Archive for Legal

Examining SMT’s Lawsuit Against MLBAM

On Thursday, a company called Sports Media Technology (“SMT”) sued MLB Advanced Media (“MLBAM”) over Statcast. The complaint in the lawsuit is 92 pages long, and I read it so you don’t have to. But if you did want to, here it is.

According to the lawsuit, in 2006, MLB and MLBAM entered into a contract with SMT to develop PITCHf/x. However, according to SMT’s lawsuit, MLBAM then breached that contract, poached at least one key engineer from SMT, then used SMT’s PITCHf/x technology to create Statcast.

According to SMT, Sportvision and MLBAM signed a contract before SMT purchased the company that gave Sportvision exclusive rights to provide use of their PITCHf/xpitch-tracking system for three full MLB seasons. However, SMT now alleges that MLBAM has not only failed to live up to that agreement but they’ve also been working with third parties to emulate that technology. Per SMT, that not only fails to fulfill the contractual obligations of their agreement but also is a misuse of their patented technology.

Now let’s make one thing clear at the outset: the Complaint represents only one side of the story. We don’t know if it’s true or not, and SMT’s case has real problems. We’ll get to those in a second.

Some reports have pegged this as a simple breach-of-contract suit, framing it as SMT suing MLBAM for prematurely terminating the deal in 2016 so as to proceed with developing Statcast. But that’s not really accurate.

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The Law of the Basebrawler

Rougned Odor is the second baseman for the Texas Rangers. You read FanGraphs, you know that. Odor has good power, plays decent defense, and really ought to learn to take a walk.

Rougned Odor also has a mean right hook.

The man on the receiving end of Odor’s punching prowess, Jose Bautista, is currently out of work. That means he needs something to do. And since idle hands are the devil’s playground, let’s give Jose that something.

Let’s have Jose Bautista sue Rougned Odor for battery.

Now, we already know what battery is from our discussion of beanballs, but let’s refresh our memories just to make sure. Battery is a (1) harmful bodily contact, (2) with intent to cause that bodily contact, and (3) without consent. Assault is apprehension of that intentional harmful bodily contact. In other words, actual physical contact isn’t necessary for an assault charge, whereas it is necessary to qualify as battery. Some people just call assault “attempted battery,” but that’s not exactly right; it’s a little more complicated than that. Assault and battery vary a bit from state to state and are creatures of state law like this one.

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Does MLB Have a Concussion Lawsuit in Its Future?

The new baseball season is upon us. But even before the Cubs and Marlins began play today, indications from this spring have suggested that a dangerous trend, apparent last year, has continued into the present one — namely, an increased incidence of concussions.

Before I address that, though, first a brief primer on what concussions can do to a baseball player. In 2010, first baseman Justin Morneau was running a 183 wRC+ and had established himself as one of the best hitters in baseball. After suffering a concussion that knocked him out for the remainder of the season, he was never the same, failing to play a full season until 2012 or to cross the 120 wRC+ threshold against until 2014. Third baseman Corey Koskie was a borderline star before suffering a concussion with Milwaukee; he never played again. The way he describes the effects are frightening: “I remember walking up to the plate, thinking OK which way do I run again?”

Joe Mauer‘s career was derailed by a concussion that gave him blurry vision for two years; he was hitting .324 with a 143 wRC+ when he suffered the injury in 2013 and didn’t eclipse a .300 batting average, a .350 OBP, or a 110 wRC+ again until 2017. Last year, Brandon Belt’s season was put on hold by a concussion, as well; he experienced feelings of depression and lethargy.

In perhaps the most tragic case, Cincinnati utilityman extraordinaire Ryan Freel committed suicide in December 2012. Freel had suffered 10 concussions during his career and was posthumously diagnosed with Chronic Traumatic Encephalopathy. CTE is a disease caused by repeated concussions or traumatic brain injuries and which was most famously diagnosed in the late Patriots football player Aaron Hernandez. Suicide and aggression are two symptoms of CTE. There’s even research to suggest Lou Gehrig didn’t suffer from ALS, but instead had CTE.

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Whither the Independent Leagues?

Last week, Congress passed — and President Trump’s signed into law — the Save America’s Pastime Act as part of the omnibus spending bill funding the operation of the federal government for the foreseeable future. As Sheryl Ring and I each noted last week, the act created a new exemption to the federal minimum-wage and maximum-hour laws applying to minor-league baseball players.

Specifically, under the new provision that went into effect on Friday, so long as Major League Baseball pays its minor leaguers the federal minimum wage for 40 hours per week during the regular season, the players will not be entitled to any additional pay for overtime or offseason work under federal law.

