Archive for Legal

Michael Conforto’s Wrist and the Language of the CBA

On Saturday, the New York Mets announced that the team was demoting struggling outfielder Michael Conforto, optioning him to Triple-A Las Vegas. On one hand, the Mets’ decision to send Conforto to the minors wasn’t particularly surprising, as the second-year player had been in the midst of a deep slump, hitting just .148/.217/.303 since May 1.

On the other hand, however, the timing of Conforto’s demotion was potentially a bit controversial in a different respect. As ESPN’s Keith Law noted on Saturday:

Indeed, Conforto reportedly was given a cortisone shot on Tuesday, June 14 to treat strained cartilage in his ailing left wrist.

This is potentially significant because Article XIX(C)(1) of Major League Baseball’s collective bargaining agreement forbids teams from sending injured major-league players to the minor leagues. As the provision clearly states, “Players who are injured and not able to play may not be assigned to a Minor League club.” Instead, the CBA requires clubs to place injured major-league players on the major-league disabled list.

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Let’s Fix MLB’s Suspension System

Late Thursday afternoon, Major League Baseball announced it was suspending Yordano Ventura for nine games, and Manny Machado for four games, for their respective involvement in Tuesday night’s brawl between the Kansas City Royals and Baltimore Orioles. As is often the case in these situations, many quickly criticized the seemingly lax punishment doled out to Ventura in particular, who will effectively miss only a single start despite having similarly instigated fights on several prior occasions. Indeed, on Wednesday, FanGraphs’ own Dave Cameron had called for Ventura to be suspended for 30 games due to his status as a repeat violator.

Even if MLB wanted to throw the book at Ventura in this case, though, its hands were largely tied. As I’ve previously noted, under Article XII of MLB’s collective bargaining agreement, any disciplinary action that the league takes against a player for on-field conduct must be based on “just cause.” Not only does this standard require that the punishment fit the crime, but also — perhaps more importantly here — that the disciplinary action be consistent with prior penalties doled out by the league for similar conduct.

This presented a problem for MLB in Ventura’s case because pitchers who were previously found to have intentionally thrown at a batter have historically only faced a suspension somewhere on the order of seven to 10 games. While MLB may have been able to justify suspending Ventura a bit longer than that, given his repeat-offender status, any suspension of much more than 12 or 13 games may very well have been overturned by an arbitrator on appeal.

This means that even if MLB would like to take greater steps to crack down on beanballs, it will be hard pressed to do so without the approval of the Major League Baseball Players Association.

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The NCAA’s New Agent Rule and the MLB Draft

Historically, players selected straight out of high school in the Major League Baseball draft, or those drafted following their junior year in college, were forced to walk something of a fine line. Because the National Collegiate Athletic Association’s rules specified that any player who formally signed with an agent would lose his remaining college eligibility, draftees could not be directly represented by an agent when negotiating with an MLB team.

Instead, players could only employ an agent in an “advisory” capacity. Under NCAA rules, so long as a player’s “advisor” did not directly communicate with an MLB team on the player’s behalf, and so long as the player compensated the advisor for his services (at the advisor’s normal hourly rate), a player would maintain his college eligibility should he ultimately elect not to sign a professional contract and instead return to (or enroll in) college.

Of course, in practice this distinction between an “agent” and an “advisor” often turned out to merely be a matter of semantics. Teams routinely expected (and preferred) to communicate directly with a player’s agent, rather than the player himself, while recent draftees usually preferred to have their agent/advisor negotiate directly with an MLB team on their behalf. So despite their official title, advisors often served as players’ agents, directly representing their clients during their interactions with MLB teams, in violation of NCAA rules.

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Baseball and the Legal Implications of Biometric Data

Last week, Rian Watt published a terrific piece at Vice Sports on the growing use of wearable technology by Major League Baseball teams for purposes of collecting players’ biometric data. If you haven’t read Watt’s article, go check it out, it’s fantastic. In short, though, the piece explores the ethical implications of MLB teams asking their players to wear devices — such as the Readiband sleep monitoring system recently employed by the Seattle Mariners — that collect data that can not only be used for purposes of fine-tuning players’ on-field performance, but also potentially for roster- and contract-related decisions as well.

