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Coronavirus

MLB Ticket Lawsuit Seeks Class Action Status

By Jeff Todd | April 21, 2020 at 8:54am CDT

In a lawsuit filed recently in U.S. District Court in Los Angeles, a pair of fans allege that MLB, its teams, and a host of ticket re-sellers have wrongly refused to refund ticket costs and associated fees relating to the postponed 2020 season. Jesse Rogers of ESPN.com and Bill Shaikin of the Los Angeles Times are among those to cover the filing.

The would-be class representatives cover the two groups seeking relief: one is a partial season ticketholder and the other bought single-game tickets. In both cases, it seems, full or partial refunds have not been available because MLB continues to treat games as being postponed rather than cancelled.

Reflecting its attempt to achieve class certification, the suit doesn’t just go after the specific teams and ticket agencies involved in those cases. The complaint lists all thirty teams and four ticket companies: official MLB partner StubHub along with Ticketmaster, Live Nation, and Last Minute Transactions.

We are now several weeks into the scheduled 2020 MLB season with no end in sight to the shutdown. Most of the current chatter has surrounded the possibility of returning to play without fans in attendance — an outcome that would obviously warrant a refund.

But the league has yet to formally abandon hope of a full 2020 season, providing at least partial or temporary public relations and legal cover for the fact that individual fans’ funds are still sitting in the bank accounts of these large companies. Per Rogers, the eventual plan is likely “to offer credit toward tickets for 2021 if no games are played this summer.”

While these businesses are trying to work through surprising, difficult, and wholly unprecedented issues, many individuals are dealing with yet tougher times. And there’s little doubt that the money will ultimately have to be returned if the tickets can’t be honored for the 2020 season. The ESPN report does seem to indicate that the 2021 credit scenario would be presented as an alternative to a refund in the (exceedingly likely) event that games are indeed cancelled. The named defendants have yet to respond in court to the initial filing.

The lawsuit, then, is likely to spur battles over timing and other specifics — if, at least, its plaintiffs are successful at achieving class certification. There’ll surely also be a big fight over where the suit should be heard and what law will apply. As Shaikin notes, the initial pleading asserts claims arising under several uniquely consumer-protective California statutes.

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MLB Reportedly Considering Three-State Plan

By Connor Byrne | April 20, 2020 at 10:37pm CDT

The states of Arizona and Florida have already been mentioned as possible sites for the 2020 Major League Baseball season if the coronavirus pandemic doesn’t prevent it from happening. In the event the campaign does get underway, Texas could join Arizona and Florida in hosting teams and games, R.J. Anderson of CBS Sports reports.

Anderson heard from a source that there’s “guarded optimism” this three-state plan could actually take effect. Major league, minor league and spring training facilities would all be potential spots for regular-season games, and there would be multiple contests per day in those places.

Notably, there are five MLB stadiums among the states. Texas features two big league ballparks, the Astros’ Minute Maid Park and the Rangers’ soon-to-open Globe Life Field. Both facilities include retractable roofs, which is important when considering the Texas heat and the need to guard against potential rainouts. MLB would obviously want to get in as many games as possible during what would surely be a truncated season. Fortunately for the league, Arizona (the Diamondbacks’ Chase Field) and Florida (Marlins Park and the Rays’ Tropicana Field) also have either domed or retractable venues.

It’s unclear how many clubs would be stationed in each state, nor is it known how serious the league is about this possibility. Likewise, it’s anyone’s guess whether staging any MLB games in 2020 – even without spectators – will prove to be feasible with COVID-19 still not under control. Nevertheless, with MLB guaranteed to take an enormous financial hit if a season doesn’t take place, it’s brainstorming many different ideas as it hopes to avoid a worst-case scenario.

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Korea Baseball Organization Preparing To Begin Regular Season In Early May

By Mark Polishuk | April 20, 2020 at 10:00pm CDT

APRIL 20, 10:00pm: The KBO’s Opening Day is set for May 5, Dan Kurtz of MyKBO.net tweets (Korean language link via Naver Sports). There will not be fans in attendance.

