs. So Garber isn’t a neophyte, is the point, and that gives his lawsuit significantly more credence.

What is his lawsuit about? According to the complaint, which you can read here, Martinez was using a financial adviser at Merrill Lynch named Bruce Lee to manage his money. Garber alleges that he and Lee were friends, and that he referred his clients to Lee because he had personally invested with Lee himself. But, according to Garber, Lee told Martinez to drop Garber and hire Scott Boras, because Lee wanted to obtain a financial benefit from having Boras’ book of superstar clients invest with him. Garber is seeking the 5% commission that he would have received had he negotiated Martinez’s Red Sox contract himself. Read the rest of this entry »


The Ballpark Netting Debate Is Back

Last Wednesday, Cubs outfielder Albert Almora Jr. hit a foul ball. That is not an unusual occurrence at a baseball game, except that this particular foul ball hit a four-year-old girl in the stands. Almora, quite understandably, was visibly shaken.

Unsurprisingly, the incident ignited another round of debate over a topic we first discussed last year: protective netting at ballparks. Brian Johnson, a former major league catcher and current scout for the San Francisco Giants, told CNN’s Jeff Pearlman that the existence of seats without netting is like building cars without seat belts. But, as we discussed last year, the law doesn’t see it that way:

As explained in the Restatement [of Torts], there exists in the law a doctrine called “assumption of the risk.” In the context of baseball, that basically means that if you sit in an area without protective netting and you know it’s a possibility that a foul ball might come your way, you can’t sue the team for getting injured by that foul ball. As one court put it in a case called Edward C. v. City of Albuquerque, a fan ‘must exercise ordinary care to protect himself or herself from the inherent risk of being hit by a projectile’ — even if that projectile is traveling upwards of 100 mph.

There’s a really excellent write-up on this that you can read here. In short, however, this “baseball rule” represents the majority rule in the United States. If a foul ball comes your way at a ballpark, the law basically says you should have seen it coming. You’ll probably find language on your ticket saying you assume the risk of injury by foul ball, like the Yankees have on theirs.

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T-Shirt Cannons and a New Legal Frontier

Last year, we talked about the so-called “baseball rule,” which protects baseball teams from liability for injuries caused by foul balls. To wit:

As explained in the Restatement, there exists in the law a doctrine called “assumption of the risk.” In the context of baseball, that basically means that if you sit in an area without protective netting and you know it’s a possibility that a foul ball might come your way, you can’t sue the team for getting injured by that foul ball. As one court put it in a case called Edward C. v. City of Albuquerque, a fan “must exercise ordinary care to protect himself or herself from the inherent risk of being hit by a projectile” — even if that projectile is traveling upwards of 100 mph.

There’s a really excellent write-up on this that you can read here. In short, however, this “baseball rule” represents the majority rule in the United States. If a foul ball comes your way at a ballpark, the law basically says you should have seen it coming. You’ll probably find language on your ticket saying you assume the risk of injury by foul ball, like the Yankees have on theirs.

But baseballs aren’t the only projectiles spectators will encounter during baseball games. Earlier this month, the Associated Press reported on a lawsuit filed against the Houston Astros for a fan injury caused by a T-Shirt Cannon:

A woman has sued the Houston Astros for more than $1 million, saying that a T-shirt cannon by the team’s mascot at a game last season broke her finger.

The Houston Chronicle reports that Jennifer Harughty alleges that the mascot, who is named Orbit, “shattered” her left index finger during a game last July when a T-shirt fired from a “bazooka style” cannon into the stands struck her finger.

The Astros said in a statement Tuesday the team is “aware of the lawsuit with allegations regarding Orbit’s T-shirt launcher. We do not agree with the allegations. The Astros will continue to use fan popular T-shirt launchers during games. As this is an ongoing legal matter, we will have no further comment on this matter.”

The Chronicle reported court records said Harughty was seated in the middle of the first deck behind the third base line when the incident occurred. The lawsuit said the fracture required two surgeries to repair.

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