line of credit loans for bad credit canadian reloadable prepaid credit cards marriott rewards credit cards reviews free balance transfer credit cards no fee rent wireless credit card machine citifinancial credit card contact number chase credit card services pay online how to check tesco credit card points hdfc credit card payment information hdfc credit card balance transfer chase freedom credit card ratings pay my first premier credit card bill credit card application referred for review how to start an online payday loan business does walgreens sell prepaid credit cards application for credit cards online reward cards ks2 gold delta skymiles credit card canada i don;t have any credit how do i get a credit card payday loans uk direct lenders chase pre approved credit card low interest credit card balance transfer life does chase bank have a student credit card payday loans bad credit ok direct lender american express corporate credit card customer care number what credit card is best for me rbc visa canada credit card best reward credit cards 2012 canada what is an issue number on a credit card visa debit virgin money credit card contact number sbi credit card apply online southwest rapid rewards business credit card quick online loans for unemployed approved cash advance store hours long term online loans south africa credit card payment app for ipad which bank easiest to get credit card master credit card number generator application for reissue of credit card list of all credit cards for bad credit td us visa card benefits chase credit cards rewards redemption chase credit card visa customer service standard chartered credit card promotions sri lanka credit card magnetic strip protector sleeve westpac credit card balance transfer rate 10 best online payday loans orchard credit card phone number hsbc amanah credit card balance transfer hdfc platinum master credit card offers what happens when a credit card company sues you visa card services online instant approval business credit cards old orchard bank credit card payment paypal vs credit card conversion rates credit cards longest interest free period student credit cards with no credit no cosigner best no fee visa credit card canada payday loan online canada credit card insurance uk absa credit card fraud insurance best rewards credit card 2013 uk standard chartered online credit card payment online how to accept credit cards on iphone 4 0 intro apr business credit cards tesco clubcard credit card lost stolen 3d secure credit card us bank credit card comparison tool manual credit card machine canada list of all chase credit cards is credit card protection insurance necessary intuit credit card scanner for ipad visa cash back cards canada capital one uk credit card login fixed rate credit card calculator best credit card bad credit unsecured credit cards with airmiles and no annual fee citibank business credit card contact credit card terminal for ipad inner fence list of premium credit cards in india cash rewards gas credit cards credit cards deals usa need a credit card credit card protection on purchases via paypal get a no credit check credit card best buy credit cards contact number best credit card to earn air miles singapore preloaded credit cards for international travel chase visa card lost icici bank credit cards e statement axis bank credit card apply phone number best credit card protection plan best rate credit cards canada mastercard uk management services ltd walmart credit card payments online credit card review singapore is magnum cash advance legal chase credit card no interest for a year where can i buy reloadable prepaid credit cards loft mastercard credit card payments credit cards after bankruptcy discharge 2012 how do credit card interest rates differ by company define the strategies credit card apply online in chennai create virtual paypal credit card shell gas credit card offers low interest credit cards balance transfer canada td visa card expires corporate credit card policy santander visa card issue number check debit visa card balance best small business credit cards for fair credit greenwoods personal credit gold card sears secure credit card login fast cash loans online lenders toys r us gold card change of address visa credit card for bad credit canada british airways visa card uk reducing credit card debt yourself fixed low rate credit cards canadian credit cards comparison ocbc great eastern credit card application form international credit card provider in bangladesh indusind bank credit cards offers 70 000 mile american express delta credit card best visa card manual credit card machine instructions bad credit visa cards australia top 25 credit card processing companies desjardins visa student credit card lloyds tsb credit card charges abroad chase credit card merchant services standard chartered online credit card payment pakistan i need a credit card to build my credit low fixed rate for life credit cards best credit cards for bad credit score myfico credit card finder credit card history check credit card rewards programs australia i need to apply for a visa credit card cancel cibc credit card online ace payday loans reviews gap visa card make payment best personal online loans cash advance payday loans scams how to get a credit card with no credit history yahoo answers hdfc credit card login bill payment online how to get free credit card information uk credit cards for new immigrants credit card machines for iphone uk legacy visa credit card application status credit rewards cards travel commonwealth bank credit card interest rates wells fargo business credit card machine kohls credit card pay which credit card offers the best cash back reward visa credit cards for college students reward credit card uk what is cash advance interest rate credit cards with free worldwide travel insurance prepaid credit card australian dollars best credit cards in canada credit limit increase capital one mastercard sbi platinum card annual fee new payday loans like wonga best corporate credit cards rewards apply for credit card credit union aib visa debit cards hsbc premier credit card rewards uk home depot canada credit card application sbi credit card application form status average credit card fees for business credit rating agencies best airmiles credit card usa what is a credit card that offers a 0 transfer balance secured credit card offers for bad credit td visa infinite cash back will a secured credit card help your credit what is my minimum credit card payment myer visa card fees need a credit card to rebuild credit walmart credit card account login best buy credit card app status compare credit cards india how do you calculate interest on credit card balances payday loans no fees unemployed city bank credit card login page corporate credit card credit check www.chase.com/creditcards online payment walmart credit card 20 cash back best credit cards for students with no income interest free credit card transfer offers best air miles rewards credit card canada get pre-approved for chase credit card best ways to pay off credit card debt reloadable visa cards uk bestbuy credit card credit card limit increase good or bad my prepaid credit card canada post black cardamom tea obama credit card debt relief grant is there an app for walmart credit card bsnl to vodafone balance transfer best business travel credit card canada credit card numbers that work prepaid credit cards canada review capital one balance transfer rates existing customers womens black cardigan sweater can you get cash from a prepaid visa card random credit card number and name what is a credit card cvv cheap interest payday loans online credit card balance transfer comparison calculator uob credit card shell promotion walmart prepaid visa card canada how to hook up a verifone credit card machine android credit card app uk halifax 22 month balance transfer credit card dubai first credit card payment chase united plus credit card login military pay advance pcs sear credit card login citi tips on how to pay off credit card debt fast unsecured business cash advances capital one credit cards no foreign transaction fees nfinanse prepaid debit visa card uk payday loans with bad credit free virtual credit card for paypal verification chase credit card apr cheapest virtual credit card terminal best platinum credit cards uk wells fargo credit card rewards mortgage free credit report no card details required new credit card fees in canada student credit card for students with bad credit pay bank of america credit card at branch credit card with no annual fee for bad credit compare reward credit cards australia shell credit card login iphone credit card case best buy best buy rewards credit cards payment military pay advance rules new credit card rules for stay at home parents which is the best credit card for students with no credit history i have bad credit and want to get a credit card fast easy cash loans south africa hsbc credit card balance transfer promotion apply for capital one platinum credit card credit card limit calculator hdfc iphone credit card case 5 best delta rewards credit card major credit card logos for website credit card fraud uk statistics credit card for bad credit no credit check personal loan