8:40am: Yoo details the abbreviated preseason at greater length in a second column, outlining the limited travel arrangement in place and the safety/testing precautions that the league will implement. Players will be tested twice prior to games, receive “strong” recommendations to wear masks throughout the stadium when not on the field and be prohibited from spitting (while being “discouraged” from celebratory high fives). Umpires will wear masks and gloves.

Players showing symptoms will immediately be quarantined and tested further. Their stadium would then be subject to a 48-hour closure. A positive test would result in a meeting with text executives throughout the league to determine whether a full stoppage of play is necessary.

April 19: An official announcement is expected Tuesday about the state of the KBO League’s schedule, Jee-ho Yoo of the Yonhap News Agency writes, as Korea’s top baseball league is preparing to begin play in early May.  League officials will meet with the presidents of each KBO team Tuesday, and it is still possible that the KBO could complete its usual 144-game schedule, with liberal use of double-headers and playing games on Monday (which is normally a league-wide off-day).

If a full season is played, the schedule would stretch into November, with postseason games in the latter half of the month played at a neutral venue — the domed Gocheok Sky Dome in Seoul.  The KBO preseason is set to begin on Tuesday, with teams playing four games before beginning regular season action in the first week of May (possibly even on May 1 itself).  All preseason games and regular season games in at least the first portion of the schedule will be played without fans in attendance, and it is possible fans could be allowed to watch games in person later in the year depending on the status of the COVID-19 pandemic.

Of course, all of the KBO League’s plans are dependent upon a continued decrease in coronavirus cases.  South Korea has showed good progress in this direction, as only eight new cases were reported in the country on Sunday, the lowest daily total in two months.  South Korea prime minister Chung Sye-kyun said today that general social distancing policies will remain in place until at least May 5, though “the degree of social distancing will be flexibly changed depending on the scope of transmissions.  The government will evaluate the risks every two weeks, and adjust the level of social distancing if necessary.”  In the meantime, some outdoor facilities, churches, restaurants, schools, and gyms could be allowed to open, assuming strict guidelines are followed for such public locations and gatherings.

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Union, League Spar Over Interpretation Of Agreement On Resumption Of Play

By Jeff Todd | April 20, 2020 at 7:56pm CDT

It had seemed that Major League Baseball and the MLB Players Association were largely seeing eye to eye on alterations to their preexisting agreements to account for the coronavirus pandemic. The sides struck a bargain in late March to account for numerous significant matters of concern, including part-season salaries.

[RELATED: MLB Player Contracts In A Shortened Or Canceled Season]

The unity may not be long-lived. With little prospect for hosting games with fans in attendance in the near term, league and union are now embroiled in a battle over the meaning of the deal they worked out less than one month ago.

Recent reporting indicated that MLB does not believe the recent agreement resolves the matter of player salaries in the event of TV-only games. Today, union chief Tony Clark announced that he holds precisely the opposite position, as Ronald Blum of the Associated Press reports.

The league claims the question of salary in a no-attendance season simply hasn’t been decided, pointing to a clause providing that the sides agree to “discuss in good faith the economic feasibility of playing games in the absence of spectators or at appropriate substitute neutral sites.” By this reading, the entire original agreement related only to the resumption of a typical season.

The player side says the agreement provides for a pro rata reduction of salary to match the number of games played, regardless of whether fans are in the stands. Clark tells Blum: “Players recently reached an agreement with Major League Baseball that outlines economic terms for resumption of play, which included significant salary adjustments and a number of other compromises. That negotiation is over.”

It’s not surprising that the sides would’ve found it hard to line up on this particular point. Playing without paying fans was obviously foreseeable, since it made it into the deal. Surely this didn’t sneak up on anyone.

But it’s frankly bizarre to see such a misalignment of expectations regarding an agreement that was only just negotiated. The actual dispute boils down to the question whether new negotiations over “economic feasibility” would involve a full reconsideration of player salaries or, rather, that such feasibility would take place regarding only other matters, with the salary issue already decided. It seems there are oddities in the positions of both sides, based upon what has been aired publicly.

In the framing of deputy commissioner Dan Halem, the original agreement was one in which the sides “agreed that the season would not commence until normal operations — including fans in our home stadiums — were possible.” If not, there’d be a need to negotiate a whole new “framework to resume play without fans.”