Although most commentators initially focused on the effect the provision is likely to have on those playing for one of MLB’s affiliated minor-league teams, Baseball America’s J.J. Cooper noted last week that the new exemption could have dire implications for teams belonging to non-MLB-affiliated, so-called independent minor leagues (such as the American Association, Atlantic League, Frontier League, and Pacific Association). Yahoo’s Jeff Passan expressed a similar concern on Monday, while SB Nation’s Marc Normandin argued that these independent teams deserve to go out of business if they cannot afford to pay their most important employees the minimum wage.

Undoubtedly, the obligation to pay players the minimum wage would likely impose a financial hardship on many independent-league teams. But it’s not at all clear that that will actually be the end result of the Save America’s Pastime Act.

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The Remaining Path Forward for Minor-League Players

Much digital ink has been spilt regarding the plight of minor-league baseball players. Dating back to the filing of the first minor-league wage lawsuit in back 2014, countless pieces have been written denouncing Major League Baseball for paying minor-league players a sub-minimum wage. Indeed, the optics of an organization that generates $10 billion dollars per year in revenues electively deciding to pay thousands of its full-time employees at below a subsistence level is — needless to say — not great.

So it was not surprising that the news that Congress appears posed to officially exclude minor leaguers from (at least some of) the protections afforded under federal wage and hour laws resulted in an immediate wave of outcry by numerous commentators. Specifically, as Sheryl Ring discussed earlier in the week, news reports emerged on Sunday night that, after years of persistent lobbying efforts, MLB was posed to succeed in persuading Congress to include a provision in its omnibus spending bill that would exempt minor-league players from Fair Labor Standards Act, the federal law establishing the minimum wage and overtime rules that millions of Americans take for granted.

On Wednesday night, the actual language of the provision that Congress would be voting on was released:

In some respects, the specific legislative language is better than critics had anticipated. Rather than entirely excluding minor leaguers from the right to the minimum wage — as had originally been feared — the provision’s focus was actually a bit narrower. Instead, it simply provides that minor league players are not entitled to overtime benefits when working more than 40 hours in a week, so long as they are otherwise paid a weekly salary compliant with the federal minimum wage (at least during baseball’s regular season). In other words, the exemption doesn’t deprive players of the right to the minimum wage, just to overtime compensation.

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Aaron Judge, Manny Machado, and the Law of Tampering

Aaron Judge is in hot water. The Yankees’ slugger and junior Tower of Power recently told Baltimore’s Manny Machado that the shortstop would “look good in pinstripes.” Major League Baseball, concerned that Judge’s comments might constitute tampering, proceeded to slap the right fielder on the wrist.

Now, it’s common knowledge that Machado (a) is a free agent after the season and (b) has been connected to the Yankees before. So what, exactly, did Judge do wrong here? And what is “tampering” anyway?

If you’re a fan of that other sport invented by James Naismith using soccer balls and peach baskets, you’ve probably seen “tamperingthrown around relatively often. It’s less common in baseball, but does occur. So let’s look at the Rule. You’ll find it in Major League Baseball’s Official Rules. No, not these rules. These other rules. I bet you didn’t know there were two rulebooks.

Anyway, Rule 3(k) on page 43 of the latest Rulebook governs tampering, and says this:

TAMPERING. To preserve discipline and competition, and to prevent the enticement of players, coaches, managers and umpires, there shall be no negotiations or dealings respecting employment, either present or prospective, between any player, coach or manager and any Major or Minor League Club other than the Club with which the player is under contract, or acceptance of terms, or by which the player is reserved or which has the player on its Negotiation List, or between any umpire and any baseball employer other than the baseball employer with which the umpire is under contract, or acceptance of terms, unless the Club or baseball employer with which the person is connected shall have, in writing, expressly authorized such negotiations or dealings prior to their commencement.

And as if to reiterate that point, Section 3 of the MLBPA Regulations of Player Agents states that only agents can do recruiting.

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The Minor-League Wage Battle Might Be on the Verge of Ending

­On Sunday, the Washington Post reported that the omnibus spending bill currently being considered by Congress may include statutory language insulating Major League Baseball from liability for not paying minor leaguers minimum wage. This may be the first time on FanGraphs that we are going to be discussing an omnibus spending bill. But it’s relevant in this case.

Readers are likely familiar with the lawsuits filed by Minor League Baseball players alleging that their pay — generally around $1,100 per month for first-year players, with no pay for spring training — is a violation of a law called the Fair Labor Standards Act because it failed to pay minor leaguers even minimum wage. Thus far, the suits have had mixed results: one suit that attacked Major League Baseball’s antitrust exemption was dismissed last summer, but another suit, which has been pending for over three years now, remains extant. Paying minor leaguers minimum wage would cost MLB franchises an extra $5.5 million per year. Minor leaguers are not members of the MLBPA.

