Mar 22, 2010, 2:15 PM EST
I’ve always known that players can’t hold equity stakes in their teams due to the Basic Agreement (see paragraph 4(c) on p. 213 of this massive document), but I never knew why.
Today, however, Kevin Goldstein of Baseball Prospectus explains. Once upon a time Rogers Hornsby got a cut of the Cardinals, was traded to the Giants, and quickly found his ownership stake to be a conflict of interest. And it got worst when he went to divest, as the Cardinals tried to lowball him, leading to everyone in the National League having to chip in to buy him off. As a result of all of that, the rule was passed and has been incorporated into player contracts and/or the Basic Agreement ever since.
The only exception: players can take a stake in the team with special approval of the Commissioner. Goldstein speculates whether or a team could give a chunk of the team to a player with language built in to deal with any Hornsby-esque conflicts of interest and have it approved by Selig. He dismisses it almost immediately, however, which is probably sensible given that it’s not likely to ever happen.
The only thing I’d add is the notion of maybe offering a player a chunk of a team — or at least the option to buy a chunk of the team — that doesn’t vest until retirement. I kind of doubt that would ever happen, though, because it would require something akin to financial transparency for baseball teams and they really, really hate that.
- Royals sign Edinson Volquez for two years, $20 million 25
- Rays, Padres, Nationals agree to 11-player trade 80
- Sergio Romo re-signs with the Giants for $15 million 14
- So, apparently we’re sweating the Matt Kemp physical now 46
- The United States will seek to normalize relations with Cuba 143
- Marlins complete Michael Morse deal: two years, $16 million 19
- Padres, Rays, Mariners discussing trade involving Wil Myers 36
- It is perfectly clear that A-Rod is the Yankees’ DH. At best. So there will be no drama, right? 37
- Baseball’s highest-ranking Hispanic woman employee sues for discrimination (163)
- The United States will seek to normalize relations with Cuba (143)
- Cubs, Red Sox, Dodgers, Padres, Rangers, and Astros interested in Phillies’ Cole Hamels (110)
- Done Deal: Yoenis Cespedes and two players traded to Detroit for Rick Porcello and a minor leaguer (105)
- Chase Headley signs a four-year deal with the Yankees worth at least $52 million. (95)