It may well be possible — even preferable — to read the agreement as the league suggests. But in that case, why not make it all the more explicit? We haven’t yet seen the full agreement in its finished form, but the elements that have been reported suggest it’s less than crystal clear in its structure. It also seems strange that the sides would’ve focused so much energy solely on the function of a “normal” season when that seemed so unlikely to occur.

At the same time, on the union side, it’s hard to imagine the potential ambiguity wasn’t spotted. If the MLBPA really believed the agreement ensured full salaries (on a game-by-game basis) regardless whether fans were in attendance, why would it have allowed such an “economic feasibility” proviso to inject doubt?

Could it be that both sides agreed to disagree? Perhaps, but if that was actually the mutual understanding, then why overlay contractual uncertainty onto the preexisting, underlying state of affairs? If instead one side or the other has been caught by surprise by the other’s interpretation, that’s equally hard to understand.

Perhaps we’re still just seeing posturing. But there’s no question the league and union still have significant issues to sort through in advance of a potential resumption of play, especially if (as seems exceedingly likely) it’ll occur without spectators.

This was always going to be complicated. Holding contests without fans will require tricky logistics, added costs and risks, and atypical economic calculations. And there’s already an important background consideration here. Remember that talk of the uniform player contract, which provides the commissioner power to “suspend” contracts “during any national emergency during which Major League Baseball is not played”? That’s clear enough in some instances. But it’s less obvious precisely how the contracts would be re-started. And what happens if the emergency declaration is formally lifted, but baseball doesn’t resume play … or does so on a modified basis? It’s hard to read this clause as providing that major economic interferences would mandate adjustments of already guaranteed salaries, particularly if there’s no formal nationwide emergency declaration.

There was already ample potential for interpretive disputes revolving around that language, the entirety of the Basic Agreement, and the broader bargaining relationship in these unusual circumstances. A mutually satisfactory resolution never seemed straightforward. And now, the presence of an intervening, already-disputed agreement may only add to the potential for friction.

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Latest On Payment Of Team Employees

By George Miller | April 20, 2020 at 1:40pm CDT

April 20: The Reds, Marlins and Red Sox are also committing to paying baseball operations employees through the end of May, per ESPN’s Jeff Passan (Twitter thread).

April 19, 9:20pm: The White Sox will also continue to pay employees through the least the end of May, 670 The Score’s Bruce Levine tweets.

2:57pm: MLB commissioner Rob Manfred is expected to announce on Monday a decision that will allow teams to furlough non-playing personnel or reduce their pay, according to Ken Rosenthal of The Athletic. Beginning May 1, MLB will suspend its Uniform Employee Contracts, allowing—but not requiring—teams to take such measures. The decision will affect a group that includes managers, coaches, some front office personnel, and others.

It’s important to note that some teams have already declared their intent to pay employees through the end of May. Others may still follow suit, but the goal of these measures is that “clubs facing the most significant financial duress” will be afforded some flexibility during the season delay. So the extent to which teams will make use of these measures is unknown, but the length of the delay will likely impact teams’ thinking.

The Braves, Phillies, and Giants have already committed to paying their employees through at least May, and the hope is that many more teams will opt to do the same. Phillies owner John Middleton expressed his confidence that games will take place this year, rendering layoffs and budget cuts unnecessary. And while there’s little certainty about the timeframe for baseball’s return, we hope that other owners will feel similarly in the near future. Indeed, USA Today’s Bob Nightengale tweeted yesterday that “most teams” are expected to make similar commitments.

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Derek Jeter Forgoing Salary Indefinitely; Other Marlins Execs Taking Pay Cuts

By Steve Adams | April 20, 2020 at 11:32am CDT

Marlins CEO Derek Jeter is forgoing his salary on an indefinite basis, SportsGrid’s Craig Mish reports (on Twitter). Other high-ranking Marlins executives have also taken pay cuts as the organization continues to evaluate the economic impact of the COVID-19 pandemic.