calculator bad credit black credit card natwest what is the credit score range for american express card mastercard amazon 10 off 100 reset verifone credit card machine travel rewards credit card with no annual fee credit card payment processing bad credit cash loans online short term loan bad credit history apply credit card online abn amro 500 fast cash loans prepaid credit cards canada bankruptcy can i get a credit card without having a job is closing a credit card account bad for your credit score loans for bad credit and no debit card pay circuit city credit card 4 major credit cards companies is magnum cash advance legal in florida intuit small business credit card processing top 5 credit cards in india 2012 chase credit card rewards gift cards best credit card for students traveling abroad top ten best credit cards to have what are good apr rates for credit cards apply for visa student credit card td canada premium credit cards who has best credit card reward program direct payday loan lenders no brokers visa prepaid credit card usa credit card charges ez payday advance watertown sd bankruptcy credit cards bad credit loans no fees consumer reports best credit card balance transfers jcpenney rewards credit card payment address do i need a credit card for itunes match how fast does a secured credit card help your credit square credit card reader ipad 2 credit cards for average credit no annual fee unsecured loans with bad credit australia best travel points credit card canada 2013 credit card payment machine hire cash advance direct lenders for bad credit us bank secured business credit card cheapest credit card transfer rate hdfc credit card status complaint very bad credit loans no guarantor no broker online payday loan scams review do you need a credit card for itunes match visa credit card offers small business credit cards with high limits tips for getting a first credit card apply for a visa credit card with no credit history hdfc credit card settlement process instant online no fax payday loan tips for getting a credit card with bad credit 12 month 0 balance transfer no fee best business credit card canada 2012 government small business loans with bad credit i need a bad credit loan of 5000 aspire credit card hdfc credit card apply halifax student credit card terms and conditions credit cards apply online icici vanquis credit card contact number abroad how to get verified on paypal without a bank account or credit card loans you can pay back monthly sbi international credit card charges credit card comparisons australia walmart pre approved credit card offers hdfc credit card loans test credit card visa number accept credit card payments mobile portable credit card terminal rental citibank online credit card application status india td visa card activation number compare cheapest credit card rates dcu visa platinum secured credit card reviews granite credit card online statement accepting credit cards with paypal iphone credit card case kickstarter hdfc credit card payment online from sbi credit card best credit cards for college students with no income bdo credit cards online application bad credit credit card offers very bad credit car leasing aqua student credit card review how to get a us dollar credit card in canada best chase credit card offers 2013 delta miles credit card login is there a secured credit card with rewards unsecured credit card with no credit check fixed rate credit cards definition old fashioned credit card machine united miles credit card deal british airways credit card offer online application for credit card philippines what does pdq credit card machine stand for 0 on cash advances on credit cards credit card reviews canada 2012 loans for bad credit uk credit card calculator excel template what is the best credit card deal for balance transfers sallie mae pay loans fast cash loans online south africa first premier bank credit card for bad credit reviews cheapest credit card terminal rates quick cash loans for unemployed uk walmart credit card number phone best visa credit card usa which credit card is best for international students best credit cards to use in the uk different types of bank of america credit cards how do i find my usaa credit card pin gas credit cards for poor credit reporting credit card settlement to irs bad credit loans compare the market natwest business credit card helpline apply for a student mastercard credit card best cashback credit cards with annual fee nedbank platinum card requirements secured credit cards to rebuild credit google wallet credit card security united mileage plus credit card uk guaranteed unsecured credit card for bad credit companies that reduce credit card debt minimum age to apply for credit card in canada state bank of india apply online credit card cash advance loans direct lenders only credit card prime rate definition credit card 0 balance transfer to current account activate vanilla visa card nordstrom credit card visa signature direct payday loan lenders only no teletrack walmart credit card approval time free credit card logos vector no credit check payday loans direct lender lowest credit card rate in us purchasing bad credit card debt citibank virtual credit card download sign up for a free visa credit card apply for credit card visa online prepaid visa credit cards india can i get a credit card with no credit rating loan with bad credit history india best airline rewards credit cards 2011 i need a credit card asap bad credit best credit card transfer balance offers should i get credit card protection i don;t want a credit card va loan with bad credit score legit payday online loans credit card business loans credit card minimum payment affect credit score hdfc bank credit card help desk payday cash loans online first capital connect annual gold card bad credit payday loan lenders online best wifi credit card terminal what is the best prepaid credit card for online use credit card to earn air miles singapore canadian credit cards with travel insurance credit card interest free period australia prepaid virtual credit cards usa working visa card generator usaa college credit card review nedbank credit card limit increase hdfc credit cards reward points catalogue credit card visa mastercard number best starter credit cards for college students best online payday loans uk hsbc best buy credit card reviews united airlines credit card good deal is a secured credit card a good way to rebuild credit what does your credit score need to be to get a best buy credit card best portable credit card scanner get paypal credit card uk hdfc gold credit card apply online virgin 0 credit card balance transfers what credit cards companies only use experian free high risk credit cards i have no credit what credit card can i get united mileage plus club credit card review credit card with 0 interest on balance transfers for 12 months what is the best secured credit card to get in canada gnc gold card uk what is the best visa credit card to get capital one venture rewards credit card review post office credit card contactless delta credit card offer payday lenders uk 2013 small cash loans with bad credit cash converters payday advance pretoria can you transfer a personal loan to a credit card hdfc online credit card payment india compare credit cards for business what does your credit score have to be to get a sears card how do payday cash advances work american express reward credit cards credit score range credit card approval ikea credit card application online usa prepaid international credit card visa american express platinum credit card travel insurance discover credit card in canada citibank credit card apply hdfc flight offer credit card money back credit cards uk natwest credit card customer services contact number us bank credit card standard chartered credit card malaysia chase mastercard credit card activation phone number hdfc credit card reviews india nedbank apply online for a credit card government of canada credit card regulations free credit card reader for ipad best credit cards to apply for with bad credit shell drive for five credit card login store credit cards with instant approval change mastercard securecode pay hdfc bank credit card bill online zurich credit card insurance reviews secured credit card reviews 2012 best credit cards for good credit scores american express corporate credit card india login hsbc credit card balance transfer offers instant virtual credit card online comparing credit cards canada online tracking of icici credit card status best rate credit cards 2013 application for credit card indian bank small personal loans with bad credit how to hack a credit card number visa 2012 nab credit card balance transfer offers can you get cashback on visa gift cards bank of ireland credit card insurance on purchases which credit card is easy to get approved in australia short term loans online ireland capital one prepaid credit card credit card consolidation loan calculator citibank credit card loan emi calculator credit card rate comparison australia credit card online validator 2.11 what is the best student credit card to get hsbc credit card online application malaysia best installment loans online cash payday loans fast credit card points
Home MLB News

