MLB issues threat to MiLB

[NorthSideSox72]

Predications:

MLB clubs would rather not see their systems have teams go under at inopportune moments, and mess with the ability to get 2021 going as normal. But, MLB clubs are hurting for cash as it is, and many won't have the money and/or desire to dump millions into funding minor league teams just so they stay afloat for the next year.

So, Prediction:

MLB teams won't be much help. Some MiLB teams will reach points where they are leveraged out and/or don't have enough operating cash to continue. No one wants to buy a business in that condition, especially given all the questions about the unknown direction of MiLB and the likely slow recovery when there is one. So, MLB teams will monitor their affiliates AND those of other clubs closely. As some of them go into bankruptcy, and then receivership when they can't raise short term cash for the same business reasons, MLB teams will swoop in and buy those affiliates for pennies on the dollar. A club that might be worth $30M will sell for a few million. The MLB teams treat them as part of their portfolio, gain some equity over a few years, buying an asset with costs already stripped down. Any slim operating profit they get from the owned affiliates is icing on the cake, and can be used towards overall system investments. They get to rebuild the teams' business structures as they see fit, to fit within their plan of how they want the systems to run. Plus, the negative conditions lower the value of nearly all teams, so the MLB clubs with the ability to do so, begin buying other clubs that didn't die off. Within 3 years, the percentage of full season clubs owned by MLB teams will go from miniscule to fairly large.

 

[Harold's Leg Lift]

Well done MLB.  

[southsider2k5]

10 minutes ago, Harold's Leg Lift said:

Well done MLB.  

So dumb question here, but isn't this a normal thing?  I mean we have a draft every single year.  We don't add new teams every year, so for every new draftee brought in, someone has to be removed from a team somewhere else, right?  I think maybe this year is more stark and obvious because in a normal year you have a release here, a retirement there, and an injury somewhere else.  Normally there are cuts in Spring Training, and then the occasional cuts here and there as the season goes on.  Maybe some cuts don't happen because baseball related injuries happen, and some of those roster spots are saved by someone going on the DL, whereas this year no one is having a baseball related injury for all practical purposes.

I mean the White Sox cut 25 guys, which in a normal year, they bring into the system somewhere between 30-35 guys through the draft and UDFA signings, so aren't they just doing what they normally would do?  Instead of 25 guys being cut over the period of time from the middle of March to the middle of June, 25 guys are getting cut at the end of May.

The more I have thought about it, I think this is what is happening, right?  Or am I totally out of left field here?

[ChiSoxJon]

18 minutes ago, southsider2k5 said:

So dumb question here, but isn't this a normal thing?  I mean we have a draft every single year.  We don't add new teams every year, so for every new draftee brought in, someone has to be removed from a team somewhere else, right?  I think maybe this year is more stark and obvious because in a normal year you have a release here, a retirement there, and an injury somewhere else.  Normally there are cuts in Spring Training, and then the occasional cuts here and there as the season goes on.  Maybe some cuts don't happen because baseball related injuries happen, and some of those roster spots are saved by someone going on the DL, whereas this year no one is having a baseball related injury for all practical purposes.

I mean the White Sox cut 25 guys, which in a normal year, they bring into the system somewhere between 30-35 guys through the draft and UDFA signings, so aren't they just doing what they normally would do?  Instead of 25 guys being cut over the period of time from the middle of March to the middle of June, 25 guys are getting cut at the end of May.

The more I have thought about it, I think this is what is happening, right?  Or am I totally out of left field here?

We'll see soon enough, but sounds like more cuts than usual to save pennies, but definitely a valid point you raise

[ptatc]

1 hour ago, ChiSoxJon said:

We'll see soon enough, but sounds like more cuts than usual to save pennies, but definitely a valid point you raise

It may be in preparation for MLB to eliminate minor league teams.

[Y2Jimmy0]

6 hours ago, southsider2k5 said:

So dumb question here, but isn't this a normal thing?  I mean we have a draft every single year.  We don't add new teams every year, so for every new draftee brought in, someone has to be removed from a team somewhere else, right?  I think maybe this year is more stark and obvious because in a normal year you have a release here, a retirement there, and an injury somewhere else.  Normally there are cuts in Spring Training, and then the occasional cuts here and there as the season goes on.  Maybe some cuts don't happen because baseball related injuries happen, and some of those roster spots are saved by someone going on the DL, whereas this year no one is having a baseball related injury for all practical purposes.

I mean the White Sox cut 25 guys, which in a normal year, they bring into the system somewhere between 30-35 guys through the draft and UDFA signings, so aren't they just doing what they normally would do?  Instead of 25 guys being cut over the period of time from the middle of March to the middle of June, 25 guys are getting cut at the end of May.

The more I have thought about it, I think this is what is happening, right?  Or am I totally out of left field here?

You aren't wrong. It's not all about money though. The White Sox literally don't have room for any of these guys to play. Especially with Great Falls being removed next year. 

[ChiSoxJon]

4 hours ago, ptatc said:

It may be in preparation for MLB to eliminate minor league teams.

Such a shame for so many reasons

[Harold's Leg Lift]

Class organization. Good on the Royals. This is something the ivy league front offices of today just don't understand.  

[Quin]

Quote

"The antitrust exemption has flowed through my head about possibly taking that away from them," Tester said. "If they don't want to play with us, I'm not sure we need to play with them. ... In the end, this is about doing what's right by rural America."

https://www.espn.com/mlb/story/_/id/29795127/why-mlb-minor-leagues-know-end-sept-30

This would basically cement Manfred as the biggest idiot in sports.

[southsider2k5]

31 minutes ago, Quin said:

This would basically cement Manfred as the biggest idiot in sports.

Yeah, that would be a fire-able offense for sure.

[Dominikk85]

I think milb will be gone in a couple years at least as an independent org. Most likely mlb will run their own dev league in a  reduced form (maybe only 3 teams per franchise).

[Quin]

4 minutes ago, Dominikk85 said:

I think milb will be gone in a couple years at least as an independent org. Most likely mlb will run their own dev league in a  reduced form (maybe only 3 teams per franchise).

I think the fact that several members of congress are even floating the anti-trust exemption is a big deal. Running their own dev league and leaving the formerly affiliated teams to fend for themselves is what sets it down that path.

[oldsox]

MLB and the Astros have been sued by one of their ex-affiliates.  More to follow.  Lawyers a-go-go.