For instance, while the sleep-tracking data provided by Readiband could certainly help players adjust their sleep patterns to maximize their chances of performing at a peak level on the playing field, this data could also give teams insight into a player’s habits undertaken in the privacy of his own home. It’s not hard to imagine a team ultimately incorporating such information, or other forms of biometric data, into their player evaluations in ways that may ultimately harm a player’s career prospects or earning potential.

In addition to the ethical considerations surrounding the use of these technologies explored in Watt’s article, the collection of biometric data by MLB franchises also has potential legal implications as well. As Watt notes in his piece, wearable technology may very well become an issue during this year’s collective-bargaining negotiations between MLB and the Major League Baseball Players Association. Indeed, Pirates’ infielder Cole Figueroa recently mentioned during an episode of the Effectively Wild podcast that a number of MLB players are growing increasingly concerned over the potentially adverse consequences of the growing use of this technology by their teams.

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Major League Baseball and the New Overtime Rules

This past Wednesday, the U.S. Department of Labor released its long-awaited update of the regulations governing overtime pay under the Fair Labor Standards Act (FLSA). Specifically, the new Labor Department rule modifies the FLSA’s so-called “white collar” exception, under which certain salaried workers employed in an executive, administrative, or professional capacity are not entitled to overtime compensation.

Currently, anyone working in a white-collar position who receives a salary of at least $23,660 per year is exempt from the FLSA’s overtime requirement, meaning that they do not receive any additional pay even when working more than 40 hours per week. Beginning in December 2016, however, that salary threshold will rise to $47,476, so that any white-collar workers earning less than that amount annually will now be owed one-and-a-half times their normal hourly rate anytime they work 41 or more hours per week.

Because MLB teams employ dozens of front-office and business employees working in an executive, administrative, or professional capacity, and because many of these individuals may earn less than $47,000 per year despite routinely being expected to work more than 40 hours per week, this new rule has potentially significant ramifications for the baseball industry.

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The Lawsuit That Won’t Go Away: The Nats, O’s, and MASN

One can be excused for having lost track of the many twists and turns in the long-running broadcast-rights-fee dispute between the Baltimore Orioles and Washington Nationals. Over the past four years, the two teams have waged an extensive legal battle over how much the Mid-Atlantic Sports Network (MASN) ought to be paying the Nationals for the team’s local television rights, with both sides capable of pointing to various victories and defeats along the way.

For those interested in a longer recap of the many ins and outs of the dispute, we have previously covered all of the gory details here on a number of occasions over the last several years. In short, though, under the terms of the 2005 agreement in which Baltimore allowed the Nationals to move to Washington, D.C., the teams agreed that they would renegotiate the television rights fees that MASN — the vast majority of which is owned by the Orioles — would have to pay the Nationals every five years.

Unable to reach an accord on the Nationals’ rights fees for the 2012-2016 time period, the teams eventually took the dispute to an arbitration heard by Major League Baseball’s Revenue Sharing Definitions Committee (RSDC), which ultimately awarded the Nationals $60 million per year in broadcast rights fees from MASN. Dissatisfied with this outcome, MASN and Baltimore then took the matter to court, successfully persuading a New York state judge (Judge Lawrence Marks) to overturn the RSDC’s arbitration decision late last year. In particular, Judge Marks ruled that because the Nationals’ legal counsel in the dispute — the Proskauer Rose law firm — had previously represented several of the RSDC members’ teams, the firm’s participation in the arbitration created the appearance of potential bias by the RSDC in favor of Washington.

As I noted this past December, both sides then appealed Judge Marks’ ruling to the court of appeals. The Nationals argued that the trial court had erred by throwing out the arbitration award; MASN and the Orioles, conversely, have asserted that Judge Marks should have permanently disqualified the RSDC from rehearing the dispute. That appeal remains ongoing.

Washington, however, believing that MASN has been underpaying it for years, is not content to sit back and wait for the appellate process to run its course. Instead, the team is now asking Judge Marks to order the Orioles to re-arbitrate the matter before the RSDC, even while the appeal continues. MASN and the Orioles, meanwhile, have unsurprisingly opposed this request, countering last week by asking the trial court to postpone any future arbitration in the dispute pending the outcome of the appeal.