Like Shoot to Thrill - An AC/DC Tribute on Facebook!

An authentic tribute of AC/DC that covers the best of the Bon Scott era and the best of Brian Johnson's material

Who's Online?

We have 668 guests online

Atom RSS

feed-image Feed Entries
MLB News
Breaking Down Bonus Money for the 2012 MLB Draft PDF Print E-mail
User Rating: / 80
PoorBest 
Written by Maury Brown   
Monday, 04 June 2012 20:08

Major League Baseball is holding their 2012 First-Year Player Draft Monday evening. As Commissioner Selig is presiding over the event, the playing field this year is unlike any other.

As part of the latest labor deal between the league and the union for the players, MLB negotiated a system by which each club gets an assigned amount that they can spend on bonuses. It isn’t a hard-cap where the amounts are fixed rather, there is a total pool of signing bonus money that clubs can work within across their picks. That amount fluctuates depending on win-loss record in the previous season, etc. Here’s a high-level view of how it works:

  • The signing bonus pools range from $1.7 million (Angels) to $12.4 million (Twins), which is unique to this year because the new system was layered on top of the old free agent draft pick compensation system for this year.
  • The pools are based on the number of picks, including compensation picks, and last season's record.
  • The more picks a club has, the larger the pool becomes that the club will have to work with.
  • The size of the pools will standardize more from club to club after next year’s class of free agents.
  • The size of the pools will be dependent on the number of picks a club has in a given year and where those picks fall within each round. A club with the first pick of the Draft will have the largest pool.

Clubs can choose to ignore the total amount and go over their allotted amount, but there’s a catch—a “Luxury Tax” that clubs get hit with if they do so. Here’s how that works:

Clubs that exceed their Signing Bonus Pool in the 2012-2013 signing period and/or 2013-2014 signing period will be subject to the following penalties:

a. 0-5% in excess of Pool—75% tax on all of the Pool overage.

b. 5-10% in excess of Pool—75% tax on all of the Pool overage and loss of right to provide more than one player in the next succeeding signing period with a bonus in excess of $500,000.

c. 10-15% in excess of Pool—100% tax on all of the Pool overage and loss of right to provide any player in the next succeeding signing period with a bonus in excess of $500,000.

d. 15% or greater in excess of Pool—100% tax on all of the Pool overage and loss of right to provide any player in the next succeeding signing period with a bonus in excess of $250,000.

Note: If a Club exceeds its Signing Bonus Pool, and it does not possess the draft picks subject to forfeiture as a result of being penalized in a prior year under the agreement, it will forfeit the designated draft picks in the next draft in which it possesses the relevant picks.

So, who has what to spend? According to Jonathan Mayo of MLB.com, the following is how much each club has to work with:

Team

Total

Picks

Avg.

Twins

$12.4m

13

$951k

Astros

$11.2m

11

$1.0m

Padres

$9.9m

14

$707k

Cardinals

$9.1m

14

$652k

Blue Jays

$8.8m

14

$631k

Athletics

$8.5m

13

$651k

Mariners

$8.2m

11

$748k

Cubs

$7.9m

12

$661k

Mets

$7.2m

12

$596k

Red Sox

$6.9m

12

$574k

Orioles

$6.8m

10

$683k

Brewers

$6.8m

12

$564k

Reds

$6.7m

12

$554k

Rockies

$6.6m

12

$552k

Rangers

$6.6m

13

$505k

Pirates

$6.6m

11

$597k

Royals

$6.1m

10

$610k

White Sox

$5.9m

11

$538k

Dodgers

$5.2m

11

$473k

Marlins

$4.9m

10

$494k

Phillies

$4.9m

12

$410k

Indians

$4.6m

10

$458k

Nationals

$4.4m

10

$444k

Yankees

$4.2m

11

$381k

Giants

$4.1m

10

$408k

Braves

$4.0m

10

$403k

Rays

$3.9m

10

$387k

Diamondbacks

$3.8m

10

$382k

Tigers

$2.1m

9

$233k

Angels

$1.7m

8

$206k

Source: MLB.com

There’s a lot more to take in.Take in a summary of MLB’s new labor agreement. Better yet, read MLB’s 2012-16 CBA in full. But, the idea is simple: allow for more economic parity by tamping down on the amount clubs pay out in bonuses while not putting in a hard-cap. Already there has been talk that maybe the system isn't without its flaws. Stanford's Mark Appel, who most analysts thought would go #1 to the Astros dropped all the way to #8 where the Pirates picked him. Who represents Appel? Super-agent Scott Boras.


Maury BrownMaury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He writes for Baseball Prospectus and is a contributor to Forbes SportsMoney blog.. He is available as a freelance writer. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network (select his name in the dropdown provided).