Additional cost-cutting measures that the Marlins’ executive and ownership club may take aren’t clear, but the cuts among some of the team’s brass will surely aid in avoiding layoffs and furloughs elsewhere in the organization. The news comes at a time when Major League Baseball is reportedly set to announce that clubs can begin to furlough or cut pay of non-playing personnel (e.g. coaches, scouts, executives). In late March, all 30 teams agreed to pay non-player employees through the end of April. MLB teams have also pledged $1MM apiece to help cover lost wages for gameday/park employees during the shutdown. Some teams have taken further steps to help cover those part-time wages.

The impact that pay reduction among club leadership will have throughout the organization can’t yet be known, but it’s nevertheless a notable gesture. It’s easy to cynically say that Jeter can afford to do so — indeed, he earned more than $265MM in player salaries during his career and was able to purchase a minority stake in the Miami franchise — but that much is true of many owners and high-ranking executives who have not opted to do so (both in and outside of baseball).

It’s of course possible that other clubs have already taken similar measures — top Rangers execs were reported to be taking cuts earlier this month — or that they’re prepping to do so in the near future. But it also seems inevitable that the economic weight of the pandemic will be felt throughout the league as uncertainty regarding the state of play persists.

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Report: Owners Could Pursue Further Salary Reduction For Players If Season Begins Without Fans

By Steve Adams | April 16, 2020 at 3:05pm CDT

As Major League Baseball ponders various scenarios in which the 2020 season could commence in empty parks without fans in attendance, Ken Rosenthal and Evan Drellich of The Athletic write that empty-stadium games could prompt ownership to ask that the players make further concessions in terms of their 2020 salary.

The two sides already reached an agreement on service time, player salaries and a broad framework for an abbreviated draft late last month. Within that agreement, players agreed to prorated salaries that are directly proportional to the reduction of total games played.

Rosenthal and Drellich suggest, however, that the league “made it clear to the union that economic adjustments would be necessary if games were played in empty parks,” while many on the players’ side of talks believe that the already standing agreement addressed games without fan and/or games at neutral sites. Unsurprisingly, agent Scott Boras ardently pointed to the preexisting “good faith agreement” regarding empty-stadium play while implying that seeking further reductions would be in violation of said good faith.

It seems rather perplexing that the players wouldn’t have pursued precise language expressly underscoring that even neutral-site games without fans in attendance should fall under the purview of the currently agreed-upon salary reduction parameters. That agreement, after all, was unanimously ratified by all 30 owners back on March 27. At that point, the idea of televising games without fans was already widely being speculated upon and surely being discussed by the league and MLBPA. Word of the potential “Arizona” plan trickled out not two weeks after that agreement had been settled.

The owners’ claim in all of this would undoubtedly be that addition of television revenue would not be enough to cover the cost of operations in conjunction with the elimination of gate revenue. Such claims wouldn’t be able to be proven with books closed to the public, but it’s easy to see all 30 owners aligning on that front whether or not the sentiment holds true in actuality.

At this point, all parties involved are flying blind for the most part, as there’s not yet any certainty regarding when or if play will resume, where games will take place or how many games could be played. There’s also been talk of expanding the postseason format, which would create additional revenue on all sides that wouldn’t otherwise exist. Without those details set in place, fiscal specifics are impossible to glean. All of those issues will factor into further negotiations — if it is indeed determined that the existing language leaves ownership ample latitude to pursue such reductions. It’s easy to imagine a contentious set of secondary negotiations eventually being necessary once the logistics can be more clearly defined, though.

At least as pertains to the 2020 season, commissioner Rob Manfred wields the ultimate hammer, as his position gives him the right to unilaterally suspend player contracts due to the declaration of a national emergency. While one would hope that negotiations wouldn’t get to that point, the threat of such extreme action could indeed be powerful leverage against the MLBPA.

All of this comes at a time when the current collective bargaining agreement is set to expire in December 2021. Advance collective bargaining talks were already reported to be in place well before the COVID-19 pandemic emerged. Any rising tensions that stem from further back-and-forth on more immediate issues figure to impact those CBA negotiations whenever they resume in earnest.

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Latest News & Notes On MLB & Coronavirus

By Jeff Todd | April 16, 2020 at 1:03pm CDT

There’s renewed hope in the struggle of Athletics minor-league coach Webster Garrison against COVID-19, as Susan Slusser of the San Francisco Chronicle relays via Twitter. Garrison required the support of a ventilator for over three weeks before finally being extubated today. You can read more on his story from the outset of his hospitalization here. While Garrison obviously still faces a tough road to a full recovery, it’s much-welcomed good news. MLBTR extends its best wishes to his family, friends, and colleagues.