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Upper-Deck Fan Safety Questioned in New MLB Lawsuit

Major League Baseball stadiums have been the site of a series of unfortunate accidents in recent years in which fans seated in the upper deck have toppled over the safety railing and fallen dozens of feet onto the concourse below. The most infamous of these incidents occurred in 2011, when Texas Rangers fan Shannon Stone fell to his death while reaching over the upper-deck guardrail to try to catch a ball tossed into the stands by Josh Hamilton.

Although not as highly publicized, Atlanta’s Turner Field has rather shockingly been the site of three such fatal falls in just the last eight years alone. Most recently, in August 2015, Gregory Murrey fell over a guardrail to his death after losing his balance when standing up from his second row, upper-deck seat.

In a new lawsuit filed on Tuesday, Murrey’s family seeks to hold the Braves legally accountable for his death, arguing that the team failed to take the basic precautions necessary to protect fans from injury in the upper deck. In particular, the suit contends that had the safety railing at Turner Field been installed at a more appropriate height, Murrey’s unnecessary death could have been avoided.

Interestingly, in addition to suing the Braves, the lawsuit also names MLB itself as a defendant in the case, claiming that the league has consistently failed to require its teams to install sufficient safety railing in the upper deck. As a result, Tuesday’s lawsuit may bring renewed awareness to a fan-safety issue that, at least in recent years, has taken a backseat to injuries resulting from foul balls or broken bats flying into the stands.

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MLB Scores Important Victory in Fan-Safety Lawsuit

In the aftermath of a series of high-profile fan injuries at major-league ballparks this past summer, a federal class-action lawsuit — Payne v. Office of the Commissioner of Baseball — was filed against all 30 Major League Baseball teams this past July. The suit sought to force all MLB franchises to implement additional safety mechanisms to help protect fans from foul balls and broken bats, asking the court in particular to order the league to ensure that foul-pole-to-foul-pole netting was installed in all 30 of its stadiums to protect fans all the way down the foul lines from the dangers of flying objects.

As I noted at the time the lawsuit was filed, the plaintiffs’ odds of winning the case appeared to be slim, as MLB had a number of potentially strong defenses to assert on its teams’ behalf. It was not particularly surprising, then, that MLB formally asked the court to dismiss the Payne lawsuit last November, relying on several of these arguments in the process.

MLB’s legal efforts were rewarded this past Friday when Judge Yvonne Gonzalez Rogers — the California federal judge presiding over the case — ruled that 25 of the 30 MLB franchises should be dismissed from the Payne lawsuit. Moreover, because Judge Rogers’ opinion also suggested that the five remaining MLB teams may eventually be dismissed from the case as well, it appears MLB’s partial victory in the lawsuit could soon become a complete triumph in the not-too-distant future.

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MLB’s Brewing Fight Over Smokeless Tobacco

Although the potential health risks of using smokeless tobacco are by now well established, countless Major League Baseball players nevertheless continue to use these products both on and off the playing field, much to the chagrin of MLB. And despite these dangers, the league has, to date, been largely unable to convince the Major League Baseball Players Association to agree to prohibit players from using tobacco products in MLB stadiums.

Recently, however, MLB’s efforts to curtail its players’ use of smokeless tobacco products gained new momentum from a rather unlikely source: local municipal governments. In recent months, three major-league cities – Boston, Los Angeles, and San Francisco – have each passed new laws formally banning the use of smokeless tobacco in public facilities, including MLB ballparks. Meanwhile, with a similar tobacco ban set to take effect throughout the entire state of California in 2017, along with comparable legislation currently making its way through the city governments of Chicago, New York, Toronto, and Washington D.C., smokeless tobacco use could soon be legally prohibited in more than one-third of MLB’s 30 ballparks.

When these local ordinances were initially enacted, many were skeptical that the laws would actually deter MLB players from using tobacco products, since any player intent on ignoring the new prohibitions would easily be able to afford to pay a relatively modest monetary fine in exchange for breaking the law.

However, while the threat of punishment under these local laws alone may not be enough to change players’ behavior, these ordinances have created a new avenue for MLB to attack the problem, one that could potentially let the league punish players for their tobacco use.

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