Follow Maury Brown on Twitter Twitter

Follow The Biz of Baseball on TwitterTwitter

FacebookFollow the Business of Sports Network on Facebook

 
2012-16 Major League Baseball CBA Released to Public PDF Print E-mail
User Rating: / 134
PoorBest 
Written by Maury Brown   
Thursday, 24 May 2012 00:00

It took 183 days, but Major League Baseball and the MLB Players Association have finally finished all the details of the latest Basic Agreement that will run from 2012 through 2016.

The agreement—possibly the most sweeping, ever—was reached on Nov. 22nd of last year. The labor agreement sees everything from two additional playoff teams, a Luxury Tax and other changes to the Amateur Draft, and HGH testing as part of the separate drug agreement, just to name a few.

Some details that were not detailed prior when a summary was released of the memorandum of understanding last Nov.

The agreement has an expansive section on International Play

On the Competitive Balance Tax (CBT), otherwise known as the Luxury Tax, changes will make it harder for those that break the thresholds repeatedly, by increasing the amount paid to as high as 50 percent. Here’s the breakdown:

(a) For a Club that has an Actual Club Payroll above the Tax

Threshold in the 2012 Contract Year, the applicable Competitive

Balance Tax rate shall be:

(i) 20% if the Club did not exceed the Tax Threshold in the 2011 Contract Year;

(ii) 30% if the Club’s Competitive Balance Tax rate in the 2011 Contract Year was 22.5%;

(iii) 40% if the Club’s Competitive Balance Tax rate in the 2011 Contract Year was 30%; and

(iv) 42.5% if the Club’s Competitive Balance Tax rate in the 2011 Contract Year was 40%.

(b) For a Club that has an Actual Club Payroll above the Tax

Threshold in the 2013, 2014, 2015, or 2016 Contract Year, the applicable Competitive Balance Tax rate shall be:

(i) 17.5% if the Club did not exceed the Tax Threshold in the preceding Contract Year;

(ii) 30% if the Club’s Competitive Balance Tax rate in the preceding Contract Year was 17.5% or 20%;

(iii) 40% if the Club’s Competitive Balance Tax rate in the preceding Contract Year was 30%; and

(iv) 50% if the Club’s Competitive Balance Tax rate in the preceding Contract Year was 40, 42.5%, or 50%.

Details on whether there will be an International Draft are also part of the agreement as an attachment. As a matter of upcoming dates on the calendar and activities that would have to occur for an International Draft to take place, the following is part of the attachment:

No draft of international amateur players may be implemented in 2013 unless the following conditions are satisfied by June 1, 2012:

1. A new agreement is reached with the Mexican League consistent with paragraph I.D.10 above.

2. The protocol agreements with the Korean Professional Baseball League, the Japanese Professional Baseball League, and the Taiwan R.O.C. are revised, consistent with paragraph I.D.11 above.

3. A league and/or additional DSL teams to provide playing opportunities for undrafted/unsigned players are organized to begin play no later than June of the year in which a draft covering international amateurs is scheduled to begin.

4. The country-by-country plans referred to in paragraph D.4 above have been completed for the countries of origin of at least 85% of the international players signed in 2011.

5. Appropriate understandings are reached with government officials in the Dominican Republic (and other countries as necessary).

6. Agreement is reached on a procedure for regulating representatives of international amateur players.

F. If it believes that the conditions listed in paragraph I.E above have been achieved by June 1, 2012, the Office of the Commissioner may give notice that it intends to commence operation of a draft (or drafts) covering international amateur players for the 2013 season and subsequent seasons. Written notice of such intent must be provided to the MLBPA by no later than June 15, 2012, and such notice must include a detailed explanation of the rules and procedures that the Office of the Commissioner intends to use for the draft. The MLBPA may veto the commencement of a draft (or drafts) covering international amateur players for the 2013 season and subsequent seasons by providing written notice of its objection to the Office of the Commissioner by July 1, 2012.

G. If a draft (or drafts) covering international amateur players does not commence in the 2013 season, and irrespective of whether the conditions set forth in I.E have been satisfied, the Office of the Commissioner may provide notice to the MLBPA that it intends to commence operation of a draft (or drafts) covering international amateur players for the 2014 season and subsequent seasons. Written notice of such intent must be provided to the MLBPA by no later than June 1, 2013, and such notice must include a detailed explanation of the rules and procedures that the Office of the Commissioner intends to use for the draft. The MLBPA may veto the commencement of a draft (or drafts) covering international amateur players for the 2014 season and subsequent seasons by providing written notice of its objection to the Office of the Commissioner by June 15, 2013.

The current CBA expires on Dec. 1, 2016.

There is much, much more that we’ll detail over several articles now that the document is fully available. You can see all 311 pages of it here:

READ THE 2012-16 MLB CBA IN ITS ENTIRETY


Maury BrownMaury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He writes for Baseball Prospectus and is a contributor to Forbes SportsMoney blog.. He is available as a freelance writer. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network (select his name in the dropdown provided).

Follow Maury Brown on Twitter Twitter

Follow The Biz of Baseball on TwitterTwitter

FacebookFollow the Business of Sports Network on Facebook

 
Fitch Rates MLB as A- and Stable, Increases Credit Line PDF Print E-mail
User Rating: / 18
PoorBest 
Written by Maury Brown   
Wednesday, 16 May 2012 15:06

MLBIn a sign that MLB is economically stable and that changes in the latest CBA should allow that prosperity to continue, Fitch Ratings has announced that it has increased Major League Baseball's Club Trust Securitization's $300 million to its senior secured credit facility 'A-'. Additionally, Fitch has affirmed the 'A-' rating on the outstanding $842 million term notes (series 1 - 7 maturing through 2021) and the outstanding senior secured credit facility ($500 million total including the $300 million increase). Fitch gave its Rating Outlook as “Stable.“

Fitch gave several reasons for the ratings increase, which bodes well for MLB’s overall economic health:

