IGNORING HISTORY CAN HAVE PERILOUS CONSEQUENCES

     The recent filing for Chapter 11 bankruptcy by the McCourt “led” Dodgers has seeds from the past covering the coffin.  It is the latest example of short-term management decision-making; decisions based upon a complete ignorance of, or at best, disregard for the lessons that history tries to impart.  Unfortunately, very few in positions of power have knowledge of, or care to learn about, history.  I suppose the vanity of power makes the possessor thereof content with the idea that they are impervious to the idea that history does, often, repeat itself.

     Many stories of team financial problems have recently centered upon exorbitant long-term player contracts – payments so large that the current cash flow could not withstand.  But why let that stand in the way of signing a player? All you have to do is delay the payments and spread them out over future years as if tomorrow never comes.  Couple this type of short-term thinking with the decoupling of a messy divorce and you suddenly find the Commissioner involved in whether the “terms of a divorce” are in the “best interests of baseball”.  All the while, Manny Ramirez waits patiently at the mail box and collects the bounty from those who chose to ignore history.

     All of this reminds me of one of the earliest post-“free” agency stories regarding the perils of long-term guaranteed player contracts.  When the Houston Astros signed Nolan Ryan (1979) to a guaranteed million/year for three years, the baseball ownership world was left quivering.  It was as if a group of King Nebuchadnezzars were dining together when “the mysterious handwriting appeared on the wall.”  Only, in this case, the handwriting was the ink which had flowed from the pen of John McMullen, the Houston Astros’ owner.

     Upon hearing about the Ryan signing, one of the most livid persons on the planet was J.R. Richard’s agent, Tom Reich.  The Astros’ G.M., Tal Smith, had not been a party to the Ryan deal; owner John McMullen had “given Ryan the store and in return got the attention he craved.” {from “Lords of the Realm by John Helyar}. Tal Smith immediately became the recipient of the wrath of Tom Reich.  Reich (who later would represent one in every six major leaguers) had just negotiated what he presumed was the best deal possible for his client:  J.R. was on the verge of qualifying for free agency at the end of the season.  The 6’8” power pitcher had, in 1978, completed his third straight season with 18 or more wins & led the league in strikeouts; these numbers were far superior to those of Ryan at that time.  Reich and Smith had jockeyed all year long on the terms for keeping Richards an Astro.  The deal:  A five year deal – but a base salary of $200,000 per year and a lot of performance incentives built in: Cy Young award, innings pitched, etc. – a potpourri of performance clauses which maxed out at $800,00 in any given year.

     Ryan’s guaranteed contract had Tal Smith’s phone “burning” with tirades from every other G.M. and from Tom Reich! Screaming, Reich demanded a renegotiation of his client’s contract.  He didn’t stop screaming until Smith caved and they drew up a new contract:  A guaranteed $800,000/year for four years!  Sadly, and unfortunately, J.R. Richard suffered a stroke in 1980 and never pitched again.  The financial structural future of the Astros was left in shambles for years to come.  Smith, in later years, recalled that the Ryan deal had totally annihilated performance-based long-term contracts that he, and others, were trying to establish in dealing with the realities of “free” agency.

     A few thoughts besides the obvious perils from not learning lessons that history is begging to teach us.  Free agency is a two-sided coin:  In the Curt Flood, Catfish Hunter, Dave McNally, & Andy Messersmith sense, it represented potential freedom from bondage to one team; at the ownership level, “free” agency is one of the most ironic oxymorons in the English language; it most certainly is not free! 

     After almost four decades, baseball ownership has still not figured out how to come to terms with this animal called “free agency”.  For a while they tried to spend money as if it must be there – after all – they still had checks!  Next came the collusion phase and they paid a heavy legal penalty for this tactic.  Now we have a very liberal “salary cap” which is structured to “curb” the large-market teams from excessive spending by making them pay a “luxury (sin) tax” to the have-nots – sort of an “excuse me, please” – while I try to buy another World Series ring.  Those who cannot resist the temptation to “keep up with the Joneses” (i.e., Steinbrenners) now resort to paying for “that which they cannot afford” by pushing it into obligations far into the future.  The future has come home to roost at Chavez Ravine, Shea, and several other places we probably are not, as of yet, privy to.  You know baseball has a problem when they begin emulating the practices of Congress for the past half a century!

I might feel some empathy for G.M. Smith and the uncomfortable position his boss placed him in with the Ryan signing – except – who forced him to renegotiate the signed deal with Reich and the Richards’ contract?  Someone explain to me why professional sports has a history of renegotiating legal contracts that the employee was more than happy to sign at the inception of the deal?  Are they afraid of upsetting that fragile nirvana called “team chemistry”? Will it be shattered if a player is unhappy because he’s only making a few million instead of several million?  Truth be told – how often is there truly “team chemistry” regardless of compensation issues?  Most players are lucky if they are a member of just one team with real chemistry during their entire career.    Who’s running the asylum?  If baseball owners want a clear picture of their problem – get some Windex and a roll of paper towels and start cleaning the mirror.

Source:  “Lords of the Realm” by John Helyar

Pastor Paul – “seeking for knowledge of the truth”