Franchise Location and Relocation Under the Major League Rules
by Doug Pappas
Major League Baseball's governing documents aren't intended for public
consumption. But when I recently spent two quality hours with a 1999 edition of
the Major League Agreement and Major League Rules, I took detailed notes of
certain key provisions. I don't think any of these sections have been amended
since then.
Orioles' owner Peter Angelos has repeatedly warned MLB against moving the
Montreal Expos to Washington, D.C. or northern Virginia. But can he stop the
move? That may depend on where the club would play.
Angelos' rights are derived from the Major League Rules. Rule 52 allows Angelos
to block any other franchise from playing within 15 miles of the Orioles'
territory. This territory is defined to include Baltimore, Anne Arundel,
Howard, Carroll and Harford Counties in Maryland -- but not the D.C. suburbs of
Montgomery and Prince George's Counties. However, my unscientific measurement
on a Rand McNally road atlas suggests that when measured from the corner of Anne
Arundel County closest to the District of Columbia, the Orioles' 15-mile zone of
protection extends almost exactly to Washington's RFK Stadium. It doesn't
include southern or western Washington, or the Virginia suburbs. As a result,
the Orioles' rights may depend on which of the proposed stadia is actually
built.
Several other clubs' territories raise interesting possibilities. In
metropolitan Los Angeles, the Dodgers and Angels share Orange, Ventura and Los
Angeles Counties -- but not Riverside or San Bernardino Counties east of Los
Angeles, with a combined population in excess of 3,200,000. Parts of New Jersey
are also open to invasion: Philadelphia's territory is limited to Gloucester,
Camden and Burlington Counties, while the Mets and Yankees have the rights to
Bergen, Hudson, Essex and Union Counties.
While New York's and southern California's clubs share a common territory, the
San Francisco Bay area is divided unevenly. The Giants' territory includes San
Francisco, Marin, San Mateo, Santa Cruz and Monterey Counties, while Oakland's
is limited to Alameda and Contra Costa Counties. Moreover, the Giants have the
right to exclude other major league teams -- though not minor league teams --
from Santa Clara County, the heart of Silicon Valley. If the Athletics want to
move south, they'll have to buy off the Giants.
More generally, the Major League Agreement provides that franchise moves require
the approval of 3/4 of all clubs in the affected league, plus a majority of the
clubs in the other league. A club in one league can move into the territory of
a club in the other league, so long as (a) 3/4 of the affected league's teams
consent; (b) the two parks are at least five air miles apart, unless the two
clubs mutually agree to waive this requirement; (c) the newcomer pays the
existing club $100,000, plus half of any previous indemnification to invade the
territory; and (d) the move leaves no more than two clubs in the territory.
These requirements date to late 1960, when they were adopted to govern the
expansion Los Angeles Angels' move into the territory claimed by the Dodgers in
1958.
If you and your rich friends think these rules are too restrictive, there's
another option: start your own officially recognized major league. Major
League Rule 1(d) allows any group of eight clubs to apply for major league
status if it meets the following criteria:
A new league can apply for major league status if it meets all of these
requirements except for paid attendance.
As the reference to a 154-game schedule suggests, these standards date to the
1950s, when they were adopted to ease Congressional pressure on MLB to expand.
At the beginning of the decade, the Pacific Coast League was threatening to
declare itself a third major, while 10 years later the well-financed Continental
League threatened the MLB duopoly until the AL and NL expanded into its best
markets. The attendance and population requirements are low enough that a
determined group of AAA owners could meet them.
Two years ago, MLB's "Blue Ribbon Panel Report" rejected suggestions
that MLB ought to contract by two or more teams, instead recommending
"strategic franchise relocations" to better markets. Commissioner
Selig's handpicked "independent" members suggested that struggling
teams might consider moving "to a very large market already occupied by one
or more high-revenue clubs." Although a third team in metropolitan New
York would do more than any luxury tax to reduce the Yankees' revenue advantage,
the Major League Rules effectively preclude this option. Similar rules in other
sports have been successfully challenged under the antitrust laws -- if
Washington, D.C. doesn't get the Expos, perhaps MLB's ludicrous exemption will
finally be repealed. I'm not holding my breath...
Doug Pappas is an author of Baseball Prospectus. You can contact him by
clicking here.