  • Solid Underlying League Economics: Debt service supported by large contractual revenue streams from investment grade counterparties. A new five-year collective bargaining agreement (CBA) that includes some additional strengthened core elements that promote financial stability and competitive balance. MLB continues to maintain a stable domestic fan attendance and viewership base and growing international fan base.
  • League Oversight and Governance: League's demonstrated willingness to step in and aid 'distressed' franchises. For example the league assisted the Texas Rangers and Los Angeles Dodgers during ownership issues.
  • Solid Legal Covenants and a Demonstrated Bankruptcy Remote Structure: Structural provisions ensure timely debt service. The MLB Club Trust structure utilizes a bankruptcy-remote securitization of pledged revenues consisting of long-term national broadcast partners in place through 2013. Noteholders benefit from the bankruptcy remote structure, which eliminates team related risks; however, they remain subject to all the fundamental operational risks of MLB.
  • Long History of Television Contracts: Current television contracts run through 2013 with ESPN (Disney; rated 'A' with a Stable Outlook by Fitch), FOX Broadcasting Company (NewsCorp.; rated 'BBB' with a Stable Outlook) and Turner Broadcasting System (TBS) (Time Warner, Inc; rated 'BBB' with a Stable Outlook).
  • Refinancing Risks Expose Teams to Potentially Higher Costs: The bullet maturities associated with the notes and bank renewals associated with the revolving credit facility expose the teams to potentially higher interest costs.

Fitch cited that a ratings action that could possibly push the rating down would be “a significant decline in national television contact rights fees,” which given the current market for media rights deals would be “unlikely.”

The transaction will increase the principal amount of the existing revolving credit notes issued by MLB Trust to $500 million from $200 million under the same terms.

A key part of the ratings change means that clubs will be able to access more money through the league’s credit facility. The increase to the existing revolving facility will also increase of the maximum amount of facility debt to approximately $75 million for participating clubs that are debt service rule (DSR) compliant and approved by MLB. Currently, most of the participating clubs are limited to approximately $55 million of facility debt per club.

MLB clubs will now be subject to the aforementioned DSR based earnings before interest taxes depreciation and amortization (EBITDA) during the most recent year. Under the new agreement, the rule for leverage will now be 8 times (x) EBITDA (and 12x EBITDA for any club which has incurred stadium-related debt to finance construction of a new ballpark or major renovation in the last 10 years). Under the prior agreement MLB's debt service rule of 10x and 15x EBITDA, respectively, was viewed as high. Fitch views the lower leverage thresholds and the oversight of the Commissioner's Office to enforce compliance with the DSR favorably.

Fitch added:

MLB's performance over the last few years during the U.S.'s uncertain economic conditions is a testament to the expected stability and demand for professional baseball in the U.S. and internationally. In 2011, attendance grew approximately 0.5% to 73.4 million after attendance declines in 2008 - 2010 following MLB's record high in 2007 of 79.5 million. Overall, 2012 season-to-date attendance is tracking around 6% higher than 2011. However, Fitch notes some markets that face a combination of severely weakened local economic conditions and lackluster on field performance have seen moderate declines while other teams have performed far better.

Additionally, Fitch notes stability in television viewership over the past decade as a key rating factor. Year-to-date viewership across nationally televised games on FOX, ESPN, TBS and local media broadcasts has been mixed; however, variations are typical early in the season given changes to match-ups year-over-year. MLB's national television contracts currently come due in 2013. Given recent positive trends associated with national television contract renewals in professional sports leagues and on the local level, Fitch expects positive renewals in MLB. Fitch will continue to monitor attendance and viewership levels throughout the season.

Fitch positively views MLB's economic model and financial policies, although a wide disparity exists between the revenues generated by the largest and smaller teams. A team's reliance on local revenues, which fluctuate significantly between small and large markets, and their discretion to spend unreservedly on player salaries can result in greater financial disparity among MLB teams. This disparity has the potential to lead to a less competitive framework for MLB. However, Fitch acknowledges that this disparity is partially mitigated by a revenue sharing transfer in excess of $400 million for 2011. Additionally, Fitch recognizes MLB's long history of viability in good and bad economic times and, more recently, the diversity of MLB clubs that have participated in the postseason since 2000 as important mitigating factors. Furthermore, Fitch notes, despite the range of financial disparity among participating clubs, noteholders are insulated from team level operations given their rights to national broadcast contracts to service debt prior to distributions to teams for operations.

While some teams are facing increased financial pressure due to weak economic conditions impacting attendance levels as well as corporate spending levels on sponsorships and advertising, those teams may be partially insulated in the near term by the high percentage of multi-year contractually obligated stadium-based income streams from luxury suites, club seats, sponsorship and advertising agreements and local broadcasting deals. Nevertheless, potentially lower renewal levels of key revenues at the league and individual team levels, should economic conditions worsen, would financially constrain the league and member teams. A key offset to softening stadium revenue growth include recently signed new and/or extended local broadcasting agreements that are expected to provide additional revenues to support underlying financial stability.


Maury BrownMaury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He writes for Baseball Prospectus and is a contributor to Forbes SportsMoney blog.. He is available as a freelance writer. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network (select his name in the dropdown provided).

Follow Maury Brown on Twitter Twitter

Follow The Biz of Baseball on TwitterTwitter

FacebookFollow the Business of Sports Network on Facebook

 
MLB Fires Longtime Arbitrator, Shyam Das PDF Print E-mail
User Rating: / 14
PoorBest 
Written by Maury Brown   
Monday, 14 May 2012 23:49
Das
MLB has fired impartial arbitrator,
Shyam Das

Major League Baseball has fired longtime independent arbitrator Shaym Das who had been selected to resolve certain labor issues as part of the Collective Bargaining Agreement. Das had been the impartial arbitrator for labor matters between the league and union since 1999. According to The Associated Press, MLB informed Das and the MLB Players Association of the decision last week. The CBA makes provisions for how arbitrators are part of several processes within the player/management relationship. Das ruled over several key rulings, most recently overturning the 50 game suspension of NL MVP Ryan Braun, which the league was extremely upset about going so far shortly after the ruling to leave the possibility of taking the case to Federal Court up in the air. The league opted not to do so, but the ruling set a precedence that played a role in rescinding the 100-game suspension issued to catcher Eliezer Alfonzo on September 14, 2011. As a statement from MLB on Monday said of the joint decision by MLB and the MLBPA to rescind the suspension, “Alfonzo’s grievance challenging his suspension raised issues that were nearly identical to those resolved in the Arbitration involving Ryan Braun.” The league then added that, “It is not anticipated that any other future cases will be impacted by the circumstances raised in the grievances of these two players.”