More notes on the coronavirus crisis relating to the baseball world …

  • The state of Arizona is at least open to considering hosting the 2020 MLB season, as Nick Piecoro of the Arizona Republic reports. Whether that’ll prove feasible or desirable from the league and union perspective remains to be seen, but state willingness would certainly be one of many preconditions to making out a workable plan. Governor Doug Ducey says that Arizona is “very open-minded to hosting whatever Major League Baseball would like from the state,” though only at such time as it is “appropriate for public health if Arizona were in a position to reopen.”
  • Maury Brown of Forbes examines the difficulties that Major League Baseball faces — and some of the possible financial solutions it could pursue. In particular, Brown posits that lost revenues — the full scope of which aren’t yet known but which are sure to be massive — could spur MLB commissioner Rob Manfred to press forward with long-pondered plans for expansion. That could also dovetail with the minor-league realignment efforts the league had already launched. Kevin Reichard of Ballpark Digest wrote recently about the fact that new MLB clubs would need additional minor-league clubs. As Brown explains it, MLB could clean house on certain existing affiliates and then “quickly whip around and expand into markets where state-of-the-art ballpark facilities could be built,” while also collecting “some form of expansion fees.”
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Union Chief Tony Clark On Returning To Play

By Jeff Todd | April 16, 2020 at 8:04am CDT

MLBPA chief Tony Clark spoke with Bob Nightengale of USA Today about the union’s stance on returning to play in 2020. His comments focused primarily on the pervasive ongoing uncertainty, but Clark also says he’s remaining optimistic.

On the one hand, there’s nothing new here. As Clark acknowledges, the course of the scientific, social, and political response to the virus will dictate what baseball can do and when.

“We don’t have the answers, and we don’t expect those to come anytime soon,” Clark explains.

At the same time, it’s important to understand where the chief decisionmakers stand on these matters. Clark echoed MLB commissioner Rob Manfred regarding the need to consider first the broader public needs. Testing availability is critical, he said, but “it can’t be at the expense of public testing.” And it must be determined how the virus “can be mitigated in the public arena as much as the professional arena.”

While there’s a lot of overlap in league and union interests — everyone wants to be a positive force and to get revenue moving again — there are obviously quite a few differences in situation. Playing in empty stadiums won’t be a problem, Clark says. And the union side is willing to consider some experimental measures to make things interesting and accommodate a compressed schedule.

But what of the much bigger potential issues? There’s agreement in the near term on the rules regarding player contracts, but what will happen to long-term guarantees and upcoming free agent and arbitration cases? And will players be willing to live apart from families and accept other restrictions on their personal lives if that proves necessary to holding a season?

Clark says “it would be premature to have that discussion” and adds that he doesn’t intend “to negotiate through the media.” Ultimately, he says, the concepts that have been discussed to this point lack “depth” and feature “too many assumptions” to be addressed in detail.

“Once we find ourselves in discussions with the league in terms of options and variations, we in turn can present those ideas to the players, and the players can decide what makes most sense,” Clark explains.

One of the most interesting matters coming down the pike hasn’t yet been addressed by Clark or Manfred: the expiration of the collective bargaining agreement in 2021. There was prior chatter of an early initiation of negotiations, so the sides have already been thinking about things. The present crisis has obviously required difficult modifications to the present bargaining period. It will also change the parameters of the next one. As league and union make difficult tradeoffs now, they’ll surely be considering the impacts and perhaps even beginning negotiations regarding their next overarching agreement. At the same time, sudden and vast uncertainty will make it all the more challenging to think through the future.

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The Next MLB Season: Time To Get Weird

By Tim Dierkes | April 16, 2020 at 1:48am CDT

When live Major League Baseball resumes, what kinds of experiments might we see?  What will the offseason look like?  How will the coronavirus affect the 2021 season?  Today, I make my MLB Trade Rumors video debut in a discussion about these topics with Jeff Todd.

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