Nathaniel Grow already covered the problems these suits face in a pair of excellent articles I recommend highly. My own take, as someone who has personally litigated about two dozen class actions in one form or another, is that one suit, in particular, has a shot. (The reasons why are complex enough to deserve their own article, but if you’re curious, that case is Senne et al. v. Office of the Commissioner of Baseball et al., and I think that Garrett Broshuis, the plaintiffs’ lead attorney, had the right idea in the very clever way he pleaded his complaint.) That said, even if none of the lawsuits had any legal merit whatsoever — which is not, I believe, the case — defending such suits is expensive, and there is always risk inherent to any contested litigation.

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The Mound-Visit Rule Might Have an Enforcement Problem

Major League Baseball’s new pace-of-play rules, including the new mound-visit limits, have already been covered at this site. Accordingly, this post won’t address the rules themselves. Rather, I’d like to examine what happens when a player breaks those rules — or, possibly, what won’t happen when a player breaks them.

Catchers Willson Contreras and Martin Maldonado have already said they won’t follow the new mound-visit rule. Specifically, they said they are willing to pay fines rather than comply if the game is on the line.

As a lawyer, my entire job is to research, apply, and interpret rules of one sort or other. So when I hear that two players are going to willingly not follow rules, it piques my interest. And that got me wondering… is a fine all they’d face if they did, as they said, ignore the rule and go out for that seventh visit?

The first issue is whether they’d even be allowed to go out a seventh time. Joe Torre thinks (and reports confirm) that umpires just won’t even permit the seventh visit at all. But as a practical matter, how will the umpire prevent it, exactly? It doesn’t seem that the umpire will be able to throw himself bodily in the path of every wayward catcher. So there have to be some consequences for violators. And this is where things get weird.

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The Law of the Headhunter

Depending on your point of view, one of the more celebrated or ignominious parts of the game of baseball is the headhunter, perhaps most recently embodied in the person of Vicente Padilla. There have been others, though. Armando Benitez was, in his day, notorious for throwing chin music — and sometimes more than that.

Throwing a pitch at a batter intentionally is a violation of Major League Baseball Rule 6.02(c)(9) (Rule 8.02(d)). The comment to that Rule states that “[t]o pitch at a batter’s head is unsportsmanlike and highly dangerous. It should be — and is — condemned by everybody. Umpires should act without hesitation in enforcement of this rule.” Despite that strong language, headhunting is not a violation of baseball’s unwritten rules. Therefore, it keeps happening.

Whatever virtues one might find in the practice, it’s nevertheless obvious that headhunting can be really dangerous. Former Cleveland shortstop Ray Chapman notably died after being struck in the head. Tony Conigliaro’s career — and life — was altered dramatically by a beaning in his age-22 season. Even throwing at a batter unintentionally can have devastating consequences, as we saw with Giancarlo Stanton after he was hit by Mike Fiers.

But the presence of headhunting in the game raises an interesting question — namely, what legal recourse, if any, does a batter have against a pitcher who throws at him intentionally?

Let’s start with some basic definitions to help us out here. Today we’ll be talking about “assault” and “battery,” two terms that get thrown around a lot in popular culture but actually have pretty specific legal meanings.

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How Tax Reform Impacts Baseball

Last week, colleague and attorney extraordinaire Nathaniel Grow sent me an article — specifically, an Accounting Today piece by Michael Cohn — regarding potential changes to major-league baseball trades as a result of the recent tax reform law. I decided, using that piece as a start, to determine what impact the legislation would have on MLB teams generally, if any at all.

As it turns out, the new law does impact them. A lot.

Let’s begin with some background. What we colloquially refer to as the “tax reform law” is actually more properly called by its title, the Tax Cuts and Jobs Act. The law made sweeping changes both to individual and corporate tax rates and regulations. Most of it is outside the scope of our concern here. It’s essential to remember, however, that baseball teams are all businesses. There are, of course, different types of business ownership structures — some are corporations, some are partnerships, some are limited liability companies — but the underlying point is that they are all business entities of some sort or other. And so the changes in the tax code impact how every team operates.

Now, a fair warning: this involves a discussion of tax law, which isn’t famous for producing scintillating content. Also note that what follows represents a gross oversimplification for purposes of brevity. In other words, don’t go doing your taxes based on the information provided here.

Ready? Let’s go.

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