Players' union executive director Michael Weiner expressed disappointment Monday at Das's dismissal.

"Shyam Das has been served the parties with distinction and professionalism for 13 years," Weiner told USA TODAY Sports. "We think he's an excellent arbitrator.''

The process of firing of the independent arbitrator is part of the labor agreement between the league and union for the players. While the latest version of the Basic Agreement has not yet been released, the 2007-11 CBA reads:

At any time during the term of this Agreement either the Association or the [Labor Relations Department (LRD)] may terminate the appointment of the impartial arbitrator by serving written notice upon him and the other Party; provided that no such termination shall in any way impair the authority of the impartial arbitrator to render awards with respect to matters fully submitted to him. Within 30 days of any such termination, the Association and LRD shall either agree upon a successor impartial arbitrator or select a successor from an American Arbitration Association list, as set forth [in the CBA].

In terms of finding a replacement for Das, the (prior) CBA specifies the following:

“Arbitration Panel” shall mean the impartial arbitrator or, where either Party elects in advance of the opening of the hearing in a matter, a tripartite panel so empowered and composed of the impartial arbitrator and two party arbitrators, one appointed by the Association, the other appointed by the LRD. The impartial arbitrator, who shall in all instances be designated as the Panel Chair, shall be appointed by agreement of the Association and the LRD. In the event the Association and the LRD are unable to agree upon the appointment of the impartial arbitrator, they jointly shall request that the American Arbitration Association furnish them a list of prominent, professional arbitrators. Upon receipt of said list, they shall alternate in striking names from the list until only one remains. The arbitrator whose name remains shall be deemed appointed as the impartial arbitrator.

Das was involved in all cases in which a player that tested positive for performance-enhancing drugs appealed to the arbitrator, as outlined in the drug agreement. Until Braun, Das had never overruled a suspension by the league.

He was also involved in MLB’s attempt at contraction in 2001-02. Das heard testimony from the league and others in the case after the MLBPA filed a grievance to block the contraction of the Montreal Expos and the Minnesota Twins. Other cases included cutting Braves reliever John Rocker from 45 days to 14, and also cut his fine from $20,000 to $500 for scathing comments Rocker made to Sports Illustrated.

Das was not only involved in matters involving MLB and the MLBPA. Currently he is the arbitrator assigned to address the “Bountygate” case with the New Orleans Saints.

The AP provided a history of the arbitrators that have been assigned to resolve matters with MLB and the MLB Players Association as part of the story on Das’ dismissal. As reported:

Das took over as baseball's permanent arbitrator from Cornell professor Dana Eischen, who was hired in December 1997 but quit after ruling the following May against J.D. Drew's grievance seeking free agency.

Many of baseball's grievance arbitrators have had brief tenures, with the list including Lewis Gill (1970-72), Gabriel Alexander (1972-74), Peter Seitz (1974-75), Alexander Porter (1977-79), Raymond Goetz (1979-83), Richard Bloch (1983-85), Thomas Roberts (1985-86), George Nicolau (1986-95), Nicholas Zumas (1995-97) and Eischen (1997-98).

Joseph Sickles heard one case in 1976, and temporary arbitrators were used between Eischen and Das.

Seitz was fired after he ruled against owners in the Andy Messersmith-Dave McNally reserve clause case that led to free agency. Roberts was fired after deciding management colluded against free agents between the 1985 and 1986 seasons.


Maury BrownMaury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He writes for Baseball Prospectus and is a contributor to Forbes SportsMoney blog.. He is available as a freelance writer. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network (select his name in the dropdown provided).

Follow Maury Brown on Twitter Twitter

Follow The Biz of Baseball on TwitterTwitter

FacebookFollow the Business of Sports Network on Facebook

 
MLB, MLBPA Close Loopholes Around Personal-Service, "Marketing" Clauses PDF Print E-mail
User Rating: / 14
PoorBest 
Written by Maury Brown   
Friday, 20 April 2012 12:06
MLBPA

Kiss personal-service and “milestone” marketing clauses in MLB goodbye. Going forward, MLB and the MLBPA have agreed to stop allowing those aspects into contracts following  deals by Albert Pujols and Ryan Zimmerman, according to a report by Jayson Stark of ESPN.com.

In those contracts, both players were offered personal-service clauses – salary after the player retired. As detailed on The Biz of Baseball regarding Pujols’ contract:

After the 10-year deal expires in 2021 (or possibly earlier, depending on how his play goes), a new 10-year deal kicks in. The sides agree that after the expiration of the contract or Pujols' retirement as a player, they will enter into a 10-year personal services relationship and Pujols will be paid $1 million annually, or $10 million total. What is involved in the contract is not totally known, but we can assume that one possible route would be to use Pujols as a hitting coach, or possibly an emissary for the Angels in a PR capacity.

Zimmerman gets a five year, $10 million personal service contract at the end of his deal. Both Zimmerman and Pujols will be grandfathered in. No further provisions of that type will be allowed.

Also, the league and union for the players agreed that provisions that allowed for “marketing agreements” would no longer be allowed. This aspect was in the Pujols deal and prior with Alex Rodriguez. As part of the Pujols deal, he receives $3 million payment for 3,000 hits and a $7 million payment for 763 home runs.

As Stark reports, Michael Weiner, executive director of the players union, also confirmed the new rules, saying: "Both clauses raise questions under the Basic Agreement, and both parties felt they should not be a subject of individual negotiations."

While the latest CBA has not yet released to the public, the 2007-11 agreement reads on page 22 (page 10 after the Table of Contents):

(6) Other Forms of Additional Compensation

All other forms of compensation, including but not limited to the following, are not addressed herein and are to be determined according to the facts in each situation:

(a) payments for performing services for a Club in addition to skilled services as a baseball player;

Stark adds at the end of his piece:

One source also told ESPN.com that baseball is trying to close loopholes that teams might be able to use to avoid paying luxury tax, and both of these provisions fall under that heading because neither milestone bonuses nor personal-services deals are considered to be guaranteed money.

Maybe some of you are recalling the loophole that the Red Sox used on contracts with Josh Beckett and later with Adrian Gonzalez. In those deals, the Red Sox were looking to avoid having their salaries count against the Luxury Tax for the season in which the deal was reached. The loophole was that if you signed the player after Opening Day, the Luxury Tax computations rolled over to the following year.

So, what Stark speaks of in his piece today is not what this is about. That’s because that loophole was closed as part of the new labor deal. Stark touched on this as part of his piece on Cole Hamels (see blog post, Don’t discount Blue Jays’ great spring under the subheading “Strike Two – Luxury Lane Dept.”)

The rule now goes like this, according to sources familiar with the new labor agreement:

• If Hamels signs a long-term deal before Opening Day 2012 and his $15 million salary for 2012 doesn't change, he and his team would have the right to choose whether they want the luxury-tax computations to begin with his 2012 salary or with the rest of the extension, beginning in 2013.

• If he signs an extension at any point during the season, the luxury-tax stuff automatically kicks in starting in 2013.

But the moral of the story is, it doesn't matter when he signs. The Phillies can put off the luxury-tax pain until next year if they were to get a deal done this weekend, next weekend or on Labor Day weekend.

So, the league and MLBPA are firming up contract language, none of which are likely to make agents happy. Such is the cat and mouse game that’s been raging since free agency came about in MLB in 1974.

Donate
Click to donate
to Autism Speaks

Maury BrownMaury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He writes for Baseball Prospectus and is a contributor to Forbes SportsMoney blog.. He is available as a freelance writer. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network (select his name in the dropdown provided).

Follow Maury Brown on Twitter Twitter

Follow The Biz of Baseball on TwitterTwitter

FacebookFollow the Business of Sports Network on Facebook

 
Complete List of 243 Foriegn-Born Players on 2012 Opening Day Rosters PDF Print E-mail
User Rating: / 16
PoorBest 
Written by Maury Brown   
Thursday, 05 April 2012 19:47

MLBTwo-hundred forty-three players on 2012 Opening Day 25-man rosters and inactive lists were born outside the 50 United States, it was announced today.  This year’s percentage of 28.4 marks the third highest of all-time and is up from 27.7 in both 2010 and 2011.

The 243 players born outside the United States came from a pool of 856 players (749 active 25-man roster players and 107 disabled or restricted Major League players) on April 4th rosters and represent 15 countries and territories outside the U.S.  The 28.4 percent trails only 2005, when 29.2 percent (242/829) of Opening Day players were foreign-born, and 2007, when 246 players – 29.0 percent of all players – were born outside the U.S.  In addition, this year’s 243 foreign-born players rank as the second-most in history, trailing only the 2007 high of 246.  Last season, 234 out of 846 players were foreign-born, totaling 27.7 percent.

The Dominican Republic again leads the Major Leagues with 95 players born outside the U.S, which is the second-most the nation has produced on Opening Day rosters, behind its 99 in 2007.  Venezuela ranks second with 66 players, its highest total ever on Opening Day rosters.  Canada ranks third with 15 players, followed by Japan (13); Cuba (11); Puerto Rico (11); Mexico (9); Panama (7); Curaçao (4); Australia (4); Nicaragua (3); Taiwan (2); Colombia (1); Italy (1); and South Korea (1).  The three Nicaraguan-born players are the most on Opening Day rosters since 1995, when MLB began to release annual Opening Day data.  Cuba matched its high of 11 set in 2002 and 2011, and Curaçao tied its high of four set in 2009.  In addition, infielder Alex Liddi, the first Italian-born and developed player to play Major League Baseball after debuting last September, made the Seattle Mariners’ Opening Day roster.  Liddi, 23, is just the seventh Italian-born player in Major League history and the first since infielder Reno Bertoia in 1962.  Liddi is the first alumnus of the MLB International European Academy, which was established in 2005, to make an Opening Day roster.

The Kansas City Royals, the hosts of the 2012 All-Star Game, have the most foreign-born players with a total of 13, followed by the Colorado Rockies and the New York Yankees, who each have 12.  Three Clubs – the Milwaukee Brewers, the New York Mets and the Mariners – each have 11 foreign-born players.  The Yankees have players from seven different countries and territories outside the United States: Canada, Curaçao, the Dominican Republic, Japan, Panama, Puerto Rico and Venezuela.

Select READ MORE to see a list of foreign-born players on 2012 Opening Day rosters

Read more...
 
Derek Jeter, Cliff Lee, Albert Pujols Top-Selling Jerseys in MLB for 2011 PDF Print E-mail
User Rating: / 15
PoorBest 
Written by Maury Brown   
Thursday, 05 April 2012 14:22
Jeter
Derek Jeter was MLB's top-selling jersey in '11

Gear. If you’re a fan of baseball, you’ve got some. A cap… a jersey. You’ve probably got one or both.

But, when you think about being a fan and your favorite active player, owning a jersey is to show you’re elegance.

Today, MLB and the MLBPA released info on jersey sales for last year with 4 of the top 20 jerseys by sales numbers coming from the Yankees, Jeter, A-Rod, Cano, and Rivera).

Derek Jeter of the New York Yankees, Cliff Lee of the Philadelphia Phillies and Albert Pujols of the Los Angeles Angels of Anaheim top the list of MLB Most Popular Jerseys based on sales of official Majestic jerseys for the 2011 calendar year.

Seven players – Robinson Cano, Carl Crawford, David Freese, Adrian Gonzalez, Hunter Pence, Mariano Rivera and Justin Verlander – who did not make last year’s list cracked the top 20 this time around. Players representing 11 different MLB Clubs make up the list of top 20 most popular jerseys, with seven different clubs in the top ten. In addition, 12 of the top 20 players are under the age of 30. The Phillies and Yankees, the teams with the two best records last season, each have four players in the top 20. The top 20 include nine infielders, five pitchers, four outfielders and two catchers. Of the top 20, 12 were All-Stars in 2011 and 14 played on teams that reached the Postseason.

MLB Most Popular Jerseys
Based on Majestic 2011 sales figures
1. Derek Jeter, New York Yankees
2. Cliff Lee, Philadelphia Phillies
3. *Albert Pujols, LA Angels of Anaheim
4. Josh Hamilton, Texas Rangers
5. Roy Halladay, Philadelphia Phillies
6. Tim Lincecum, San Francisco Giants
7. Dustin Pedroia, Boston Red Sox
8. Ryan Braun, Milwaukee Brewers
9. *Hunter Pence, Philadelphia Phillies
10. Buster Posey, San Francisco Giants
11. Chase Utley, Philadelphia Phillies
12. Joe Mauer, Minnesota Twins
13. Justin Verlander, Detroit Tigers
14. Adrian Gonzalez, Boston Red Sox
15. Alex Rodriguez, New York Yankees
16. Ian Kinsler, Texas Rangers
17. Robinson Cano, New York Yankees
18. Mariano Rivera, New York Yankees
19. Carl Crawford, Boston Red Sox
20. David Freese, St. Louis Cardinals

Source: MLB, MLBPA

Donate
Click to donate
to Autism Speaks

Maury BrownMaury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He writes for Baseball Prospectus and is a contributor to Forbes SportsMoney blog.. He is available as a freelance writer. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network (select his name in the dropdown provided).

Follow Maury Brown on Twitter Twitter

Follow The Biz of Baseball on TwitterTwitter

FacebookFollow the Business of Sports Network on Facebook

 
Bud Selig’s Comments Before MLB's 2012 Opening Night PDF Print E-mail
User Rating: / 10
PoorBest 
Written by Maury Brown   
Wednesday, 04 April 2012 18:16

Selig

By now it’s a well-worn tradition that the commissioner of baseball talk up how well Major League Baseball is doing before a season starts. And, 2012 is no different as Commissioner Selig is on-hand at the inaugural game the new Marlins Park.

Addressing the media, Selig said the following:

On Marlins Park: On the "I just stood out on the field & looked around. All you can say is, `Wow.'" (Jayson Stark via Twitter)

On Marlins Park: "I have no trepidation in saying that 10 years from now, people will say this was a tremendous thing for this city." (Jayson Stark via Twitter)

On the mega-deal that Joey Votto reached with the Reds: "Some signings I'm not wild about, but that isn't one of them." (Jayson Stark via Twitter)

On getting the A’s into a new ballpark, we’re no closer: "Like every other problem we've had, it will be solved." (Jayson Stark via Twitter)

On a new ballpark for the Rays, Selig touts patience: "Five or 10 years ago, you could make a case this (Marlins Park) would never happen" (Jayson Stark via Twitter)

On the DH: It will take a catalytic event" to put the DH in both leagues or kill it in both. (Jayson Stark via Twitter)

Finally, Selig, in an interview with the SportsBusiness Daily said that he believes MLB will see a 3-5% attendance increase in 2012. We agree. In fact, it could be higher. See what we said on March 1.

Donate
Click to donate
to Autism Speaks

Maury BrownMaury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He writes for Baseball Prospectus and is a contributor to Forbes SportsMoney blog.. He is available as a freelance writer. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network (select his name in the dropdown provided).

Follow Maury Brown on Twitter Twitter

Follow The Biz of Baseball on TwitterTwitter

FacebookFollow the Business of Sports Network on Facebook

 
Scarborough Sports Releases Info on Gen Y Interest in MLB PDF Print E-mail
Written by Maury Brown   
Tuesday, 03 April 2012 14:29

MLBWhile baseball has been pained as a stogy old-man’s game, the fact is that, yes, MLB has a young audience. As the 2012 season gets fully underway tomorrow when the Marlins host the Cardinals on ESPN, Scarborough Sports Marketing has released data on Generation Y Major League Baseball fans. Generation Y, defined as American adults age 18 to 29, make up 20% (46M) of the American adult population and 44% of them are MLB Fans. According to Scarborough:

  • 30% of Gen Y MLB Fans are willing to spend $25-$49 on a single game MLB ticket.
  • 12% of Gen Y MLB Fans are interested in purchasing season tickets.
  • Gen Y MLB Fans are 37% more likely than all MLB Fans to have bought MLB apparel with a team logo in the past 12 months.
  • The season opener will be between the St. Louis Cardinals and the Miami Marlins. 72% of Gen Y St. Louis residents watched, attended or listened to a Cardinals game in the past year and 36% of Gen Y Miami residents watched, attended or listened to a Marlins game in the same time period.

Some thoughts on the report…

The idea that less than a third of Gen Y MLB fans are willing to purchase a single game ticket in the defined price range isn’t exactly great news. While there are tickets priced below that threshold, the majority of tickets, aren’t.

On the flip side, you get 12 percent interested in purchasing season tickets. The bad news is, Scarborough doesn’t say how many of that 12 percent actually acted on it.

The third bullet point is interesting in that baseball merchandise is seen as a fashion trend that is increasing. One need only look at some of the colorway options available (pink hats for women, all red Yankee or all green Red Sox, as well as pretty much all teams represented as black hats with black logos) shows that MLB as a purely fashion statement – something that may be outside of interest in “baseball” – is trending with Gen Y.

On the last bullet-point… well, this should be expected. The Cardinals, of course, won the World Series last year. The Marlins haven’t been relevant since last winning the World Series in 2003. However, getting back to the “fashion” aspect, while one can quibble with whether the new Miami Marlins logos and uniform colors “work”, it is new, and in that, fans will likely purchase the merchandise. And, let’s not forget that the additions of Jose Reyes, Mark Buerhle, Heath Bell, and Ozzie Gullien (plus having the Marlins be the subject team for this year’s edition of “The Franchise” on Showtime) will give the Marlins increased marketability. Expect interest in the Marlins to go up considerably this year.

Donate
Click to donate
to Autism Speaks

Maury BrownMaury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He writes for Baseball Prospectus and is a contributor to Forbes SportsMoney blog.. He is available as a freelance writer. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network (select his name in the dropdown provided).

Follow Maury Brown on Twitter Twitter

Follow The Biz of Baseball on TwitterTwitter

FacebookFollow the Business of Sports Network on Facebook

 
«StartPrev12345678910NextEnd»

Page 7 of 189
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?